Steemit Crypto Academy Contest / S8W1 - The Importance Of Blockchain Technology
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Hi steemians,
Welcome to my blog today. I'm so happy to be among those participating in season 8 of the engagement challenge. It has always been a wonderful encounter here in the academy as I learn new things and explore more hidden knowledge by carrying out a few research work.
Welcome to my blog today. I'm so happy to be among those participating in season 8 of the engagement challenge. It has always been a wonderful encounter here in the academy as I learn new things and explore more hidden knowledge by carrying out a few research work.
Today, the topic of discussion is indeed a beautiful one and an important one for all steemians. It's no longer news that blockchain technology is one of the trending technology in the world today and its importance can not be over-emphasised.
In this article today, I will be discussing the importance of blockchain technology by answering a few questions given below. Without further ado, let's go straight into the questions one after the other. Let's get started.
What are The main issues arising in the existing system of Blockchain technology
Being a trending technology, it also has some major set back that is needed to always improve any technology. The case of blockchain technology is no different. The following are a few issues arising in the existing system of blockchain technology.
One of the main issues with blockchain technology is security. The top priority of every tech is security because that is where they the gain trust of the masses or users. In recent times, security has become one of the major issues associated with this type of technology as information stored using blockchain is compromised by different hackers.
Since blockchain uses a distributed ledger to store its data, hackers normally look out for ways to bridge the security and then make changes to the data in the blockchain and this will not be easily traced since it's operating a distributed ledger.
Another major issue arising in the existing system of blockchain is scalability. Scalability as we all know refers to the ability to easily make changes or adapt to changes at any point in time. Blockchain technology is not scalable enough and hence it's difficult to give a good result when the data given is changed I.e either increased or decreased as the case may be.
Blockchain technology has been observed to reduce speed when performing several tasks at the same time. When there is more work, the technology becomes slower in executing its task. It is supposed to work at the same speed as it is working when handling fewer jobs.
Blockchain technology also has this issue of energy being consumed when the technology is working. A good example is blockchain technology which uses the proof of work (PoW) consensus algorithm, here the blockchain requires a lot of energy to properly operate.
Since the machines used here are large and complex, they will require more energy to get them running. More also it requires a lot of effort from those trying to solve complex mathematical problems as always and that consumes lots of energy.
Since blockchain is a decentralized technology, the privacy of individuals is not always complete because everyone can see anything about you. It's good to some extent but in the part of privacy, I don't recommend it. In steemit for instance, whenever you drop a comment that you may only want one person to see, the entire people within the platform will end up seeing it.
This means that you can not privately discuss with someone using the technology instead you will ask the person to contact you via other social media means so that you can privately talk about the said issues you wish to discuss.
Explain to us some of the key features of Blockchain Technology
Just as we have a few issues which needed to be improved in blockchain technology, we also have some key features of blockchain technology which has made it stand out among other forms of technology. A few of these features can be seen below.
Blockchain technology is decentralized in nature which means that the technology does not permit a central authority to handle any affair. Here, if a user tends to carry out any transaction, he/she works directly without any intermediaries. The system is designed to operate based on a smart contract or written code that uses the if statement.
This means that if a certain condition is met, do what has expected if the condition is not met, then it should also do otherwise. This makes blockchain transactions faster as you don't need a third party to verify anything before proceeding. All these are done in a split second.
Another major feature associated with blockchain technology is its transparency in nature. Since blockchain is a distributed ledger, it means that its data are stored on different nodes or computers around the world hence whatever is seen by user A in London will also be seen by user B in Nigeria.
With this type of transparency, it is difficult or impossible to say something else about a given data because millions if not billions of person has seen the data as it is. So transparency in the blockchain is what has made a lot of people key into this technology.
One of the most unique aspects of blockchain technology is the immutability of the data. Immutability means that data once stored can not be edited or changed. This is the key difference between blockchain technology and normal database.
In the blockchain, once your data is stored, it can be accessed across different nodes hence if node A has issues, it doesn't affect the same data stored in node B and so on. This data can be trusted because immediately it is validated and saved, there will be no form of change that will take place on it again it will remain the way it is.
What this means is that transactions on blockchain don't see distance as a barrier. Whenever you are performing any transaction, all you need to do is key in the appropriate information and within seconds or minutes, your transaction will reach exactly where you are sending it.
So distance is always not a barrier when it comes to blockchain transactions and it goes faster depending on the speed of the network.
Give a basic and simple understanding of how blockchain technology works
The word blockchain means blocks of information connected and this connection forms a chain hence the name blockchain. The way the block connects is that block 2 will have the cryptographic hash of block 1 its timestamp and transaction data. Let's consider the image below.
How blockchain technology works
From the above image, you will notice clearly that a transaction has been introduced into the blockchain. The block of the transaction is created and sent to the various nodes in the blockchain network, this is to allow the different nodes to validate or verify the block or transaction that has been sent.
Immediately the transactions or block is validated by the different nodes in the network, the block is then added to the previous blocks immediately and it will remain there unchanged. This is only when the majority of the nodes validate the block and if the majority of the node doesn't validate the block or transaction it will be rejected and a new request for transactions has to be initiated again.
The essence of having a cryptographic hash of the block is to maintain the integrity of the data. This means that any block added has a cryptographic hash which makes changes difficult for hackers because that information has been stored already on the different nodes around the world.
In summary, blockchain works by requesting a transaction, using the transaction to create a block, sending the transaction or newly created blocks to different nodes around the world, validating the transaction or block from the different nodes and if it is successful, adding it to the existing block but if not successful reject the block or transaction and try again. So this is how the blockchain works in simple terms.
Provide an understanding of how we can be able to use Zero-knowledge proof for authentication
The Zero-knowledge proof is a method used for authentication in blockchain technology which allows two users to authenticate themselves while performing a transaction without revealing their identities to each other. In this type of proof, we have the prover and the verifier.
So the verifier must be convinced that the prover is part of the system by answering a few questions or puzzles that he/she will encounter to have access to the system. We can see a clear example of this scenario when signing up for some websites.
Captcha is authentication that confirms if we are robots or humans and it can be seen as a clear example of Zero-knowledge proof hence when trying to sign in to some system or when checking for plagiarism, you will be asked by the system to select a few things to confirm your authentication of the system. If you are unable to get it right, the system won't proceed but if you get it right, it will take you to the next stage.
Zero-knowledge proof has kept the system in check over the few years because companies and businesses today employ this technology so that only those who are part of them will have complete information about their products or activities. They only show you want they want you to see and the one that is exclusively reserved is for those who they have given access may be through authentication and registration.
If you have an account online, before accessing the account you have to provide some specific data and this data may be your username and password. This means that if you enter the wrong one, you won't be given access but if you enter it correctly, you will be granted access to go ahead. So in this case, you are the prover and the system serves as the verifier.
Advantages and Disadvantages Of Blockchain Technology
Indeed, everything that has an advantage also has a disadvantage. Blockchain technology despite how beautiful it looks has its merit and demerit alike. In this section, we are going to discuss a few advantages and disadvantages of this technology.
Advantages of Blockchain Technology
Transparency: One of the major advantages of blockchain technology is its transparency. Transactions can be seen by anyone anywhere around the world hence no foul play when it comes to this.
Decentralization: Another major advantage is the decentralization of the technology. Here no third party or intermediary interface in any transaction. The transaction here is between the buyer and the seller alone.
Immutability: Data stored in the blockchain can not be altered or deleted because it is kept in a distributed ledger which means in nodes across the world. So altering data here means going through all the nodes in the world and removing that data.
Fewer transaction fees: When performing any transaction on the blockchain, the charges are usually very cheap compared to when you are using a centralized exchange like the bank.
Fast and secured: Transactions within blockchain technology are very fast and secured. Take for instance you want to send money through western union from one country to another, it may take days if not months to get to the person. But with the help of blockchain, within seconds or minutes, you can send and receive your asset.
Disadvantages of Blockchain Technology
Absence of regulatory body: In blockchain technology, there is no regulatory body for the movement of crypto assets or recovery of any lost asset. Today you will see prices rising and tomorrow it is falling. No regulatory body to keep the value of the asset checked.
Irreversible transaction: When a user sends an asset to the wrong address, or he/she losses his private key to that account, the asset can not be recovered ever again. Currently, I have more than 5k TRX locked in a wallet I can't access.
Energy consumption: Blockchain consumes lots of energy especially when the equipment used is all big machines like in the case of bitcoin which uses the proof of work (PoW) algorithm, it consumes energy and time because it calculates complex arithmetic.
Cyber attack: Blockchain technology always has several cyber attacks as people are always online looking for loopholes to fit into and steal available information or funds of different users of the blockchain.
The importance of blockchain technology in our today's world can never be over-emphasised. We have seen the effective use of the blockchain in many aspects of our lives such as finance, medicine, education etc. The way data is stored has been improved greatly with the help of blockchain technology since storing data means it is completely immutable.
Despite the importance of this blockchain, we still have a few disadvantages associated with the technology which is also a good one because it goes a long way to make the system improve. Every time we spot lapses with technology, we see the solution being pro-founded. I want to finally invite a few friends to join this contest today if they have not made their entries @stef1, @wilmer1988, @lhorgic and @malikusman1.
Thank you, friend!
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This post has been upvoted through steemcurator08. We support quality posts anywhere and with any tags.
Thanks for the support @malikusman1
Hii @simonnwigwe
Thanks a lot for sharing your quality content with us. Blockchain is the progressing field and there is also the updation of new features in it everyday. Although there are some challenges in implementation of blockchain as you have explained energy consumption, scalability,security and privacy are the major issues in the implementation of blockchain technology.
You have explained well about the key features of the technology. Immutability, transparency and not Limited border transactions made it a worthy technology. You have very rightly said that the distance is not the problem while performing the transactions. We can make the transactions at anytime we want just by putting the accurate keys.
Your explanation about the working is also quite well.Blockchain works on the nodes or these blocks store the history also.You have also explained well about the Zero-knowledge proof that is a good way of authentication such as it did not require all the personal information for the verification.
You have rightly said Decentralization of the blockchain technology does not allow the involvement of third party so it enhances the security of the system.
You have explained very well about the major advantage and disadvantage of the blockchain technology.Its advantages of fast and secure, decentralized nature and transparency has gain the trust of the users.
The transparency sometimes also cause the privacy issues in users.You have explained very weĺl and presented a good entry.I learned a lot from your post.Thanks for sharing.
Good luck for the contest.
Thanks for your wonderful comment my friend
Assalamualaikum,
My dear friend @simonnwigwe I'm very happy to see your entry as your post is a good source of information for us. Thanks for sharing this post. You have explained everything in detail and deep.
Blockchain has serval problems running and these problems are Scability, Energy Consumption, Privacy and some more issues are running with Blockchain technology.
Privacy is although good on Blockchain but Blockchain is somehow more transparent as it allow anyone to see your transactions and information present on Blockchain even someone can see the assets in your account.
Blockchain is difficult to understand but when we have teachers like you it is very easy to understand. I really appreciate your efforts you made to explain Blockchain in simple steps and you also choose a best way to discuss Zero proof knowledge.
It's very terrible condition when we choose a wrong network as all the coins lost and I'm feeling sorry to read that your 5000 TRX are stucked which is a big amount.
Good luck in this contest and Have a nice day 😊
Regards: @cryptobitcoins
Thanks for your wonderful comment on my post my friend