What is a distributed ledger technology?
DLT is a decentralized repository maintained by different anonymous people through different nodes. Blockchain is basically a kind of DLT on which the record of transactions and other data is stored by immutable cryptographic signatures called hashes. Then these transactions are compiled by the size of transactions called blocks. Each block has a limit and every new block carry the hash of the previous block. In this way a chain of blocks is created, that is why distributed ledgers are called the blockchain.
When a thing or new invention hits the success button, it will attract a lot of attention. People study that new thing with microscopic lenses for the purpose of learning as well as for getting their piece of success. Since the sensational boom of cryptocurrencies, the underlying system, on which cryptocurrencies rely is called a blockchain. The world has acknowledged the efficiency, security, and versatility of blockchain technology. There are now dozens of blockchain-based multibillion projects.
What is blockchain?
Blockchain works as a specific kind of database and store data on a distributed ledger, but the real difference is, the way it stores the data and information. Information is stored in the form of blocks that are chained together in chronological order.
Almost all kinds of information and data can be stored on the blockchain. In the case of cryptocurrencies, it stores the information of transactions.
In the decentralized blockchain, the transactional data is immutable which means the information that is once entered on the ledger of the blockchain is irreversible and recorded permanently.
What are smart contracts?
The smart contract is a code that is built on supported blockchains to expedite, authenticate and bargain the agreement. When the specific conditions are completed, the stipulated agreement is autonomously executed.
What are different kinds of blockchains?
Primarily there are three kinds of blockchains.
- Public blockchains, including Bitcoin and Ethereum.
- Private blockchains, including hyper ledger.
- Hybrid blockchains including Dragonchain.
Public blockchains are open source. Anyone can contribute as a user, miner, developer, and community member. The key feature of public blockchains is their transparency because anyone can see the transactions on the public ledger.
- Public blockchains are autonomously decentralized. No one can control or change the transactions and the order in which they are recorded.
- It is almost impossible to regulate or restrict who is joining the blockchain. This quality makes it extremely censorship-resistant.
Another kind of blockchain is Private Blockchain, it is also called permission blockchain. There are some key differences between public and private blockchains.
- If you want to join a private blockchain you have to request permission.
- All transactions on private blockchains are private and only visible to those who were allowed to join the system
- Private blockchains are centralized.
A consortium blockchain is considered a part of private blockchains. The main difference between private and consortium blockchain is: the latter is controlled by groups instead of a single entity.
What is a hybrid blockchain?
In the ecosystem of blockchains, Dragonchain has a different place, because it is a hybrid system. in other words, hybrid blockchains mingle the benefits of public and private blockchains. It will provide the business the great power and access to choose which data and information they allow making public and which data will remain private.
- The hybrid tendency of Dragonchain blockchain allows the work with other blockchains and this will ultimately facilitate a multi-chain network of blockchains.
- The multi-blockchain system ultimately boosts the transparency, security, and reliability of a blockchain.
- Multi-blockchain cooperation boost the security of transactions because it combines the hash power of different blockchains