What is Blockchain technology and future world of web 3.0
By: Bala Venkatesh
Tags: Technology, Web, Bitcoin, Decentralization, Blockchain

Block chain

Blockchain

Today everyone is talking about the blockchain, so First will look at what is Blockchain. Blockchain is one kind of decentralised technology, As you see the above diagram showing rectangular blog, Each blog called as NODE in blockchain technology. Each block will have its own digital signature, contain digital signature of the previous block, and have some data

Blockchain sample structure

Each block doesn’t just contain the hash of the block before it, but its own hash is in part, calculated from the previous hash. If the previous block’s data is changed then the previous block’s hash will change ( since it is calculated in part, by the data) in turn affecting all the hashes of the blocks there after. Calculating and comparing the hashes allow us to see if a blockchain is invalid.

What does this mean ? …Changing any data in this list, will change the signature and break the chain.

So what is hashing?

In simple terms, hashing means taking an input string of any length and giving out an output of a fixed length. In the context of cryptocurrencies like Bitcoin, the transactions are taken as an input and run through a hashing algorithm (Bitcoin uses SHA-256) which gives an output of a fixed length.

Let’s see how the hashing process works. We are going put in certain inputs. For this exercise, we are going to use the SHA-256 (Secure Hashing Algorithm 256).

Sample hashing

How Blockchain works

The technology idea behind the Blockchain is similar to that of a database, except the way you interact with the database is different. So, let’s understand the concept how it works:

Someone requests a transaction.

1. The requested transaction is broadcasted to P2P network consisted of computers known as nodes.

2. Validation: The network of nodes validates the transaction and user’s status using known algorithms.

3. A verified transaction can include cryptocurrency, contracts, records or other information.

4. Once verified, the transaction is linked to other transactions to create a new block of data for the ledger.

5. The new block is then appended to the existing Blockchain, in a way that is permanent and unalterable.

6. The transaction is finally complete.

“We can define the blockchain as a system that allows a group of connected computers to maintain a single updated and secure ledger.”

Now the turn to Web3.0

Web2.0 vs Web3.0

The birth of blockchain spawned a movement which is set to disrupt the entire tech industry. Blockchain and crypto enthusiasts are calling it the Web 3.0 and it’s looking to make all traditional business models defunct. This is because, in short, the technology will facilitate the decentralization of the World Wide Web, thereby equalizing control and ownership back from the grasp of profit hungry corporations.

Blockchain decentralizes the control:

In legacy systems, the ‘business logic’ or ‘processing programs’ and ‘data’ is tightly controlled by a central entity like Google, Facebook, Apple. These service providers keep the secret sauce with themselves.

The user of Google, Facebook, Apple, etc generate the data /content but do know anything on how his/her data is being used. He/she has no control to monetise his/her own data. If he/she decides to leave the service, he / she can not get the data back. His/her data is lost forever.

But there is a hope. Freedom is not far off.

Blockchain is the technology that is spearheading the momentum of democracy and decentralization in online world.

Data stored by anyone in Blockchain Database is temper proof. Its immutable. That is why individuals and enterprises have shown trust in Blockchain.

In many scenarios the Blockchain based trust is preferred in modern digital systems than the trust that Banks, Insurance Agents, Property Brokers and middleman provide.

Blockchain has the capability to decouple the ‘business logic / programs’ from ‘data’ using ‘Smart Contract’. Both ‘Smart Contract’ and ‘Data’ are portable. No single organization can make hostage of your data.

Now you can track your data :)

$……………….………… Happy learning…………………………….$