How does public blockchain technology work?

The blockchain was initially introduced with Bitcoin by Satoshi Nakamoto, a person or group of people who remains anonymous. Although there is no …

Blockchain technology, the base layer that works as the database where crypto transactions live, exists in the realm of DLTs, or distributed ledger technology. Although a blockchain is always a DLT, a DLT may not be a blockchain.

The difference between DLTs and blockchain is based on permissions and roles. While in the first system there can be multiple roles assigned to different users, such as administrator, operator and so on, in a blockchain all users have equal permissions and rights.

Explaining blockchain technology

Blockchain technology is a cryptographically secured distributed ledger run by crypto incentives that allows network nodes to transact in a peer to peer (P2P) decentralised fashion, and to reach consensus on the state of every transaction of the global network chain. Implementing disintermediation can reduce failures inherent to centralised platforms, such as lack of transparency, corruption, coercion, censorship, excessive market power and transaction costs.

The blockchain was initially introduced with Bitcoin by Satoshi Nakamoto, a person or group of people who remains anonymous. Although there is no reference to its name on the original Bitcoin whitepaper, the blockchain represents the database where original Bitcoin transactions live.

When practitioners and scholars refer to blockchain in general, they refer to an open governance where everyone can participate in the P2P network and validate transitions, and to the data infrastructure, which is composed of a chain of blocks in a distributed ledger nature (distributed database). In terms of infrastructure, all cryptos present a blockchain infrastructure, like the original Nakamoto idealisation. However in terms of governance openness, post-Bitcoin blockchain cryptos tend to present other degrees of openness. These no longer represent the initial conception of Nakamoto’s Blockchain.

Public blockchain components

A public blockchain is composed of five main technologies:

  1. A public distributed ledger, or database, where information is written through posting transactions. Any user can write to this database by sending or receiving a transaction. Addresses are pseudo-anonymous and all recorded information is linked in multiple blocks, all time-stamped by the creator.
  2. PGP encryption, or pretty-good-privacy, that creates private-public addresses. This technology allows any user to prove they are the owner of a piece of data, without showing their master key (or password). In essence we can show another user we are the owners of an address (an account) without showing our credentials. It gives users much needed privacy to transact independently digitally.
  3. A cryptocurrency, or token, that is associated to all transactions that occur on any given blockchain. Tokens can grant its owners different properties, such as the right to write on that blockchain, voting-rights, income-rights and so on. A token can be a representation of a good, a currency, a collectible, or a digital representation of any asset. Cryptocurrencies are essential as they give an incentive for users to keep the network secure.
  4. Distributed consensus, usually associated to proof-of-work (PoW), or the technology that requires any user who wishes to validate transactions and to keep the network secure, to waste energy by resolving complex computational problems. The incentive is the cryptocurrency reward validators (or miners) receive for keeping the blockchain secure. The idea is that by requesting blockchain validators to keep wasting energy in order to find the solution to the computational problem at hand, usually called hash, we maintain the security of the network by making it hardly impossible for anyone to have more than 51% of the voting power. Thus, consensus remains decentralised.
  5. A permissionless P2P network, in order for users to own their cryptocurrency and not depend on third-parties (like banking infrastructure of traditional payment channels). It allows them to transact freely with one another. P2P is based on the idea users can be the owners of their data, as it gets stored publicly but can only be accessed by the owner who possesses the right key-pair.
DLT Blockchain
Permissionless P2P No Yes
Distributed database Yes Yes
PGP Encryption Yes Yes
Cryptocurrency No Yes
Distributed consensus Yes Yes

Conclusion

Blockchain technology can help build a better web 4.0, however, cryptocurrency enthusiasts should focus on permissionless and public technology, rather than private-blockchain use-cases, simply because the future is being built on top of a permissionless technology.

If we do not make an effort to start promoting increased value-sharing between companies and users, we might be unable to find solutions to many of the data and money ownership issues we have to deal with nowadays.

The post How does public blockchain technology work? appeared first on Coin Rivet.

Related Posts:

  • No Related Posts

Hedera Hashgraph to Launch Phase II of Community Testing Program

Hedera To Publish Three Open Source Libraries as Part of Phase II, Joins Hyperledger. DALLAS, May 9, 2019 /PRNewswire/ — Hedera Hashgraph, …

Over 200 Million HBAR Coins Will be Made Available to Developers and Users Testing the Hedera Network

Hedera To Publish Three Open Source Libraries as Part of Phase II, Joins Hyperledger

DALLAS, May 9, 2019 /PRNewswire/ — Hedera Hashgraph, an enterprise-grade public ledger designed to have highly diversified governance and the most distributed consensus at scale, has announced that Phase II of the Community Testing Program for the Hedera Platform will launch on May 13th, 2019. The second phase of the program will allow developers and users to test different network capabilities prior to the mainnet open access. The company further announced that in conjunction with Phase II, it will open source both iOS and Android versions of the Hedera Wallet, as well as the Hedera Browser Extension, and WordPress Plug-In. These applications will be available in this community testing phase to test peer-to-peer micropayments and inspire developers to create use cases for the services on the Hedera network.

Hedera Hashgraph (PRNewsfoto/Hedera)Hedera Hashgraph (PRNewsfoto/Hedera)
Hedera Hashgraph (PRNewsfoto/Hedera)

Mance Harmon, CEO and Co-founder of Hedera Hashgraph, said, “Community testing is invaluable to the success of the Hedera network. Phase II of our Community Testing Program marks another milestone for us. Early on, we saw the potential for hashgraph to make peer-to-peer microtransactions a reality, processing many thousands of transactions per second, making it the ideal distributed ledger to reshape online services. Phase I of this program concluded earlier this year, and we are excited to build on this progress.”

Starting on May 13th, users will have the opportunity to test the Hedera network’s capability to validate peer-to-peer micropayments, support third-party development of payment services, and compute smart contracts. Hedera will make over 200 million HBAR coins available to those who test the network, providing an opportunity for both the hashgraph developer community and individual users to earn coins for their contributions. In addition, any website or application can display their public Hedera account ID as a QR code to receive donations in HBAR.

Hedera Hashgraph today also announced it is joining Hyperledger, one of the largest enterprise open source communities focused on the advancement of cross-sector distributed ledger technologies. As part of its new Hyperledger membership, Hedera will make available open source samples that demonstrate ways of using Hedera with Hyperledger, and plans topublish an open source Hyperledger library.

“As we work to open the Hedera network to everyone, we want feedback and contribution from our incredible developer community, so that we can disrupt the tech world together. Enabling peer-to-peer micropayments for use by developers throughout the world will help lead us to a future where personal data is no longer exchanged for online services and where monthly subscriptions are no longer the norm. Enormous industries are on the brink of change,” concluded Harmon.

To take part in phase II of the Community Testing Program for the Hedera network, starting on May 13th, create a Hedera Profile at portal.hedera.com. All users must verify their identity to participate in the program and be eligible for rewards.

For more information, visit www.hedera.com.

About Hedera

Hedera Hashgraph is a public distributed ledger for building decentralized applications. Developers can build secure, fair, blazing-fast decentralized applications on top of Hedera. For more information, visit https://www.hedera.com, or follow us on Twitter at @hashgraph, Telegram at t.me/hashgraph, or Discord at https://www.hedera.com/discord. The Hedera whitepaper can be found at https://www.hedera.com/whitepaper.

For Media Inquiries

Zenobia Godschalk

E: pr@hashgraph.com

T: 1.833.794.7537 x 717

CisionCision
Cision

View original content to download multimedia:http://www.prnewswire.com/news-releases/hedera-hashgraph-to-launch-phase-ii-of-community-testing-program-300847606.html

Related Posts:

  • No Related Posts

The Cross Border Payments Race Is Heating Up

The race is heating up among competitors in the cross border payments sector of cryptocurrencies. At the forefront has always been Ripple Labs, …

Cross border payments represent one of the most self-evident use cases of cryptocurrencies. Digital currencies move across borders faster than traditional payment pathways, with reduced friction points and no need for an intermediary.

As central and commercial banks continue to trial the application of blockchain-based cross border payments, it’s not yet clear which players are in the best position to win. Here are some of the runners at the front of the race:


Bank Of Canada And Monetary Authority Of Singapore Conclude Trial

Based on Corda at the Canadian side and JPMorgan’s Quorum on the Singaporean side, the central banks of Canada and Singapore concluded a trial of distributed ledger technology (DLT)-based cross border payments early this month.

At the World Economic Forum earlier this year, it was revealed that a number of central banks had considered the possibility of using DLT to enhance “banking and payments system efficiency, payments security and resilience, financial inclusion and more.” However, according to the report, their results were mixed.


Giants Competing For A Slice Of The Potential Pie

The race is heating up among competitors in the cross border payments sector of cryptocurrencies. At the forefront has always been Ripple Labs, which boasts over two hundred banks and payment companies using their RippleNet platform. A smaller number use Ripple’s xRapid network, which executes payments using XRP.

But Ripple is beginning to see challengers in the race. Jamie Dimon, the long-standing CEO of JPMorgan and a notorious cryptocurrency cynic, announced in February the creation of the JPM Coin, a stablecoin pegged to the US dollar, designed for use among its wholesale banking customers.

Emphatically true. It will only be available privately. https://t.co/jX63fOzHBz

— Mati Greenspan (@MatiGreenspan) February 14, 2019

JPM Coin is based on a permissioned blockchain, a closed network which is anathema to many in the cryptocurrency community. For JPMorgan, this closed network is a strength rather than a weakness.

Being pegged to the dollar, its crypto would also avoid exposure to the wild price fluctuations affecting XRP and other digital currencies. However, with four-second transaction speeds, the fluctuating value ranks low on the risk of Ripple’s worries.


IBM’s World Wire And The ING-R3 Partnership

In March, IBM announced the launch of World Wire, a payments platform for use in the banking sector. It has already secured Letters of Intent from six banks. The platform will use the Stellar blockchain to secure the flow of funds, with banks using native digital currencies for internal transfers and Stellar’s XLM as the medium for inter-bank transactions.

In January, ING announced a partnership with R3, giving the giant Dutch bank access to a wide range of applications on the company’s Corda network.

One such application is Corda’s Universal Settler Application, which is fueled by XRP. Should ING activate cross border facilities through that application, it will add another arrow to Ripple’s quiver, despite R3 and Ripple Labs ostensibly being competitors.


Coinbase’s Green Light For Ripple

After an anxious wait, in February Coinbase finally gave the Ripple Army what it had been demanding: listing on the exchange. Since then, the American giant has launched fee-free internal transfers between Coinbase users for XRP and Circle’s USDC.

Coinbase’s decision to remove fees from XRP and USDC transactions may prove a boon to Ripple Labs and the exchange. Given their suitability for smaller transaction amounts, the most likely users of fee-free XRP transfers on Coinbase are those sending remittances to countries like the Philippines. That could mean an expanded global user base for Coinbase and XRP becoming, as its army would say, “the standard.”


Cross Border Payments Are Becoming Easier, But Remain Centralized

Cross border payments are becoming easier and cheaper with cryptocurrencies and it is only a matter of time before they become standard practice.

The relatively centralized XRP has long been a lightning rod in the crypto community. But Ripple Labs has got the jump on Stellar and other cryptocurrencies in terms of cross border payments.

Given that Ripple’s leading competition is now with stablecoins and bank-issued assets on permissioned blockchains, the company still has a chance to demonstrate some of the advantages of decentralization through its payments networks. If Ripple Labs does bring crypto into the realm of everyday use, Brad Garlinghouse may find his way back into the good graces of the crypto community.

Related Posts:

  • No Related Posts

Hedera Promises Real Time Smart Contract Data with Chainlink Partnership

Speedy blockchain Hedera Hashgraph and Chainlink have jointly announced they will collaborate to integrate Chainlink’s decentralized oracle …

Speedy blockchain Hedera Hashgraph and Chainlink have jointly announced they will collaborate to integrate Chainlink’s decentralized oracle network with Hedera’s enterprise level distributed ledger technology (DLT). According to Hedera, this will allow developers writing Hedera-based smart contracts to access real-world data, events and payment information.

Chainlink is a decentralized oracle network that enables smart contracts to securely access off-chain data feeds, web APIs, and traditional bank payments.

Hedera is one of a handful of blockchain companies seeking to address pressing issues with most popular iterations of distributed ledger technology. Namely, Hedera seeks to provide the performance demanded by enterprises today as well as satisfying future demands with super fast data access and transaction speeds. All while providing a secure and stable ecosystem.

Hedera says it stands in a unique position to offer a stable smart contract platform integral for the future of digital contracts.

Today, the DLT market struggles with preventing hard-forks which split the state of an application by creating a competing platform and cryptocurrency with the client software running on both.

Enterprise managers don’t want to deal with this as they prefer consistency and mitigated risk.

Hedera seeks to provide the legal and technical controls to prevent unauthorized hard-forks and has made a commitment to the market that Hedera will have one platform and one cryptocurrency and, of course, will never fork.

Jordan Fried, SVP of Global Business Development for Hedera, said they are quickly approaching “open access” where developers may create applications on the (beta) mainnet.

“The Chainlink integration, alongside our full support for Solidity, makes it even more compelling for applications to migrate from other Solidity based smart-contract platforms to Hedera for improved performance, security, stability and much more. Smart contracts have already started to change the world, and how organizations and individuals do business, and we see Chainlink’s oracle network as a key piece of infrastructure to improve smart contract capabilities even further.”


Related Posts:

  • No Related Posts

VISA to Hire Senior Software Engineer With Bitcoin, Ripple, R3 and Ethereum Blockchain Experience

Visa, one of the largest financial companies in the world, is currently hiring a software engineer with cryptocurrency and blockchain knowledge.
VISA to Hire Senior Software Engineer With Bitcoin, Ripple, R3 and Ethereum Blockchain ExperienceVISA to Hire Senior Software Engineer With Bitcoin, Ripple, R3 and Ethereum Blockchain Experience

Visa, one of the largest financial companies in the world, is currently hiring a software engineer with cryptocurrency and blockchain knowledge. The new job position has been published by VISA on its USA page.

Visa Hires New Blockchain Expert

Companies around the world are starting to work with distributed ledger technology (DLT) and cryptocurrencies. VISA is moving forward by hiring a new Senior Software Engineer with crypto and blockchain knowledge.

As per the job description, VISA is working on blockchain technology and it wants to add new talents to their team in Foster City, CA. The selected individual will be building POC’s leveraging internal infrastructure and data, and partnering with Product on implementation strategy.

They are also interested in an expert developer with experience in the cryptocurrency and blockchain market.

On the mater, they wrote:

“We’re seeking a strong developer experienced with Ethereum and blockchain architecture to be a part of a team tasked with building distributed applications. Our ideal candidate has built and released distributed applications, has worked with the Ripple, R3, Ethereum and/or Bitcoin blockchain and has experience with Solidity.”

The main responsibilities for this engineer will be to lead several blockchain initiatives, direct client exposure, write code, work on blockchain proof of concepts, and monitor blockchain technologies as well. Interestingly, the expert will also have to maintain the firm’s relationship with the Hyperledger initiative.

VISA is hiring

Sr. Software Engineer

Our ideal candidate has built and released distributed

applications, has worked with the Ripple, R3, Ethereum and/or Bitcoin blockchain, and has experience with Solidity,https://t.co/ioggnNk37Opic.twitter.com/TodnQeZAu7

— 𝗕𝗮𝗻𝗸 𝑿𝑹𝑷 (@BankXRP) May 9, 2019

VISA and other companies in the traditional financial world are trying to implement different blockchain solutions to improve their services and products and be able to compete with new startups and companies that have entered the space. As digital currencies and distributed ledger technology (DLT) solutions expanded, traditional financial companies must now improve their systems as well.

Related Posts:

  • No Related Posts