What is a Blockchain?
A blockchain is a shared, transparent and immutable ledger for recording transactions, tracking assets and building trust. It is a distributed ledger technology, which securely records information across a peer-to-peer network. Although it was created for financial service, blockchain's potential lies far beyond cryptocurrency. These ledgers can record data from Health sector, Land Registry, eSports, Enterprise Records, logistics Manifests, identities - almost anything that holds value.
Blockchain technology is actually a combination of 4 components:
- Peer-to-peer networks
- Consensus mechanism; Crypto economics and Game theory
- Blockchain data structure
Blockchains reward participants with network currency known as cryptocurrency. Validation of transactions and provision of security are typically rewarded. These rewards go to node operators.
A coin is a reward token that serves as the native currency of a blockchain. Bitcoin, ETH and CMP are commonly known coins.
A token is a secondary currency that is minted upon the blockchain, and is usually exchangeable for the local currency or coin. An example of a commonly used token standard is ERC-20.
Caduceus is an advanced blockchain implemented as a Directed Acyclical Graph (DAG). This allows Caduceus to support a high number of concurrent transactions beyond the limits imposed by conventional blockchains.
Key benefits of Blockchain
- Robustness Blockchain Technology stores information in blocks which are chronologically synchronised. And these blocks cannot be controlled by an individual making blockchain highly secured.
- Decentralised Ledger Decentralised Ledger operates on peer to peer basis. DLT allows recording the transaction of assets and their details in multiple places at the same time without any central authority. Unlike traditional databases, distributed ledgers have no central data store or administration functionality.
- Immutable Once a block is sealed cryptographically or added to main chain, it is impossible to delete or edit, ensuring the immutability of the digital ledger.
- Transparency It is possible for a user to verify and track their transactions, with the entire record of the transactions available in the blockchain.
- Cryptocurrencies The immutable and transparent properties of blockchains make it easy to record transactions in a way that can give rise to cryptocurrencies, or currencies secured by cryptography.
- Metaverses Empirical storage of absolute ownership enables the rise of virtual universes or metaverses, where entities ranging from virtual properties to game assets can exist in a transparent and secure manner.