- May 20, 2020
- Posted by: Anita Iyer
- Category: Blog
A blockchain is a public ledger of information collected through a network that sits on the internet. It is how this information is recorded that gives blockchain its groundbreaking potential. The distributed, cryptographically-secure database structure that allows network participants to establish a trusted and immutable record of transactional data without the need for intermediaries or middlemen. Blockchains have proved to be a superior solution for securely coordinating data, but they are capable of much more, including the establishment of smart contracts, tokenization, incentive design, tampering and attack-resistance.
The name “Blockchain”
The name “Blockchain” derived from how it works and the method of how it stores information, the data is stored into blocks, which is linked via a virtual chain with other blocks of similar information. The function of linking blocks into a chain that makes the information stored on a blockchain solid and trustworthy. Once the information is recorded in a block it cannot be changed or tampered with without having to alter every block that came before or after it, making it impossible to change because other ledger holders of the blockchain will automatically spot the tampering and will reject the tampering action.
How does a blockchain work?
When a digital transaction occurs in a blockchain network, it is placed in a “block” with other transactions that have taken place in the same time period. The block is then sent to the network. A blockchain network is comprised of nodes (computers) also known as miners who verify and relay transaction information by using computing power to solve a cryptographic puzzle and validate the block of transactions. The first miner to solve and validate the block is rewarded with the cryptocurrency dedicated to the network (e.g. bitcoin or Ethereum). Each verified block is connected to the previously verified block, creating a blockchain.
The types of blockchain networks
The most popular network is currently Bitcoin, as it has maintained its position as the world’s top cryptocurrency by market cap. Though it is the 1st to be adapted globally since 2009 but it is not the best in terms of technology; it lacks scalability, speed and the transaction fees could be expensive. More notably, bitcoin network has no other utility other than sending and receiving bitcoin and that’s why the 2nd generation of blockchain networks such as Ethereum made a buzz in the crypto sphere, unlike other blockchains, Ethereum can do much more. Ethereum is programmable, which means that developers can use it to build new kinds of applications, smart contracts and tokens. The iOWN Group specifically selected to create the iOWN Token on the Ethereum Blockchain.
Right now, many developers all over the world are building applications on Ethereum and inventing new kinds of decentralized applications called (Dapps), many of which you can use today. The iOWNX Wallet for instance is built and secured by the Ethereum blockchain and so is the soon to be launched iOWNX, Crowd-investing platform which will run on Ethereum too.
These decentralized applications (or “Dapps”) gain the benefits of cryptocurrency and blockchain technology. They are reliable and predictable, meaning that once they are “uploaded” to Ethereum, they will always run as programmed. They can control digital assets in order to create new kinds of financial applications. They can be decentralized, meaning that no single entity or person controls them.
There are several other popular blockchains other than Bitcoin and Ethereum that also provide solutions to modern internet and technology era such as NEO, Eos, Tron, Stellar and Ardor. However, the majority of tokens are built on the Ethereum blockchain as reported on coin market cap.
What is a blockchain wallet?
A blockchain wallet contains the public key for others to transfer cryptocurrency to your address and the private key so you can securely access your own digital assets. A blockchain wallet usually accompanies node hosting and stores cryptocurrencies on your computer, phone, or a specialized USB. To learn more about crypto wallets, watch this video.
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