Blockchain for Dummies: A starter's guide to understand the Blockchain Part 4 - Blockchain and the Bitcoin
Recently, I was speaking to some of my friends about Steemit and how it is based on the blockchain. One of them asked me it is the same as "that bitcoin thingy". That got me started on what the blockchain is, and how it is not the same as bitcoin. The more I spoke about it, the more people realized that they had got it wrong all along. This post is aimed at doing the exact same thing here on Steemit. I am sure that most people here know that Blockchain and bitcoin are different, so I will keep it short.
The earliest version of the blockchain was developed in 2008 for the bitcoin. Simple as that. Blockchain technology was made public in 2009.
Blockchain technology is entirely exclusive of bitcoin and is used by many other cryptocurrencies. (including the one we all love: Steem).
Blockchain technology has been applied to many other applications such as payment systems, governence tools, ledgering etc.
Blockchain 2.0 introduced in 2014 focused on creating a clear distinction between Bitcoin and Blockchain and define their roles clearly. To be precise, Blockchain is an infrastructure, and Bitcoin is an asset that stands on that infrastructure.
As with many new projects, Blockchain was panned by skeptics as being something that would never gain traction. Yet, here we are, just 10 years later, with Blockchain being the name on most people's lips.
A few examples where Blockchain has been a disruptor technology can be use of the blockchain by the Russian government to keep their security deposit secure.
The advantages of the blockchain technology
One of the biggest advantages of the blockchain is that it makes possible to share a database without the need for any one specific administrator. This makes disintermediation (By providing customers, partners, and employees with direct access to information, you can provide them with complete control to request and receive information) of data truly possible. This is a highly advantageous feature, since database is not under a central control, and tampering with it is nearly impossible.
The security of data is one aspect of the blockchain. The other aspect is the integrity of the data. Transactions cannot be altered nor erased.
The need for a third party involvement is removed completely. The rules for a transaction are decided by the user themselves.
Blockchain data is highly accurate, widely available and of consistently high quality.
The reliability of the network is very high as it is reliant on several nodes rather than one centralized server. Even if 90% of the nodes in the network are down, the others would still be functional and be able to verify and process transactions on the blockchain. This way, information stored on the blockchain is safe and intact. Even if several nodes are removed from the network, the data will still be available.
The unique strength of the blockchain is its openness. Anyone can see the changes made and nothing can be hidden.
Data added to the blockchain is permanent. It cannot be erased.
The blockchain has a large number of applications, from being used in healthcare, software security, cryptocurrencies, legal systems etc.
This has to be the favorite advantage of programmers everywhere; Blockchain source code is open-source.
This more or less captures all of the advantages of the blockchain technology. But what of the disadvantages? Come back for more in my next post!
Cheers!
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You can check out the first post in the Blockchain for Dummies series via the links below:
Check out some of my other travel stories and articles from my Steemit blog via the links below:
Solo backpacking trip across the UK - Exploring London
500km of cycling across the European Countryside
Follow my steepshot account @lifewithanr3
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Very nice post about blockchain technololy and usecase
i upvoted and follow u
how do you think about bitcoin prices that the end of this there is a decrease,
What is your opinion?
i think we dont see the dip and the pump today is a bull trap
but i stay in trust for 2018 globally
Indeed there is a decrease. But that is normal as with any crypto currency, or even FIAT (simply put, real world currency). Do read this post to know why all cryptos have gone down.
Thanks! :)
I’ll have to go through these, I know the basics, but there are a bunch of gaps in my understanding. Im still not sure what smart contracts are and how other proofs besides proof of work actually work. Reading the Etherium whitepaper soon...
I really do not like to read white papers myself because they are sometimes too technical. I am not really interested in knowing how something works from a technical point of view, but I would like to know how something works and why it is designed that way as a very good summary or explanation post.
That was also the main reason why I started a Blockchain for dummies post, to summarize all I know and what I have been learning about the Blockchain.
I know what you mean. I just want to get into the heads of the people who are developing this stuff a little to see where they are coming from. Interviews work too, but theres no chance with Mr. “Nakamoto” so I did read bitcoin. Etherium and steemit are the only other two I’m going to read for now.
Makes sense to read on Steemit since we are committed long term to it. Etherium because of its helpfulness in many applications makes it worth a read!
I have TON (Telegram Open Network) and SMTs on my list to read. (SMT since the time it came out).
Again such a great explanation, simple, concise and to the point. I think that I can use your posts as a reference when explaining the new technologies to others!
As a programmer I'm amazed and still cannot totally grasp the possibility to have a decentralized database. I'm already thinking of writting one Dapp, but of course need to learn so much more.
Thank you, do come back for more. I am glad it helps you that way!
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