Blockchain Types,Structure and Life Cycle
The bolckchain technology is one of the most important technologies that will change the life of the humanity, for this we start by a presentation and the history of this new technology in the last years.
In the last article “What is Blockchain Technology” we define the Principe of Blockchain and in this article we will continue with Blockchain bye identify Blockchain Types, Structure and Life Cycle.
So let’s start our new adventure with Blockchain. There are many different types of blockchains.
For this type Bitcoin is considered the right example, its large distributed networks that are run via a native cryptocurrency. A cryptocurrency is a unique bit of information that can be traded between two parties. Public blockchains are open for all people to participate at any stage and have open source code that their community maintains.
Ripple is choose the right example for this type of blockchain, manage roles that persons can play within the network. They’re still large and distributed systems that use a native token. Their core code mayor may not be open source.
Also known as dispensed ledger technology (DLT) tends to be smaller and do not make use of a token or cryptocurrency. Their membership is carefully controlled. These kinds of blockchains are preferred through consortiums that have depended on members and trade confidential information.
All three types of blockchains use cryptography to allow each participant on any given network to manage the ledger in a secure way without the need for a central authority to enforce the rules. The removal of central authority from the database structure is one of the most important and powerful aspects of blockchains.
Blockchain Life Cycle
Blockchains originated with the creation of Bitcoin. It demonstrated that a group of individuals who had never met could operate online within a system that was desensitized to cheat others that were cooperating on the network.
The original Bitcoin network was built to secure the Bitcoin cryptocurrency. It has around 5,000 full nodes and is globally distributed. Firstly it’s used to trade Bitcoin and exchange value, but the community saw the potential of doing a lot more with the network. Because of its size and time-tested security, it’s also being used to secure other smaller blockchains and blockchain applications.
The Ethereum network is a second evolution of the blockchain concept. It takes the traditional blockchain structure and adds several new programming languages that are built inside of it.
Like Bitcoin, it has over 10,000 full nodes and is globally distributed. Ethereum is primarily used to trade Ether and create smart contracts.
The most popular Ethereum smart contract is the ERC 20. It allows for the generation of interchangeable tokens. These tokens can be used for fundraising purposes.
There is a third evolution in blockchain technology that is under active development addressing speed and data size constraints. Fixing these issues will enable blockchain technology to be used more realistically with mainstream applications.
It will take several years before it is clear what structure will win out.
Popular new developments include sharding, a type of database partitioning that separates large databases into smaller parts called data shards. An Ethereum development effort called fork choice rule splits the Ethereum blockchain into several parallel networks. It may allow Ethereum to scale more efficiently and reduce the congestion on the network, increasing transaction speeds and lowering transaction costs.
Popular scaling theory is called POS
POS is the concept of putting up tokens or cryptocurrency as a bond for processing transactions. If the node is corrupted and does not process the transactions accurately, the node may forfeit their tokens or cryptocurrency.
A third effort to scale blockchain technology utilizes trusted nodes. For example Factom network operates with federated nodes and an unlimited number of auditing nodes. These nodes are trusted with ensuring the system. Factom selected network is small, just over 60 nodes. To hedge for security risks, Factom anchors itself into other distributed networks to piggyback on the security of more extensive systems. Than partitions its network into smaller, faster and more easily managed parts called chains. Also Factom has faster transaction speeds and lower transaction costs than POW blockchains.