Overview of Blockchain

Blockchain is a distributed ledger technology that brings a decentralized pathway to transfer assets and data and deploy applications for a fast & secure platform run by blockchain protocols. It facilitates secure, transparent, and immutable platforms that allow users to transfer data or assets without any need for centralized interference. Various blockchain networks are used to have effective decentralized platform development; some of them are Ethereum, Bitcoin, Solana, Tron, etc.  

Working of Blockchain

Let’s understand the basic algorithm of the most famous blockchain, Bitcoin, that follows the proof of work algorithm. Image: A provides a brief description of how blockchain works. Every transaction generates a hash value that is again combined to have the final hash to create a block. Block contains some components, which are: 

• Final Hash: A combined hash of transactions stores 256-bit data of transactions making it more secure. 

• Previous Hash: This is the hash generated by the last block that helps to make a chronological chain that enables immutability and accuracy.   

• Nonce: A nonce is a random number that shows the uniqueness of the block created.

• Timestamp: This is the mechanism used to determine the exact movement in hash the block has mined and verified by the blockchain network.

Comparing Blockchain & Internet

Blockchain Network & Its Consensus Mechanism

Let’s explore blockchain networks and the consensus that brings the industrial revolution. Blockchain is a public or private network that enables easy access. Some of the Blockchain networks with their consensus are given below: 

• Ethereum Blockchain is a layer 1 network that facilitates a secure and transparent platform designed to develop decentralized applications. This Blockchain switched to Proof of Stake algorithm, and the idea to create a wonderful network was proposed by Vitalik Buterin in late 2013 and launched in 2015. The whole network is monetized by the Ether symbol name ETH, and the total supply of eth is around 120 million. Ethereum is the first Blockchain that brings the concept of decentralized applications. 

• Solana Blockchain is a multi-layered network with a secure and transparent network that enables higher transaction speed. Solana breaks the record with 65k TPS (transaction per second) and handles lakhs of transactions with sustainable accuracy. This Blockchain is most famous for its Proof of history consensus making the whole network valuable. With the use of this algorithm, developers can create Dapps with complex smart contracts.

•  Tron Blockchain is the decentralized virtual machine that uses DPoS (Delegated- proof of stake) consensus to deliver voting rights to users for selecting delegates to verify and produce blocks; this increases the efficiency of the network and reduces cost. Developing decentralized applications with effective execution of smart contracts makes a highly scalable and accurate network. 

• Hedera Blockchain uses a hashgraph consensus that works to have an effective network. This agreement calculation fills in as a gossip model where hubs convey in the gathering or in the irregular geography of an organization. This makes the organization particular and less decentralized but mainly focuses on your business achievements  

Above Blockchain networks are just a few. For more details, you must go through this Quora link.