Blockchain Development

Blockchain Development

Blockchain refers to an unceasing burgeoning list of records – blocks – that are securely connected via cryptography. Bitcoin is a decentralized currency – the first – built on this technology. Information on all transactions is automatically updated simultaneously for all users across the network.

Blockchain development involves using requisite knowledge on computer science and economics to create a decentralized system.

  • Data structures – directed acrylic graphs are a prominent part of most blockchains. Other data structures used for blockchain development include hash maps and binary search trees
  • Cryptography – public and private key cryptography form a basis for any cryptocurrency Cryptography requires good knowledge on abstract math for development on blockchain
  • Elliptic curve cryptography is used for bitcoin
  • Distributed systems – they are core to understanding blockchain programming and development. Reading a few textbooks will give a basic idea and all you need to know about it
  • Macroeconomics – cryptocurrencies are subject to the same laws of demand and supply as money. Hence, the respond to inflation and deflation. Knowledge of microeconomics and velocity of money is also required

Benefits of Blockchain Development

There are numerous benefits that can be found when developing on blockchain technology. Some of these benefits are listed below;

  • Ease of transaction – without a need for third-parties to vet transactions, it makes it an attractive means of transacting business. It also save fees that will otherwise be charged for each transaction
  • Decentralized system – since the technology works with a network of computers and ledgers, transactions aren’t constrained by location
  • Anonymity and Security – users on the bitcoin blockchain are anonymous and previous transaction can’t be traced to a particular person which obviously has its benefits and demerits. For anyone who buys a cryptocurrency, such funds are safe and impervious to hacking due to cryptography[1]. Also, files and data can’t be lost on the blockchain

Ethereum and Other Adaptions

Blockchain development has garnered a following since the success of bitcoins and has seen other organizations and countries exploit its technology.

Ethereum blockchain is termed by some as a superset of Bitcoin blockchain due to its added functionality – executing arbitrary computations using smart contracts[2]. This feature has helped Ethereum grow into the largest cryptocurrency behind bitcoin in a little over two years of its conception.

Nonprofit organizations like the Bill& Melinda Gates Foundation and the U.N. started the Level One[3] and Building Blocks[4] projects respectively to help with financial transactions for the less-privileged around the world

Countries like Tunisia and Senegal have each created a national cryptocurrency using blockchain technology while Australians have put forward some ICOs given the country’s favorable disposition to the technology.

 

 

[1] To steal funds on a blockchain, a hacker would have to rewrite the data of over 50% of active users on the blockchain.
[2] Franco, Pedro (2014). Understanding Bitcoin: Cryptography, Engineering and Economics. John Wiley & Sons. p. 9. ISBN 978-1-119-01916-9. Retrieved 4 January 2017 – via Google Books.
[3] Woyke, Elizabeth (18 April 2017). “How Blockchain Can Bring Financial Services to the Poor”. MIT Technology Review.
[4] What is ‘Blockchain’ and How is it Connected to Fighting Hunger?”. World Food Programme. 6 March 2017.
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