What is blockchain and how blockchain can be used In businesses

Article about What is blockchain and how blockchain can be used In businesses

Mar 2, 2021

If there is any Innovative technology having its sunshine each and every day, then obviously it would be Blockchain. The advanced technology is not at all a newbie technology, but still, it is conquering many businesses and industries towards its original.

Nowadays, The major evolution of blockchain technology is being a revolution. Due to its bright fortune, many numbers of blockchain products are presented by industry experts and tech enthusiasts each day.

However, many people may ask and clarify their questions about blockchain technology on forums or in comments. To Straighten all your doubts here we have defined some of the essential Blockchain Frequently Asked Questions - FAQ.

1. What Is Blockchain?

Blockchain is a public ledger or a distributed database of all cryptocurrency transactions. Blockchain is an open-source technology, Data or information is immutable and anyone can access the details at any time. As Blockchain tech is a distributed ledger, there will be no control or central authority of records stored.

Anyone in the blockchain network can add the data & cannot be deleted/altered further. Actually, the blockchain stores the information in terms of blocks, and those blocks are instantly linked together like a chain and will be encrypted for high security. To validate and verify the transaction here Blockchain uses Proof of Work Mechanism.

Read More about What is Blockchain Application Development!!

2. How Blockchain Can Be Used In Businesses?

By eliminating the middleman access, Blockchain allows the secure sharing of business processes like business activities, maintain records and contracts between firms & investors, partners in an encrypted manner. Blockchain technology Uses the cryptography principle to store information which is impossible to attack, and duplicate.

Each and every Transaction will be done on multiple computers in a chain, hence the information or records are very difficult to alter.

3. What Kind of Data Can Blockchain Store?

Blockchain is a Distributed database that maintains the details of each transaction in a series of blocks and those transactions will be added to the ledger in chronological order. The Stored transaction details in a block called genesis block.

Normally a block consists of

previous hash(I.e hash of the previous block ),

data(I.e sender address,receiver address,transaction amount);

hash(I.e like a unique digital fingerprint)

nonce(I.e Random value)

4. What are the Types of Blockchain?

Public Blockchain

Public Blockchain is a decentralized Open Source platform where everyone who has an internet connection can become a part of the blockchain and can access current records & past Information and verify each transaction. The purpose of a public blockchain is for bitcoin mining & cryptocurrency exchanging.

Example: Bitcoin, Ethereum

Private Blockchain

Private Blockchain is a centralized platform with some rules, restrictions, and permissions to connect the blockchain network. These Blockchains are usually used within an enterprise, industry, and organization. The purpose of private Blockchain is voting, digital identity, supply-chain management, asset ownership, etc.

Example: Hyperledger, Corda

Hybrid Blockchain

Hybrid Blockchain is a combination of both public blockchain & private blockchain. This Hybrid Blockchain provides businesses the flexibility to select what data or information they want to create public & what Info to keep private.


5. Is it Possible to Create a Separate Blockchain For a Business?

Of course, it is possible.!

Even Though the public blockchain is an open-source platform, we can’t use it to store private records of a business/organization.

So, we can leverage the open-source characteristics of the blockchain technology to build a private blockchain, and after the full customization, A business can utilize it to store confidential business data or information.

6. What is BaaS?

Baas - Blockchain as a Service.

Nowadays latest technology is being available as a rental, similar to that Blockchain-as-a-service offers businesses and enterprises the ability to rent blockchain infrastructure in the cloud.

In Detail, the mentioned software and hardware required to run blockchain applications are entirely provisioned, maintained, managed, and hosted by the service provider. The Baas partner can build the blockchain technology network on any blockchain platform such as Bitcoin, Tron, Ethereum, Hyperledger Fabric, Corda, Binance Smart chain (BSC), Chain Core, BlockApps or Quorum.

7. How Much It Would Cost to Setup a Private Blockchain For a Business?

Somewhat a challenging question to answer. The Cost to set up a Private Blockchain For a Business will vary based on the requirements, blockchain platforms, technologies, and tools we use. Use nearshore and Offshore Blockchain Development Services to cut short the cost.

There are a lot of the best and leading blockchain application development companies in the world and one among them is BlockchainAppsDeveloper, the best Blockchain Application Development Company providing true and relevant blockchain information about blockchain development costs.

8. Is Blockchain Hackable or Not Hackable?

The programming codes in Blockchain will be embedded in Digital code and stored in a shared database that secures the data from deletion, tampering, and data modification. Though the Blockchain network is a very influential technology, it is not completely immune to hacks or attacks.

9. What are Blockchain Consensus Algorithms?

Consensus Algorithm is the core part of any blockchain-powered network. This Consensus Algorithm is responsible for validating and verifying the transaction, balance, and authorized signature. There are various types of Algorithm, the most 2 important implementations are Proof of Work (PoW) & Proof of Stack (Pos)

Proof of Work:

Producing a proof of work (PoW) involves solving a mathematical puzzle, this math puzzle is solved by the crypto miners, and the one who finds the exact solution will get the crypto miner reward. The whole process of including the Blocks of blockchain requires high computing power & electricity.

Proof of Stack:

The Proof of Stack (PoS) replaces crypto miners with validators, and asks the validator to hold up certain crypto coins as a stake (hold). In proof of stack (PoS), a validator can validate and verify the transactions depends on the number of cryptocurrencies he/she stakes. That is the more cryptocurrencies you own the more cryptocurrency or bitcoin mining power you have.

Explore More About Blockchain Consensus Algorithm!

10. Key features of Blockchain?

Decentralized - No central authority to monitor and also all your transact activities will be stored in a public distributed ledger

Enhanced Security - All the Information on the Blockchain network is hashed cryptographically that is the blockchain network will hide the input information or data through mathematical puzzles.

Distributed Ledger - All details about the transaction and users, participants are distributed to every node in the blockchain network.

Consensus Algorithm- This Consensus Algorithm is the main responsible for verifying the transaction, balance, and authorized signature.

11. How Does Blockchain Work?

Initially, the blockchain node starts a transaction by signing it with a private key via cryptography.

Once the mentioned transaction is validated it is included in blocks called the genesis block.

The new block will become a part of the distributed ledger.

whenever the new block is added, the transaction will be reconfirmed

Six confirmations are required in a blockchain network to consider the transaction final.

12. What is Double Spending in Blockchain?

Double Spending is the process of spending money more than once, and it heads to inflation. To dismiss this approach, blockchain-based cryptocurrencies like bitcoin use a Consensus mechanism known as Proof-of-work. Here the Blockchain Technology prevents Double Spending by verifying the transaction from multiple users in the network.

13. Is there any restriction that only a particular industry should utilize Blockchain?

Blockchain, the Irrevocable technology having its flag of victory in various industries ranging from Agriculture, Education, Solar Energy, Railway to Various Supply chains. Hence there is no restriction that only a particular industry should utilize Blockchain technology.

14. Is it Possible to Create Token On Ethereum Blockchain?

Yes, it is possible to create a token on the Ethereum blockchain,

Since Ethereum is an open-source blockchain network, it has a lot of library packages and has predefined standards like ERC20, ERC222, ERC721, ERC723, and more for programmers to build tokens on the Ethereum Blockchain Network.

15. How Blockchain differs from Traditional Database?

The Primary Difference between Blockchain & Traditional database is

Architecture

Blockchain uses Distributed Ledger Technology whereas Database utilizes user-server architecture.

Integrity

Blockchain Supports data integrity whereas, in the database, there is a possibility for malicious or unwanted activity

Transparency

Blockchain provides High Transparency Whereas in Database admin has full control.

Enterprise Blockchain Solutions For Industries and Startups

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