Blockchain

Blockchain Technology: 10 LAYERS

1. Digital Cryptocurrency

The most visible element of a blockchain, for example, Bitcoin (BTC) or Ethereum (ETH). Like any other currency, it is also traded on exchanges and is used to buy and sell goods and services. The challenge – how it trades with traditional (“Fiat”) currencies. Get your own here.

2. Decentralized Computing Infrastructure

A blockchain binds a number of networked servers together that commonly follow a consensus process for releasing and recording information. However, developers do not need to set up these servers. This is contrast to the Web, which uses an HTTP request sent to a server. Also, with a blockchain, the network makes the request to the blockchain.

3. Transaction Platform

A blockchain network also validates value-related transactions of digital money or assets. Each time a consensus is reached, a transaction is recorded on a “block” (a storage space). In addition, the blockchain keeps permanent track of every transaction for future verification. A private blockchain can perform up to 10,000 transactions per second (TPS). Therefore, by 2019, it’s estimated that the TPS will be virtually unlimited.

4. Decentralized Database

A blockchain stores data semi-publicly in a linear container space (the block). Anyone can verify you’ve placed the information because the container has your signature, however, it remains secure: only you can unlock what’s inside.

5. Shared, Distributed Accounting Ledger

A blockchain is also a distributed, public, time-stamped asset ledger that keeps track of every transaction ever processed on its network. Shared across multiple parties, the ledger is private, public, or semi-private.

6. Software Development Platform

Developers see blockchains first and foremost as a set of decentralized, cryptographically secure software technologies. Also, blockchains can possess a variety of APIs for ongoing application development.

7. Open Source Software

The source of the software for most robust blockchains is public, enabling collaborative development of further enhancements on top of the core software.

8. Financial Services Marketplace

As cryptocurrencies continue to gain broader acceptance as valid currencies, blockchains can also provide a next-generation option for traditional financial products and services, including derivatives, options, swaps, synthetic instruments, investments, loans, and many others.

9. Peer-to-Peer Network

A blockchain is purely peer-to-peer: its network is really the computer itself. This decentralized approach also enables any user to connect with any other user instantly, no matter where they are. Hence, there is no need for an intermediary to filter, block or delay a transaction, creating a marketplace of users.

10. Trust Services Layer

Finally, all blockchains commonly hold trust as an atomic unit of service. Delivery of a function or a service via blockchains comprises data, processes, identity, business logic, or agreement terms – essentially, anything digitized and has an inherent or related value.

 

Blockchain