What Are Blockchains? (Block Chains)
Blockchains, originally called block chains are distributed databases which are used to maintain continuously growing lists of records which are called blocks. They are used alot now by crytocurrency wallets to protect their customers. Trading with cryptocurrency has become a very lucrative business and companies such as USI-TECH have created schemes to take advantage of this cryptocurrency phenomenom and so they also rely on the security blockchains bring.
WHAT IS A DISTRIBUTED DATA BASE?
A distributed database is a database where the storage devices are not all attached to one common processor. The data may be stored in multiple computers located in the same physical location; or it may be dispersed over a network of interconnected computers. A distributed database system consists of loosely coupled sites that share no physical components whereas the processors of parallel systems are tightly coupled and constitute a single database system.
Collections of data such as that in a database can be distributed across multiple physical locations. A distributed database can reside in many places such as network servers, decentralised independent computers, on the internet, on corporate intranets / extranets, or on any other organisation’s network. Because a distributed database stores data across multiple computers, the performance at end-user worksites is improved. This is because transactions can be processed on many machines, instead of being limited to only one.
WHAT IS A BLOCK?
A block contains a timestamp and a link to a previous block. Trusted timestamping is the process of securely keeping track of the creation and modification time of a document. Security here means that no one - not even the owner of the document - can change it once it has been recorded provided that the timestamper's integrity is never compromised.?
HOW IS ARE BLOCKCHAINS MANAGED?
Blockchains are typically managed by a peer to peer network who collectively adhere to a protocol for validating new blocks. By design, blockchains are inherently resistant to modification of the data. Once recorded, the data in any given block cannot be altered retroactively without the alteration of all subsequent blocks and the collusion of the network.
Functionally, a blockchain serves as an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way. The ledger itself can also be programmed to trigger transactions automatically.
Blockchains are secure by design secure and are an example of a distributed computing system with high Byzantine fault tolerance.
WHAT IS BYZANTINE FAULT TOLERANCE (BFT)?
In fault -tolerant computer systems and particularly in distributing computer systems, Byzantine fault tolerance (BFT) is the characteristic of a system that tolerates the class of failures known as “the Byzantine Generals’ problem”, which is a generalized version of the “Two generals Problem” for which there is an insolvability proof. The phrases interactive consistency or source congruency have been used to refer to Byzantine fault tolerance, particularly among the members of some early implementation teams. It is also referred to as error avalanche, Byzantine agreement problem, Byzantine generals problem and Byzantine failure.
Byzantine failures are considered the most general and most difficult class of failures among the failure modes. The so-called fail-stop failure mode occupies the simplest end of the spectrum. Whereas fail-stop failure model simply means that the only way to fail is a node crash, detected by other nodes, Byzantine failures imply no restrictions, which means that the failed node can generate arbitrary data, pretending to be a correct one, which makes fault tolerance difficult.
WHY ARE BLOCKCHAINS SUITABLE FOR RECORDING DATA?
The fact that decentralised consensus has been achieved with blockchains makes them suitable for the recording of events such as medical records, and other records management activities, identity management, transaction processing and documenting provenance.
And therefore, they are suitable to maintain the records of the transfer of bitcoin and other cryptocurrencies from one person to another.
BLOCKCHAINS SERVE AS THE PUBLIC LEDGER FOR ALL BITCOIN TRANSACTIONS
The first blockchain was conceptualised by a group of inventers who called themselves Satoshi Nakamoto. It was first used in 2008 and was implemented the following year as a core component of the digital currency bitcoin, where it serves as the public ledger for all peer to peer transactions. The invention of the blockchain for bitcoin made it the first digital currency to solve the double spending problem, without the use of a trusted authority or central server. The bitcoin design has been the inspiration for other applications, and is used now for all crypto-currencies which have been invented.
Bitcoin trading has become a global phenomenum - one company which does automated trading which brings a return of 1% per trading day.
WHAT IS DOUBLE SPENDING?
Double-spending is an error in a digital cash scheme in which the same single digital token is spent twice or above. This was possible because a digital token consists of a digital file that could be duplicated or falsified. Like counterfeit money this may cause inflation and devalue the currency, and lose the trust from people and decrease the willingness of people to use the currency. It could also lead to serious fraud. The development of blockchains eliminated this risk and is a contributing element to the ongoing acceptance and success of crypto currencies.
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