STEEMIT CRYPTO ACADEMY S8W1- THE IMPORTANCE OF BLOCKCHAIN TECHNOLOGY
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Greetings to all in this noble community today and in the steemit platform at large. I want to believe that we all are doing just great today and if so, thank be to the creator.
I welcome you all to a beautiful season of the steemit engagement contest. Currently the steemit engagement challenge season 8, week is running. This contest has been set by the steemit team to enhance engagement among users in this platform.
I will be participating in the engagement contest that has been organized by this community team regarding the steemit engagement contest which has been titled the importance of blockchain technology.
I urge us all to relax and stay put as I drop my entry regarding this contest today. I wish you a happy reading.
The main issues arising in the existing system of Blockchain technology
The blockchain as we all know is built on a specific nature known as the Decentralized system. It has a decentralized mode of operation by which third parties are excluded when one is making transactions.
The absence of third party has given the blockchain more power to influence other people on buying the idea and that is why we even see the centralized system making use of the decentralized system of operation because it is trust worthy to privatize one's information.
But in all that have been said, the blockchain is still faced with several issues and that I will be highlighting below.
The issues of security has now given double taught. As time goes on, the blockchain has proven not be be totally secured because of the current incidents that are happening lately on the blockchain.
It has now been noticed that the security system of the blockchain is now susceptible and can be tampered with by hackers who go about disrupting the security system of the blockchain security through one means or another.
Gone are the day whereby users hide their blockchain password safely and their asset is safe since it is on the blockchain that is well secured and can not be accessed without the particular key connected to your wallet but now. Many developers who turned out to be hackers have figured a way to bypass the security and renders it useless through several means.
So with these, I fear that the blockchain that is known to be highly secured is now vulnerable to hackers as we get to see several incidents regarding users keys been jeopardized and their asset stolen in thin air. So this is sure a major issue regarding the block chain.
This is also a wonderful feature of the blockchain that has currently turned out to be an issue too. One feature of the blockchain is total showcasing of transparency where we get to see transactions that has been carried out and also through the distributed ledger system of operation, we get to see point out the destination of the transactions.
This is now a prime factor of the blockchain not being private anymore because as times goes on it reveals to other users transactions that was carried out from and to what wallet via transparency of the distributed ledger.
Gone are those days that transactions are made without knowing the destination of the transactions due to privacy that was seen in the blockchain but now things are no more hidden again because of the distributed ledger transparency ystem of operation thereby revealing users data and these data can be accessed by other users in the system.
Scalability is also a major issue regarding the block chain for some time now. We get to see certain blockchain network unable to fasten the loads of transactions in the blockchain. It shows the ability for some blockchain network inability to increase the load of transactions and as such, the number of the nodes produced is less.
So this is a major factor that is seen as a bottleneck constraints regarding the blockchain system because this activity is supposed to enhance the activity and performance of the blockchain but with it inability to do so makes the network slow.
This is also a major issue regarding the blockchain. The energy that is consumed on every transaction regarding certain networks on the blockchain such as the POW typically known as proof of work is so marginal when it comes to energy intake and as such it consumes a lot of energy.
Many cryptocurrency network needs much energy in other to be kept running and those electrical powers are greatly seen on the high side which can cause damage regarding our environment if care is not taken vividly. So the energy needed by a particular crypto blockchain is top much and such energy can be dangerous to our environment and also to mankind.
The above are some key points regarding the matters arising that are related to the cons of the blockchain system of operation.
Explain to us some of the key features of Blockchain Technology
There are certain features of the blockchain that has made it more acceptable by all that believe and are found in the modern technology world and some of these features of the blockchain are as follows.
This is a wonderful characteristics of the blockchain that I fancy so much. The ability for power to be evenly shared is great. Here users are in charge of the activities regarding their portfolio and having authority over their assets in the blockchain.
Unlike the activities that are running in the centralized system, the decentralized system helps users to have great influence over their assets and are responsible for making transactions without waiting for a central authority.
In decentralized system of operation every user is entitled to making decisions regarding their asset and these decisions can not be overruled by a centralized body.
This is also a great feature of the blockchain. It has proven to be reliable and efficient in making transactions so faster and better. With this features, a great deal of funds can be sent to another user and in less than a minute, the funds or assets will equally get to the wallet of the receiver without having network issues. It is very fast and efficient to perform transactions anytime and anywhere.
Transparency is also a wonderful feature of the blockchain system. Transparency helps to track all transactions and as such, we can be able to keep track of transactions performed on the blockchain. With the Transparency feature in the blockchain it is easy to keep record of assets transferred to a particular wallet.
This has gone a long way to help in protecting our funds and tracking the wallet in which funds or assets are transferred to and it reveals certain identity of all transactions carried out on the blockchain.
Security is the main feature of the blockchain system. The reason why many users are seen making use of the blockchain is solely because of how secured it is and this feature has won the heart of many users and that is why we keep on seeing users making use of the blockchain security system.
Even in centralized system of operation just like the Banks and other financial institutions that operates on the decentralized system of operation are currently seen to be making use of the blockchain security system because it is known to be more safer and better.
It uses technology such as algorithm as passwords, the combination of algorithms, letter and alphabet helps to form passwords to access things and guessing a user's password is impossible.
So the security system of the blockchain is epic and great to talk about for it provides great security to your portfolios, funds on your wallet even your bank account is secured with the help of the blockchain decentralized security system of operation.
The above are some features regarding the blockchain system and these makes the blockchain wonderful and great to be adopted.
Give a basic and simple understanding of how blockchain technology works
The major concept of the blockchain is very simple and if forms the basic of how the blockchain works. We all know that the reason why we are yet to see more users coming into adopting the blockchain system is because they have a shallow or n9 understanding regarding the blockchain and the below gives a briefing regarding how the blockchain works.
Here, the distributed ledger consensus provides an exact copy of data/information it is evenly shared, distributed to various systems, areas and of course to users that are connected to one another.
The distributed ledger shares same information or data to it users at exact time frame and here the power of authority is basically shared among users connected to it and as such, each user has an authentication and password regarding the system.
Here each transactions are put down as blocks and every block is evenly connected to the recent blocks that were created through the help of another great feature of the blockchain known as cryptography and this forms the basis of cryptocurrency in the blockchain chain.
It enhances fairness in the blockchain as we get to notice that changes made on the blockchain are quickly stored and as such all users connected to it can view the happenings regarding transactions when it is carried out.
The distributed ledger system provides security and it shows great level of being secured and make sure that consensus is reached among all users that are connected to it. So with this it is impossible to have nodes with different set of data because they are linked to each other as the ledger make sure that consensus is reached an users and hence it is immune to fraudulent activities.
Cryptography forms the basis of security of data in the blockchain. Cryptography forms the house by which cryptocurrency is based on and as such cryptocurrency is secured with the backings of cryptography as it secures data on the blockchain.
It also encodes data and other valuable items by which no one can get access to unless the users that are solely in possession of the passwords. So with the help of the cryptography, informations are saved and highly protected.
Smart contract is also a basic feature regarding the blockchain and it also function to make certain transactions and on the blockchain. It also help to execute and validate agreement when carried out.
With smart contract, all participants are being guided when making transactions on the blockchain. The smart contract vividly make sure that all users connected to it must reach the basic terms before funds can be generated else it will be turned down if the terms are not reached.
The blockchain works on a decentralized system of operation and the decentralized system network is the reason why power is given to all users evenly. It is the distribution of power across users or participants regarding the blockchain system.
The decentralized system networks are mainly integrated to certain nodes and many computer systems via the internet connection as data. In general the nodes are shared among computer systems and as such each system could work independently. So even if when a particular nodes is down, it would not halt the activity regarding the blockchain because other nodes can still work and attain such goal regardless of the faulty node.
Provide an understanding of how we can be able to use Zero knowledge proof for authentication
The whole Idea concerning the zero knowledge proof is between two users. One being the one who verifies** and the other being the one who proves a value. So in a nut shell the ZKP is that user can prove a given value to another user that they typically know that same value without making it known to the verifier.
The zero knowledge prove is often use in several occasions such as verifying through authentication, to login crytocurrency wallets, lock folder, identification, and so on
In such scenario before verification happens, the user who verifies is expected to be vividly certain that the user who proves actually knows the hidden secret and in that same light, the user who proves is not to unravel the information to the user who verifies.
It all ends at the point where the verifier will provide certain questions to the user that is expected to prove it will have to give the correct answers regarding the question ask in other to satisfy the verifier curiosity and believe beyond doubt that the one who proves actually knows the information.
It is done using a set of algorithms alongside basic questions which is been rendered to the one who is to prove that the information is well known by providing the correct answers to the questions and providing solution to the algorithm.
And after a series of questioning and answering between the verifier and the one who proves, if all questions answered are correct and is related or matches the answer on it own end then the user who has proven to know the information will be verified.
Advantages and Disadvantages Of Blockchain Technology
Blockchain technology sure indeed has advantages and disadvantages as we know that everything in this up has it pros and cons. The below are few advantages and disadvantages of the blockchain technology.
| ADVANTAGES | DISADVANTAGES |
|---|---|
| 1 - The blockchain gives users the accessibility of their data by providing keys in algorithm like for securing their asset and information | 1 - most blockchain networks suffers the problem of Scalability and as such can not increase the loads of transactions. |
| 2 - It provides a decentralized system of operation by which power is been distributed and there is no center authority. As such, a user has power over his assets and he or she is responsible for all transactions performed | 2 - It is now susceptible to hackers as certain individuals have come out with a way to hack into people's wallets to steal their funds. |
| 2 - The blockchain has reduced the case of money laundry as one of it features is Transparency. This helps to reveal and track transaction movements. | 3 - There is high consumption of energy regarding the cryptocurrency and such high energy is costly to get and can endanger our environment. |
| 4 - It helps to record all transactions and store information for with that, it would be hard for one to steal from an organization without being caught as though the information can not be erase from the blockchain. | 4 - The case of not being able to retrieve your keys after they get missing is a big turn down regarding the blockchain. It does not have a password recovery option and once your keys are gone missing, your funds and assets are gone for good. |
So the above are both the advantages and the disadvantages regarding the blockchain technology. So as we all have seen, there's nothing in the planet earth that is made by man which is 100% accurate and has not lapses.
CONCLUSION
It was a pleasure to have take part in this contest today and I want to sincerely thank this community team for a wonderful job well done. Bye for now. I want to use this medium to invite some users to also participate in this contest and they are @great-grace, @promis-levi, and @v-brainer.
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Greetings friend, you have written so well on this topic under discussion i.e the importance of the blockchain technology. You have highlighted the pros and the cons of the technology which include decentralization, security, transparency etc.
Truly, the blockchain has showed some level of transparency and security for our various data. Issues such as not been able to get our asset when we loss our keys are the bigger problems we are facing in the world of blockchain today. I wish you success in your entry my friend.
Hii @solexybaba
A well written post you have presented
.Your explanation is clear and easy to understand.I have learned a lot from your post.
Blockchain Technology has the great importance you have clearly explained the issues in the implementation of blockchain Technology. Scalability or energy issues.
There are many key features of the blockchain technology such as transparency,fast transactions, security etc.
These make the blockchain a worthy technology. You have also pointed out the important protocols in the working of blockchain technology.
Zero-knowledge proof is the cryptographic technique of verification that authenticate the users without knowing the personal information.
Thanks for sharing.Good luck for the contest.
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