Learning
A blockchain is a distributed database that is shared among the nodes of a computer network. As a database, a blockchain stores information electronically in digital format. Blockchains are best known for their crucial role in cryptocurrency systems, such as Bitcoin, for maintaining a secure and decentralized record of transactions. The innovation with a blockchain is that it guarantees the fidelity and security of a record of data and generates trust without the need for a trusted third party.
One key difference between a typical database and a blockchain is how the data is structured. A blockchain collects information together in groups, known as blocks, that hold sets of information. Blocks have certain storage capacities and, when filled, are closed and linked to the previously filled block, forming a chain of data known as the blockchain. All new information that follows that freshly added block is compiled into a newly formed block that will then also be added to the chain once filled.
A database usually structures its data into tables, whereas a blockchain, like its name implies, structures its data into chunks (blocks) that are strung together. This data structure inherently makes an irreversible timeline of data when implemented in a decentralized nature. When a block is filled, it is set in stone and becomes a part of this timeline. Each block in the chain is given an exact time stamp when it is added to the chain. (Source: Investopedia)
Operations often waste effort on duplicate record keeping and third-party validations. Record-keeping systems can be vulnerable to fraud and cyberattacks. Limited transparency can slow data verification. And with the arrival of IoT, transaction volumes have exploded. All of this slows business, drains the bottom line — and means we need a better way.
With blockchain, as a member of a members-only network, you can rest assured that you are receiving accurate and timely data, and that your confidential blockchain records will be shared only with network members to whom you have specifically granted access.
With a distributed ledger that is shared among members of a network, time-wasting record reconciliations are eliminated. And to speed transactions, a set of rules — called a smart contract — can be stored on the blockchain and executed automatically.
The gambling industry can use blockchain to provide several benefits to players. One of the biggest benefits of operating a casino on the blockchain is the transparency it provides to potential gamblers. Since every transaction is recorded on the blockchain, bettors can see that the games are fair and the casino pays out. Furthermore, by using blockchain, there's no need to provide personal information, including a bank account, which may be a hurdle for some would-be gamblers. It also provides a workaround for regulatory restrictions since players can gamble anonymously and the decentralized network isn't susceptible to government shutdown. (Source: fool.com)
The Internet of Things (IoT) is making our lives easier, but it's also opening the door for nefarious actors to access our data or take control of important systems. Blockchain technology can provide greater security by storing passwords and other data on a decentralized network instead of a centralized server. Additionally, it offers protection against data tampering since a blockchain is practically immutable. (Source: fool.com)
A non-fungible token (NFT) is a unique piece of data that is stored on a blockchain. More specifically, NFTs are digital files such as photographs, videos, or audio files that can be bought and sold with cryptocurrency. In many cases, NFTs are large files and, thus, a link to the actual photo, video, or audio file is what is stored on the blockchain rather than the actual piece of artwork.
While NFTs have been around for most of the past decade, they have dramatically gained in popularity over the past year. One reason so many people have become interested in NFTs could be because of the massive sales prices associated with some NFTs.
This increased popularity has led some to question the role that copyright law will play in the protection of this new type of artwork.
While NFTs are relatively new and may be an unfamiliar type of art, copyright law will treat NFTs the same as any other traditional artwork. If an artist creates a new piece of artwork, they will automatically acquire a copyright of that new artwork. There are certain rights that are acquired by a copyright owner automatically upon creation of a copyrighted work. A copyright owner has exclusive rights to reproduce the work, prepare derivative works, and distribute copies of the work. Thus, a copyright owner has exclusive rights to make an NFT based on an original piece of artwork because “creation of an NFT can be categorized as a copy or even a derivative of the original work.” (Source: jdsupra.com)
ERC-20 defines a common list of rules for Ethereum tokens to follow within the larger Ethereum ecosystem, allowing developers to program how new tokens will function in this ecosystem. This also allows developers to accurately predict interaction between tokens. These rules include how the tokens are transferred between addresses and how data within each token is accessed. (Source: coinbase)
An ERC20 token contract keeps track of fungible tokens: any one token is exactly equal to any other token; no tokens have special rights or behavior associated with them. This makes ERC20 tokens useful for things like a medium of exchange currency, voting rights, staking, and more. (Source: openzeppeling)
Here’s a brief rundown of how the mandatory standards apply to the creation of tokens.
- TotalSupply: Outlines the total number of tokens to be created.
- Approve: Helps to eliminate the possibility of counterfeit tokens being created by requiring approval of smart contract functions.
- BalanceOf: Returns the total number of tokens held by an address, allowing users to check their balances.
- TransferFrom: Allows for the automation of transactions when desired.
- Transfer: Allows for the transfer of tokens from one address to another, like any other blockchain-based transaction.
- Allowance: When a smart contract wants to execute a transaction, it has to be able to see the balance held by the Ethereum wallet trying to transact. The allowance function allows the contract to carry out the transaction if the user has sufficient balance or cancel the transaction if they do not.
Satoshi is a structural part of the Bitcoin cryptocurrency, which is one hundred millionth of bitcoin ($10^{-8}$). Such small units facilitate transactions with BTC. The total structural component of 1 bitcoin (BTC) is equivalent to 1000 millibits (mBTC), 1,000,000 microbe (mkBTC) or 100,000,000 Satoshi. The exact data is unknown, but it is assumed that Nakamoto can have 1 million BTC, and it is equivalent to 100 000 000 000 Satoshis. (Source: Bitcoinwiki)
Wei is the smallest denomination of ether—the cryptocurrency coin used on the Ethereum network. One ether = 1,000,000,000,000,000,000 wei ($10^{-18}$). The other way to look at it is one wei is one quintillionth of an ether. (Source: Investopedia)
more to come!
Last modified 4mo ago