STEEMCRYPTOACADEMY SEASON3/WEEK6, HOME-WORK POST FOR STREAM4U

OVERVIEW

When we talk about blockchain is usually seen as the opposite of banking sector, imagine sending token to different people at the same time-frames, sometimes at different time-frames. On-like previously when we need post cash/token from one bank account to another and we have to pay huge fee in the transaction been carried out but innovations are here, now we can send token within little time frame and it is very easy and fast.

Blockchain has made transactions very eazy and fast, and there will be records kept courtesy the transactions that was officially carried out, now this has given a great overview regarding the intensity of financial institution bank, as the people can easily Explore the opposite available opportunity which is the blockchain, in blockchain technology performing transactions here the fees are minimal comparing it toward the banking sector.

Let's say you have a crypto wallet where your tokens are been stored that means automatically you have become a bank of your own, thus you have access over your own money and it will be difficult for third party to gain access to your wallet.

What is Blockchain and What are the types of Blockchains / Explain in detail the types of Blockchain?

Blockchain can be defined as a means of storing vital informations, and by so doing it will be very difficult for anyone to change the records emernating from the information, in previous years let's say in the 1990's internet was at the front burner, but here blockchain is here to stay, in blockchain it is nearly impossible to cheat and gain access to it.

Blocks; Blockchain can't operate without blocks, in the chain, and nodes, each of the blocks constitutes some numbers of transactions, each time there is a new transaction included in the blockchain, records that is inclined in that transaction are kept and added to the ledger of the participant. There is a decentralized database that is taken care of by various participants.

this is basically called Distributed ledger technology in a block-chain every transaction seems to be recorded in a ledger and officially stored in a block, let's look at a single block on a Bitcoin blockchain you will find out that it has up to 500 different transactions, only a single block.

Chain/nodes; nodes are connected to the chain, blockchain seems to be a kind of DLT, distributed ledger technology, in here transactions are recorded with a reputable cryptographic sign drawn called a hash. Let's say a block in a chain is changed a sign will be given that the blockchain have been tempered with, the only way for hackers to gain access to a blockchain is to change the whole blocks involved in the chain, which will be very difficult that's why to hack a blockchain is pretty much difficult to hack. Each information in a block has a direct link to the previous block, and this is how a chain is been formulated.

Bitcoin and Etherium blockchain keep on growing overtime simply because regularly blocks are constantly been added to the chain,this specifically boost the standard security structure in the blockchain technology

Minners; fraud is totally prevented in blockchain transactions must be validated before it's been included in a blockchain, miners do this simply to eradicate scams. You get cash confirming transactions in a block-chain. Let's pretty minnig in blockchain can be defined as the process that allows you to validate transactions in a block-chain.

TYPES OF BLOCKCHAIN

We have so many types of blockchain's around the globe today as it's been recorded we have up to three different types of blockchain's courtesy this lectures I will be explaining further, I will explain three.

PUBLIC BLOCKCHAIN

Anything regarded as public seems to be open to all, it is an open network they operates via a set of computing system that is practically Decentralized it is very much accessible to investors who is having the mandate of validating key transactions they are called miners they received massive rewards for each transaction that they validate.

Courtesy the fact that public blockchain is open to all it operates via two facet of consensus namely proof of work, and proof of stake, we have the Bitcoin and the Etherium blockchain, people are very much conversant with this two powerful blockchain's.

ADVANTAGES OF PUBLIC BLOCKCHAIN

Eazy to join;It is practically open to everyone since it is public anyone who is interested can officially join the frame, it operates more like a portal as far as you have a reliable device trust me you can gain quick access what you just need is a good network connection.

Stable security structure; various platforms that is insringed is to operating courtesy the maximum security, when network is been shared it gives way for a total hacking capability, that is why public blockchain pit in great effort to maintain it's public protocol so that hackers won't gain access, since the blockchain is open to all. There is a high maintenance in tense of the security structure.

There is lack of regulations; there is no key laid down rules and regulations regarding the network server usage, here platforms can be created without any form of all round limitations, when blockchain isn't limited there is no form of internal networking.

DISADVANTAGES OF PUBLIC BLOCKCHAIN

Lack of total usage of internet system; since they aren't regulated that means they aren't in the right phase to be used by anyhow internet system, using then to execute projects will be difficult simply because there are lots of processes to be exploited, and by so doing they might be vonurable.

Possession of limited capabilities; let's look at one of the most popular blockchain, the Bitcoin blockchain over the previous years, the original version of Bitcoin blockchain had limited capabilities promoting user's to transfer their finds from one particular wallet to another, bit now the blockchain have had a splendid Overview about that as transactions can be carried out within a shorter possible time-frame.

PRIVATE BLOCKCHAIN

This is commonly used for the development of internal networking system that is used to interject different limited user's all round, it is totally different courtesy it's users and the model of management, one thing to note here is that it is managed by a central system, on the other public blockchain that is Decentralized.

They have an individual acting as the administrator, handling all the affairs of the network in a typical mode of utilizing the various types of blockchain's in here the network isn't opened you need permission in order to join, they have a centralized model who controls how the system should work it is basically centralized.

ADVANTAGES OF PRIVATE BLOCKCHAIN

Excellent privacy; there is an overload of complete level of privacy intense of the nature of the network that is been shared all round, for intense confidential reason, since private blockchain offers this then it's very much preferable.

Scalability; your private based blockchain can be scaled based on your intensive requirements, if you look very well you will understand that few nodes are responsible for the network control, then the process will be thus very fast and efficient.

Compliance; this is very important regarding a particular industry, the ability to stick the the rules and regulations guilding the complexity, when compliance is lacking trust me there will be fault all round. This private blockchain have listed the compliance requirements in the ecosystem itself and the transactions here is super eazy and accessible.

DISADVANTAGES OF PRIVATE BLOCKCHAIN

slow process in transactions; in the private blockchain there are no limitations courtesy the total number of nodes, if plenty transactions are requested then the whole process will turn to becoming very slowgish in nature.

Lack of absolutely Transparency; The data that operates on the private blockchain seems to be kept in a private form, and it makes it difficult to be accessed by it's users in the private blockchain.

HYBRID BLOCKCHAIN

This particular one seems to be the combination of the both blockchain's that was earlier treated courtesy this home-work, they posess the two models associated in both blockchain's, meaning it constitutes the centralized, and Decentralized features.

there are massive consensus regarding in tense of the various terms, some makes a difference between the both, but for me I consider then same courtesy the features they posess. Note the hybrid blockchain is no way very open to everyone but the features it offers are very massive, security, transparency, etc.

This blockchain in all ramification is totally customized, it's members has the final say regarding the person they want to give access Courtesy their blockchain, they also decide on the transaction they intend to make public.this overtime have worked effectively as stake holders have exploited the options very well.

Let's get a clearer image on how hybrid blockchain operates, now courtesy the fact that various transactions aren't made public, intense of the verification system is very scalar and effective, any transactions that occurs here are kept safe and in a private section.

this image is collected from 101blockchains.com

There is an insurance here as this blockchain provides a concise approach that mandates immutability, this means that if transaction is written it can't be changed by any means, and in this case it's totally secured just like the private and public blockchain.

So if transactions conducted can't be changed that means it's security is pretty guaranteed, and you hav absolutely no cause for alarm, this is why hackers finds it very difficult to hack a blockchain, trust me it's nearly impossible.

ADVANTAGES OF HYBRID BLOCKCHAIN

Operates in a compact ecosystem; informations here can't be leaked as a result of the blockchain technology, it's operated courtesy a closed ecosystem. It more like have the features of the private, and public blockchain combined.

Massive protection of 51%attack; it is built to a 51%, attack this makes it difficult for hackers to gain access to the blockchain, it is totally immune.

low cost of transactions; here the transaction charged per transaction is pretty low, little few nodes are required in order to verify transactions.

Amendments of rules; rules are changed if need be, hybrid blockchain, gives it's user let's say a company the ability to amend their rules, the change will work in conjunction regarding what the blockchain is trying to initiate at that time.

DISADVANTAGES OF HYBRID BLOCKCHAIN

Provision of flexible control; hybrid blockchain's provision courtesy data sharing to me isn't ideal, on like what we have in federated blockchain.

Restrictions are inevitable; the instances provided courtesy this hybrid blockchain is divided into two different facets, some are public, while some are totally restricted.

What are the benefits of blockchain?

Here I will list out some of the top benefits of blockchain. When we talk about benefits we are talking about the good fruits that has emernated from blockchain technology.

DE-CENTRALIZED IN NATURE

Blockchain seems to be very much valuable looking at the fact that it had no central co-ordinator, that enables trust. In blockchain there is always room for sharing of data's courtesy the ecosystem here nobody seems to be incharged, in our daily activities we move from one place to another buying and selling of goods, moving from one place to another, but in blockchain nobody is saddled with the responsibility of facilitating those informations due to it's decentralized nature.

STANDARD SECURITY AND PRIVACY

In blockchain there is end to end encryption of messages that is been sent or received, this eradicates fraudlent acts, in totality data courtesy the blockchain are been stored over different networks of computers, by so doing it will be difficult for hackers to gain access. As we know conventional computers stores data conjugately with server's.

VISIBILITY AND TRACEABILITY

Visible means some that is clearly seen, blockchain doesn't have to deal with the fact that it is very speedy, it also entails the ability to trace critical transactions performed on the blockchain, I could remember one time I did a transaction with a third party where I sent 100 steem token to him initially I thought I sent 120 worth of steem.

since the transactions are kept what I did was to check and later I found out that the transaction was kept and everything was seen visibly, many thanks to blockchain technology.the transaction was visible and in general it was traceable.

IMMUTABILITY

What this means is that any transaction been carried out in the blockchain can't be deleted or changed since officially it has already been carried out, the time the transaction is been carried out is stamped, same is applicable to the date too, So the transaction there is thus permanent.

Information on the blockchain can be tracked as time goes on, the information's there will be audited prior to the legacy computer systems it might get currupt or something unwanted/unexpected might occur. So when the computer is been restored all the information needed will be tracked.

Explain Blockchain Distributed ledger.

In distributed ledger there are various database they are distributed through various networks operating in the ledger, in a geographical locations. Just as we where thought that ledger seems to be a collection of different financial accounts and distributed all round. The ledger are spotted and with multiple parties in different facets.

Those who participate have a role as they will be liable to take part and along the process obtain, a recording that looks identical courtesy the network nodes Incase if it's been edited, this role constitutes participant of each network node, to verify of the data base is excellent it will be synchronized some top block makes use of this like Bitcoin.

I will show a picture of how distributed ledger works

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Let me make it clear that distributed ledger are totally controlled by certain individual's and nodes isn't an exception here, the database is galvanized not depending on any aparatus to function, it's totally independent by each node, before a transaction can take center stage it will first be processed, when it's been concluded then then a database will be created by each node.

Voting on the database is dependent on the transactions that are been completed, all the nodes in the blockchain takes part in the voting system and is very much accurate 51%, and new transactions are been accepted in the database too, nodes are very important because they give update regarding the database after that the nodes becomes of the same version with the database itself. Nodes operates as a result of proof of work and it can be called miners too. If there is an emergency of a new transaction it will first be written in a block of that blockchain.

MERITS OF BLOCKCHAIN DISTRIBUTED LEDGER

Massive transparency and immutability;all the various entries occurs in the database, this has nothing to do with any form of third party participation, when all the assembled records are transported into the distributed ledger, they remain stagnant and can't be made away by any third party person. The records can't be scammed until the various ledgers are shared.

Eradication of third party; operating a distributed ledger in the absence of a third party isn't mandatory, it cause for so many things like total safe of cash and time too, let's check out a business of a supply chain, you will understand that business achievements can be laid down written with sensor, in the blockchain without any involvement of any third party, so third party here is totally unnecessary.

Greather Transparency; distributed ledger is presentful with a higher motive of adequate transparency, it creates an environment where all the informations stored are viewable, it's Transparency is very much commendable by so many reputable organization's around.

What Is Blockchain Double Spending and how Bitcoin handles this problem?

Double spending is basically concerned about the existence of decentralized Bitcoin, it is the most popular cryptocurrency around today, Bitcoin is Decentralized and has no Central agency that can verify it, it's basically spend once.

Bitcoin itself has its own method as a result of different transactions it operates and it's logs centrally called blockchain. Blockchain confirms the transactions and keep r cords on it so as to prevent problems of double spending.

Just as the name implies double spending actually means that a token, let's say the same unit of Bitcoin can be spent twice. It's a vital problem within the crypto space that needs urgent attention it not cryptocurrency will loose it's value simply because there will be lots of scan, and duplicated transactions all round, blockchain seems to be the solution of this double spending as it operates on open ledger associated with cryptographic allogrithm.

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From the image I have uploaded I will give a clear example of how this works, the view is totally clear Bob is trying to give Lisa some cash 20 million in Exchange for a book, if Lisa officially receives the cash physically there is absolutely zero means at which Bob can make use of this cash again, because Lisa is now in posession of the cash.

Now let's say the cash is now with Lisa, the exchange model is in digital form, as Bob have given the cash out, Lisa can decide to issue out the copy of the cash to another person, all their hope now is that the cash have been received without any form of authentication and the books will then be given to Bob.

since the cash have been received, this now is refered to as fraud double spending the cash was sent same place more than one person and by so doing goods was gotten from different people.

I think so resolve the problem, a central authority needs to be employed to monitor all transactions.

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Let's say the banking sector, they are central because they maintain a book of records, where transactions are monitored on how they enter and leave your bank account, that's why you can easily print your statement of accounts. If at all it was a banking sector Bob could have sent the cash and he will be debited. And Lisa ledger account will then be credited a central authority needs to come in here to solve the problems.

HOW BITCOIN HANDLES THE PROBLEM

Bitcoin have moved forward in implementing what is called a confirmation method and and by so doing ledgers are totally maintained, blockchain I mean. Bitcoin blockchain since it's inception in 2009 have maintained a chronological order that keeps the timeframe at which your transactions is been performed at stamp still.

We know this in every 10 mins, so many transactions are been added into a ledger, various nodes if not all the nodes that operates on the Bitcoin blockchain is added to the ledger. So there will be no means of double spending.

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HOW BITCOIN PREVENT'S DOUBLE SPENDING

Let's me give an instance where you have 2 BTC and you want to spend it twice, the transaction was made to the third party the 2 BTC, and again you click and send the same number of BTC to another third party. If this is been done you will find out that the both transactions will hug into a pool of unconfirmed transactions.

You will understand that it will be only one transaction that will be verified out of the both sent, miners are responsible for the verification here, the miners will tag the second transaction as invalid so it will be pulled out from the network.

If the transaction is sent in unism what will happen is that the transaction will be pulled out simultaneously from the pool, then the transaction will be judged courtesy it's confirmation courtesy the network and it will be included in the blockchain the second one will be deleted, that means it doesn't matter how fast transactions come first it have to pass through processes.

Practical + Theory, Visit Blockchain Demo and check section Blockchain, then explain in detail how Blocks Hashes Work in Blockchain, what will happen when any middle of the block gets changed, try to give screenshot for each possible details

I will imput various blocks in the SHA-256, this means secured hash allogrithm it was created by Anders Brownworth, after I'm done exploring this you will see the blocks that are valid and the ones that are not valid.

Exploring the blockchain Demo using the simulator SHA-256 I'd I item is imputed in the public space then you will get your hash.lets explore further examples.

I entered Obi is a boy using the simulator, and this was my output below is the hash result
86643b7eeec413fdac201583d2978829cbc0b86fb51c3aae2450543aa6253b69

I used a Capital letter from the one I have hashes I will try using a small letter so I could see the difference it will bring. If there is a change courtesy the block I suggest the hash too will get a slight change too, the hash length Will be same yes.now I will use a small letter let's see

Now I have changed the first letter from O to small letter o, now the hash has changed but the hash length remains Constance. The both hashes are regarded as invalid hash because it doesn't start with zeros from the beginning.

3aa8214fa705e046bacbcc436ee02a35c1d19df535ce5c0848f6fbe7624b9bb8

Here I will be using a longer writting to check if the hash output will change or if it will still be of the Same length
a62538a25c5a1cdfa99607701a261aada05b37349e9011018b5b44c65e42b722

Now let's explore the demo and check Different section of the blockchain to see how we are going to add valid blocks to the blockchain

When I logged in-to the demo account I clicked on Blockchain and the blocks came up I proceeded in minnig it.

I tried minnig a valid block as you can see it starts with Zero, that means it is a valid block, it will be added into the blockchain

Here is the hash functions, it's invalid because it didn't start with zeros

0000f727854b50bb95c054b39c1fe5c92e5ebcfa4bcb5dc279f56aa96a365e5a

This was the result of my hash imput, it was invalid because it didn't start with Zeros, I will keep trying hopefully I get a valid block that will be added to the blockchain.

4d310f8e08d585547e41eb59e3c690fa6d525734722249864fd373342b4d1db3

will try twicking the nonce let us see the possible outcome that will emernated and I will explore what will happen if middle of the block is eventually changed.

Here I got a valid hash, it's valid because the hash functions began with zeros
0000b357811c29ca95fd08a660f8b0e088f9e541b5b55ca96f9a060782e483be

What will happen if blocks get changed?

If middle of the block get changed it will surely have an effect, but one thing I'm very sure is that the hash imput will be of the same length, shall let's check out what the changes will look like.

The blocks goes from 1,2,3,4,5, and so on, so if one block is been changed,. The hash functions won't be valid, hash function
2037284a898292f4fe392d02c8077d46f3d5acd480ec5896cb1beec66aea8fca.

What Is Race Attack in blockchain? OR What Is Finney Attack in blockchain? OR What Is Vector76 Attack in blockchain

Since we are allowed to choose one I will go for race attack in block-chain, this attack mandates receiver of a transaction to validate and confirm transactions or payment that is been done illegally. The one striking commonly called the attacker issues out transaction that isn't confirmed by so doing there will be a discourse in the network.

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The person that should have received the token been sent, courtesy the fact that he wants to get paid, if the fraud attacker have an overview on the victims node then he is bound to been effective, the transaction will go straight to the miners.

From the image uploaded you will find out that the buyer sent a token to two different person's but it's only one person that confirmed the transaction, but the second seller actually saw the false transactions.

Limitations/disadvantages of Blockchain.

Anything that has advantage, also have Disadvantages too here I will explore then one after the other.

Excess use of power supply; to run a blockchain you need lots of power supply in order to achieve such faith, if you reside at a place where power supply is low then you might be forced to spend more on buying petrol to fuel the device you will make use of while running your blockchain. Keeping a legitimate ledger is the cause of this because it creates new nodes all the time.

Excess cost; As we all know we have a figure associated to the average cost of Bitcoin transaction's this is ranging at the figure at about $75-160, it's totally been converted courtesy energy consumption it's totally on the high side.

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Incensitive regulatory laid down; monitory affairs are been created by central authority, some countries are finding it difficult to accept Bitcoin as a means of payment, so this has given some central authority the mandate to regulate how cryptocurrency exchanges are been carried out in some countries they are been banned. Like in Nigeria crypto Exchanges are banned.

Conclusion(Overall understanding of Blockchain.)

• Block-chain guarantees investors the opportunity to store their token, in a place where it is totally save, without the options of been reliable to someone else, blockchain is totally secured, and it can't operate without blocks, chains, and nodes, this are what keeps blockchain alive

• Blockchain is designed to work well and favour everybody as it operates on a central ledger, remember in our banking system the central ledger keeps record of your monitory transactions that's why you can easily go to the bank and print statement of accounts.

• For a particular transaction to be tagged valid it has to go through some processes in the blockchain, if you carry out transactions in the blockchain it is added very quick to avoid unnecessary delays of purchases, you can't afford to wait for days for your transaction to come to lime light

• The way I see Crypto been designated you will understand that blockchain is shaped up in a Decentralized manner, it's very much secured and it's very difficult for transactions to be hacked after it has officially been included in a blockchain

Cc;@stream4u