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24th May 2018

The Ultimate Cheat Sheet on Blockchain


As you know, Blockchain is a trending technology, and as it is becoming popular, more & more companies, and developers are diving into it. Read this “ Ultimate Cheat Sheet on Blockchain”, and share to your social accounts if you find it helpful and interesting.

What is Blockchain Technology?

A blockchain, is a continuously growing list of records, called blocks, linked and stored securely using cryptography. Each block, typically contains cryptographic hash of the previous block, a timestamp, and transaction data.

By design, a blockchain is inherently resistant to modification of the data. It is “an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way”. For use as a distributed ledger, a blockchain is typically managed by a peer-to-peer network collectively adhering to a protocol for inter-node communication and validating new blocks. Once recorded, the data in any given block cannot be altered retroactively without the alteration of all subsequent blocks, which requires collusion of the network majority.

The blockchain is an undeniably ingenious invention — the brainchild of a person or group of people known by the pseudonym, Satoshi Nakamoto.

Why does the blockchain matter?

The blockchain is, in theory, future-proof and can be used by private companies and individuals to build private financial networks. This means that a large enterprise could build a financial system internally for use by employees or external vendors. Though most countries require tax to be collected from income, taxing company-to-company virtual currency transactions is tricky.

The blockchain can also be used as an identity system. Onename and Keybase use the blockchain to generate verifiable identification, like a national ID or driver’s license.

Who does the blockchain affect?

Corporations, small businesses, and individuals all need to be aware of the blockchain. Because the blockchain allows financial transactions to occur anonymously, the technology has empowered the growth of questionable, sometimes illegal, behavior. In recent years ransomware has become a popular method of extorting consumers. Black markets have exploded in popularity. These markets exist on the Dark Web and allow hackers to buy and sell stolen data, zero-day exploits, drugs, weapons, and humans. The United Nations, the FBI, and other law enforcement agencies attempt to track illicit Dark Web transactions, but Bitcoin-based markets continue to flourish.

Well-funded startups also use the blockchain. Because the blockchain is data-rich, secure, and offers unprecedented transparency the code can be used as the building block (pun intended) for numerous modern, and future, technologies and startup companies. Etherium, for example, is a blockchain startup that helps enterprise companies develop private chains and private currencies. Mycelium builds physical point-of-sale systems and debit cards for cryptocurrency.

I will keep updating this article, suggestions are welcome. Kindly mail your suggestions to [email protected]

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