What is Blockchain
Before introducing blockchain technology, many attempts to generate digital money have been made but failed.
The main problem is trust. What makes us think that if someone invents a new currency, they won't pay themselves a million dollars or steal someone else’s?
Bitcoin was created to address this problem by utilizing a blockchain, a type of database. Most regular databases have someone who changes the data, but the blockchain is unique as nobody controls it except the individuals who use it.
With this in mind, let us go into more detail on blockchain technology and how it works.
What Is Blockchain Technology?
Blockchain technology saves transactional records in a way that is impossible to hack. It's a digital ledger of duplicated transactions spread across a network. Each transaction is signed with the owner's digital signature, verifying the transaction and guarding against tampering. As a result, the information contained in digital data is highly safe.
Why Is Blockchain Technology Important?
Every business runs on information; the faster and more accurate it is received, the better. Blockchain is excellent for delivering that information because it gives immediate, shareable, and transparent information kept on an immutable ledger that only the allowed network users can view.
It has also provided a means for people to earn money through digital collectibles. This new asset class is held on the blockchain network. Many people mint these and sell them without the fear of duplication because, with the help of blockchain, it is a unique digital asset with only one sole owner.
For example, this technology allowed our project to exist, changing how people make money and connect with other people. At Zoop, we offer a 3D trading card game platform that lets users collect their favorite celebrities by collecting digital cards and playing in-app games. These cards will accomplish card set tasks, unlock reward packs and earn points.
A blockchain can also track orders, payments, accounts, and much more. As a result, you can see all facts of any transaction, providing you with more confidence, additional efficiencies, and opportunities.
How Does Blockchain Work?
As each transaction occurs, it is stored as a block of data. The data block can store any information.
Each block is connected, forming a data chain as an asset moves from one location to another or changes ownership. The blocks confirm the exact time of any transactions, and it connects to prevent any block from being changed.
Transactions are then linked together in an indestructible chain known as the blockchain. Each additional block enhances the verification of the previous block and the entire network.
As a result, this enables the blockchain to detect unauthorized access to the protected asset quickly. Such a mechanism eliminates the risk of tampering with assets and creates a ledger of trusted transactions.
Types of Blockchain Networks
There are four types of blockchain, and they include:
A private blockchain is a decentralized peer-to-peer network. Nevertheless, the network is governed by a single entity that can give and take permission from specific users. It is also responsible for the consensus protocol and for keeping the shared ledger.
Ultimately, it can boost the confidence levels within the network. Therefore, this type of blockchain is suitable for private businesses, and it can operate behind a corporate firewall.
Public blockchains are any network anyone can join, such as bitcoin and other cryptocurrencies. These cryptocurrencies helped popularize distributed ledger technology (DLT). Public blockchains also help solve certain problems, like security weaknesses and centralization.
Instead of being stored in a single location, data is spread throughout a peer-to-peer network with distributed ledger technology. A consensus algorithm like proof of stake and proof of work is used for verifying the authenticity of the information.
Permissioned blockchains are private blockchains that allow access to only approved individuals. Organizations usually set up these types of blockchains to gain the best of both worlds, and it provides a better structure when determining who can join the network and in which transactions.
Consortium blockchains are similar to permissioned blockchains because they both have public and private components. However, the only difference is that many organizations manage one consortium blockchain network. Therefore, it is suitable for various organizations where all participants need to be permissioned and share responsibility for the blockchain.
One of the most important inventions of this generation is blockchain technology. It has a high level of security and can protect sensitive data from online transactions. Additionally, It has fast and straightforward transaction methods, whereas others take several days. Finally, the technology is at the core of Zoop’s platform and allows our users to be part of the next generation of digital trading card games.