Blockchain developers are earning twice as much as normal developers

But what is blockchain?

Here is a very basic explanation of Blockchain technology

Blockchain

First let us take an example

When you go to vote in elections , when you press button for your favorite party on EVM or ballot papers ,have you ever wondered if there is any guarantee that your vote is actually being registered? Any scams will not take place?
You will think, we get this guarantee by central agency which is Election Commission. Basically , we have to do blindly trust on Election Commission that they will work properly for our votes to be counted properly ,but imagine if we could’ve guaranteed this ourselves and no central agency, Election commission or any third party was required. If we could verify our own votes without having trust on anyone else.

Do you know this technology can be build using blockchain.

It's it’s the same technology on which Bitcoin is based.

Blockchain:

It is basically, a technique to store information. To store data in decentralized manner. Decentralised means that there will be no central authority to control the entire data and information.

How Blockchain works

There are many ways to store information like, Writing something on excel file on computer is the way to store information , in excel file your information is stored in form of table. Similarly, in blockchain the information is structured in forms of blocks. Each block is made up of three main things:

First, any data or information you store in the block.

Second, each block has it’s fingerprint known as Hash. This is the way to uniquely identify a block among other blocks. Every block has its own fingerprint.

Third, each of these block stores the fingerprint of block before it.

Here is block which will have its own fingerprint and also block behind it. And any information you put into it will be stored here. This is how all blocks are linked with each other.

Is Blockchain Secure?

The most unique thing about it is if you try to change the data in any block, then hash of the block will change and if the hash of one block changes, the hash of the next block will also change & eventually the entire blockchain will be destroyed ,which is next to impossible. The 2nd major reason for blockchain being secure is Decentralisation.

You will not find a blockchain stored in only one computer. Blockchain are stored in network of computers. All the computer around the world belonging to paraticipants of the blockchain will have one copy with them.

The people who are connected to blockchain through their computers who allows to run blockchain on their system then they are called as nodes. Some nodes among them are miners.Whenever new data is added in it,Miners work is to verify that data(all entry are done properly,not)

Now you might wonder that if everyone can see information in the blockchain,and copy of blockchain will be present in every computer of the network, so any information you put in will not be private and can be seen by anyone. What about your privacy?

Privacy in Blockchain

Actually, the information in the blockchain is not only secure but also is privacy protected. It can be so because each computer in the network has its own private key and public address. Basically , think them as the email address and email password. When you login to your mail you enter email(public address) and the password(private key) and only you can log into your account. It is same with Blockchain.

Trust issues of Blockchain

Consensus Mechanism

Trusts plays an important role in Blockchain. But how trust is build here? Eg: Let’s say you have best friend, he/she expects a certain behavior from you Like to be faithful, share secrets,care… These behaviours act as "consensus". Your bestfriend will start to trust you when you became friendly with him/her. Other people will know when they will see your friendship bond..

So, a “consensus” is set of behaviors/mechanisms/norms people agree on to built trust.

Now the question: What Consensus have to do with blockchain? If consensus is what lies between two people agreeing on something And Blockchain validates those agreements Then we need consensus to trust in Blockchain's validations. Like in a friendship, we need to set the behaviors/norms/mechanisms of how "trust" is built. In the Blockchain we mostly use 2 norms/mechanisms to build trust: • Proof of Work • Proof of stake

Proof of Work

Imagine the following: In high school, we get grades right? Studying is the "work" and by putting in the work- studying - we get a grade. "Proof of Work" stands for the same here. We put in the work and we get a result. That result proofs our work. Who puts in the "work" and what type of "work" is that? Miners. Miners = people who use computing power to "work". "Work" = solving maths puzzles. The 1st miner to solve the puzzle gets rewarded. How? With Bitcoins.

Proof of Stake

So, at the end of our high school, we get a certificate, right? That certificate serves as "proof" of our work. And why do we need a certificate? To serve as "proof" for what we've put in "stake". And what was that? Our money, time, and studying hours. We believe in certificates cause they're validated. And who validates them? Teacher's right? Here: Validators = people who validate blocks in the "chain" The 1st validator to validate a block gets rewarded. How? Ethereum coin(eth).

Validators vs Miners "But, what are the differences between Miners and Validators?"

Miners spend tons of energy on computing power - multiple people competing to solve the same puzzle. Validators don't.

Miners only exist in Bitcoin.

Proof of stake uses less energy than proof of work.

Bitcoin uses proof of work, and

Ethereum is currently transitioning from proof of work to proof of stake.

This brings us to the end of the article.

If you still think that something is missed, don’t forget to use the comment section below.

Hope you enjoyed it!!