Hire Top 1% Blockchain Developers & Programmers in 24 hrs

Blockchain is decentralized, distributed, and public ledger that contains multiple transactions which are accessible across a network and every time when a new transaction takes place in the chain, the record is added to every peer's ledger.

• Distributed Digitalized Ledger - Each participant of Blockchain can access the complete database along with the changes made to it. It is not allowed for a single participant to regulate the information. Every participant can automatically predict the outcome of an event without the need for any intermediary. The Blockchain database is decentralized, i.e., distributed among multiple participants hence known as Distributed Ledger Technology (DLT).

• Computational Logic - Transactions in Blockchain are programmed with computational logic. Hence, participants can set up the algorithms that will automatically invoke the transactions between the nodes.

• Immutability of Records - Once the transaction is inserted in the database and the accounts are updated in a record, that record cannot be changed because each record is connected to the previously come records. Several data structures and algorithms are used to ensure the immutability of records, chronological ordering, and availability to all other networking nodes.

• Node-to-Node Transmission - In Blockchain, the transmission of information takes place straight-forwardly between peers instead of a centralized node. Each user/node stores the information and forwards it to all other participants in the network.
• Transparency along with Pseudonymity - A transaction and its information are visible and accessible to anyone within the blockchain system. The transaction takes place between blockchain addresses and each node has a unique 30 plus alpha-numeric characters address associated with it. Participants can choose to be anonymous or provide their identity to other participants in the network.

Encryption is a way of securing data that encodes the data with some information before broadcasting it over a network. The encrypted information is converted into ciphertext and only the authorized peers are allowed to decipher the information and receive the plain text. Blockchain technology is based on decentralization, cryptography, and consensus. Blockchain networks are classified based on -

• Eligibility to participate - 

• • Public Blockchains - Public Blockchains allow any person to join and validate transactions.

• Private Blockchains - Private Blockchains are limited to grouped networking and only allow known members to access and maintain the transaction ledger.

• Decentralization and Distribution - 

• Permissioned Blockchains - Permissioned Blockchains have restrictions and guarantees access only to a limited number of users who have verified their identity.

• Permissionless Blockchains - Permissionless Blockchains have no restrictions on users’ access.

A Blockchain ledger is a computer file that keeps a permanent record of all the transactions that have been acted upon by two parties in a distributed network. There are three types of ledgers in Blockchain technology, namely, 

• Distributed Network

In a distributed network, the process is shared with all the peers in the network but the decision may be centralized or decentralized.

• Centralized Network

In a centralized network, one entity governs the decision.

• Decentralized Network

In a decentralized network, the decision is not made just by one entity rather the control is shared among several independent entities.

Although, there is no restriction to keep a record of specific type in Blockchain, following are the records kept in the Blockchain - 

• Medical Transactions Record.
• Business Transactions Record.
• Identity Management Record.
• Record of Management Activities
• Documentation

The Blockchain ecosystem is built upon four components - 

• Node application

• Shared ledger

• Consensus algorithm

• Virtual Machine

• Node application - Each node in the network has to install a computer application specific to the ecosystem in which they have to participate. For example, if the ecosystem is Bitcoin, each computer should run the Bitcoin wallet application.
• Shared ledger - A shared or distributed ledger is a data structure handled inside the node application. When you run a node application, you can view its blockchain contents (its respective shared ledger) for that particular ecosystem. For example, while running a Bitcoin client, you can choose to participate in the Bitcoin ecosystem according to the predefined rules in the Blockchain ecosystem.
• Consensus algorithm - The consensus algorithm sets the rules for how the Blockchain ecosystem will come to a single view of the ledger. For example, Bitcoin comes to the consensus of the ledger in a few minutes.
• Virtual Machine - A virtual machine is an abstract logical component designed by a computer program operating with pre-defined instructions in a specific language. For example, when you press a button on the screen, a specific event or functionality is triggered and shows you the specific information irrespective of its process.

A Coinbase transaction is the first transaction that takes place in a block. It is a special type of transaction which can only be created by a miner. It is no inout transaction and collects the block rewards for the miners.  When a miner collects any other transaction fees, it is sent to the coinbase transaction.

Merkle trees are mathematical data structures comprised of hash blocks of different types of data, also referred to as binary hash trees.  These hash trees encodes the blockchain information in a secure and efficient way. Merkle trees enables very fast verification of transaction data and also provides rapid data transfer from one computer node to another in the blockchain network.

Proof-of-Work (PoW) algorithm confirms the transaction and creates a new block in the Blockchain network. In the PoW algorithm, miners compete with each other to complete their transactions on the network. This is called Mining. The first miner who solves the blocks problems earns a reward. 

In Proof-of-Stake (PoS) algorithm, a set of nodes stake their cryptocurrencies for the transaction validation. The creator of a new block is selected in a deterministic manner depending on its wealth. PoS doesn’t give any block reward, hence miners take the transaction fees only. Proof-of-Stake can be more cost-effective as compared to Proof-of-Work.

If you are trying to Hire a Blockchain developer. Here is the Blockchain Developer Job Description that you can use in your hiring.