{"id":6616,"date":"2018-11-01T11:55:34","date_gmt":"2018-11-01T11:55:34","guid":{"rendered":"https:\/\/staging.heliossolutions.co\/blog\/?p=6616"},"modified":"2019-11-15T09:04:40","modified_gmt":"2019-11-15T09:04:40","slug":"blockchain-technology-a-driver-and-solution-to-new-global-infrastructure","status":"publish","type":"post","link":"https:\/\/staging.heliossolutions.co\/blog\/blockchain-technology-a-driver-and-solution-to-new-global-infrastructure\/","title":{"rendered":"Blockchain Technology: A Driver and Solution to New Global Infrastructure"},"content":{"rendered":"

\"\"<\/p>\n

Have you ever wondered about the technology that underpins Digital currency like Bitcoin, Litecoin, Ethereum etc.?<\/span><\/p>\n

Cryptocurrency has taken the world by storm while average leaders and investors are skeptical, big investors have taken the leap and put their money on it. If predictions are to be believed the day is not far when <\/span>Bitcoin and its Blockchain technology<\/strong> will eventually force the financial organizations across the globe to reconsider, adapt and change their traditional roles and infrastructure. With Ethereum passing the 1 billion USD benchmark Blockchain technology has become a force to reckon as the first non-affiliated unicorn.<\/span><\/p>\n

While several debates are spewing about the speed of Blockchain adoption, major changes are already in motion- that will soon reach all areas of tech, finance and society as <\/span>Custom Blockchain Solutions<\/a>.<\/strong><\/p>\n

\n
\n
Want to explore Blockchain Business Opportunities?<\/h5>\n
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Let\u2019s help you expand your enterprise edge over competition<\/p>\n <\/div>\n

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When Blockchain was invented in 2008 its sole function was to serve as a public transaction ledger of the cryptocurrency Bitcoin, however <\/span>Blockchain as a service<\/strong> is much bigger than Bitcoin and has a far more holistic reach. The experts see that it can power our need for bit data and create a new digital \u00a0identity which not only resolves the present issues with cyber security but also challenge the monopoly of big tech giants like Google, Facebook that have somehow ended up controlling the destiny of our data and the overall internet.<\/span><\/p>\n

Blockchain Technology is like the new kid on the block that each one of us wants to befriend but does not know how to, mainly because we are still not sure whether to believe in the phenomenon or not. Let\u2019s start from the beginning to understand the complete concept of Blockchain computing.<\/span><\/p>\n

Blockchain was developed by Satoshi Nakamoto<\/strong>, as the central nervous system of Bitcoin in 2008. According to Wikipedia<\/strong>, <\/span><\/p>\n

\u201cBlockchain\u00a0is a cryptographically secured, time-stamped, public and distributed database of every Bitcoin transaction\u00a0that has ever occurred on the network.\u201d<\/p><\/blockquote>\n

Simply put, Blockchain is a diary that is impossible to forge! Having said that, it is essential and mandatory to function on fixed principles that form the backbone of the technology.<\/span><\/p>\n

1<\/em><\/strong>st<\/em><\/strong> Principle: Information once shared cannot be forged or changed<\/em><\/strong><\/h2>\n

When a transaction is made on Blockchain, it is added to a group of transactions which is known as \u2018Blocks\u2019. Each such block of transaction is connected to the block before and after in a chronological, irreversible chain \u2013Blockchain<\/span><\/p>\n

2<\/em><\/strong>nd<\/em><\/strong> Principle: A decentralized technology<\/em><\/strong><\/h2>\n

It cannot be controlled by a single entity and has no single point of failure. Any attempt to tamper with the data won\u2019t be approved by the rest of the network and will be ignored.<\/span><\/p>\n

3<\/em><\/strong>rd<\/em><\/strong> Principle: The trust protocol<\/em><\/strong><\/h2>\n

The technology creates an ecosystem where there is no third-party interference; it has successfully eliminated the meddling of a middleman. Trust is established through code and collaboration, rather than a central authority.<\/span>
\nLet us now see how these principles are applied:<\/span><\/p>\n

Imagine there are 10 people who have decided to make a separate currency and one person- John decided to keep a track of all the actions in a diary.\u00a0<\/span><\/p>\n\n\n\n<\/colgroup>\n\n\n\n\n\n\n
Amy gave 2 coins to Sarah<\/span><\/span><\/td>\n<\/tr>\n
Mary gave 4 coins to Jack<\/span><\/span><\/td>\n<\/tr>\n
Jack gave 2 coins to Amy<\/span><\/span><\/td>\n<\/tr>\n
Sarah gave 1 coin to Pete<\/span><\/span><\/td>\n<\/tr>\n
And so on\u2026<\/span><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

One person \u2013 Jack decided to steal some money and changed the entries in John\u2019s absence.<\/p>\n\n\n\n<\/colgroup>\n\n\n\n\n\n\n
Amy gave 2 coins to Sarah<\/span><\/span><\/td>\n<\/tr>\n
Mary gave 4 coins to Jack<\/span><\/span><\/td>\n<\/tr>\n
Jack<\/span><\/del> Mary gave 2 coins to Amy<\/span><\/span><\/span><\/td>\n<\/tr>\n
Sarah gave 1 coin to Pete<\/span><\/span><\/td>\n<\/tr>\n
And so on..<\/span><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

John noticed the changed entries and decided to stop this , he devised a program called Hash that turned text into a series of numbers and letters, even a small change in the series or string creates a completely new Hash.<\/p>\n

After each record he added a Hash. The new diary entries looked like this \u2026<\/p>\n\n\n\n<\/colgroup>\n\n\n\n\n\n\n
Amy gave 2 coins to Sarah<\/span><\/span><\/td>\nofff675gnfyu87200muufgds00772midibnksdjfh34523fgii<\/span><\/span><\/td>\n<\/tr>\n
Mary gave 4 coins to Jack<\/span><\/span><\/td>\njhadfu32749fhnawiot80457obergh380r70q2negitu70457<\/span><\/span><\/td>\n<\/tr>\n
Jack gave 5 coins to Amy<\/span><\/span><\/td>\ntwaufoaf304ryb94b745vbr75qubrv0r8750bvr9057bvry09<\/span><\/span><\/td>\n<\/tr>\n
Jack gave 10 coins to Sarah<\/span><\/span><\/td>\noajdhfuwyr32047gbtv3926p5b 35yb0v3475vb0qy075vb3t<\/span><\/span><\/td>\n<\/tr>\n
Mary gave 2 coins to Jack<\/span><\/span><\/td>\npywbr7v5uyv80b505yvb0yb08y505uyvb05yr0vqwo9578b<\/span><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Jacks somehow got to the new diary entries and changed them again..<\/p>\n\n\n\n<\/colgroup>\n\n\n\n\n\n\n
Amy gave 2 coins to Amy<\/span><\/span><\/td>\nofff675gnfyu87200muufgds00772midibnksdjfh34523fgii<\/span><\/span><\/td>\n<\/tr>\n
Mary gave 4 coins<\/del> 12 coins to Jack<\/span><\/span><\/td>\nJhadfu32749fhnawiot80457obergh380r70q2negitu70457<\/del> 07vqb5qrvq507qyriotbntvbyvw3t6ovbyt9v634w7b5yvv489<\/span><\/span><\/td>\n<\/tr>\n
Jack gave 5 coins to Amy<\/span><\/span><\/td>\ntwaufoaf304ryb94b745vbr75qubrv0r8750bvr9057bvry09<\/span><\/span><\/td>\n<\/tr>\n
Jack gave 10 coins<\/del> 1 coin to Sarah<\/span><\/span><\/td>\noajdhfuwyr32047gbtv3926p5b 35yb0v3475vb0qy075vb3t<\/del> rc029475vb025qy3vb5780q2tv7q0285vb07y30qyvb5yv7q<\/span><\/span><\/td>\n<\/tr>\n
Mary gave 2 coins to Jack<\/span><\/span><\/td>\npywbr7v5uyv80b505yvb0yb08y505uyvb05yr0vqwo9578b<\/span><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

John noticed the new changes and decided to complicate the record of each transaction. He decided to insert a hash generated from the record + last hash to make each entry dependent on the previous one.<\/p>\n\n\n\n<\/colgroup>\n\n\n\n\n\n\n
Input<\/strong><\/span><\/span><\/td>\nHash<\/strong><\/span><\/span><\/td>\n<\/tr>\n
Amy gave 2 coins to Amy<\/span><\/span><\/td>\nofff675gnfyu87200muufgds00772midibnksdjfh34523fgii<\/span><\/span><\/td>\n<\/tr>\n
Mary gave 4 coins to Jack offf675gnfyu87200muufgds00772midibnksdjfh34523fgii<\/span><\/span><\/td>\njhadfu32749fhnawiot80457obergh380r70q2negitu70457<\/span><\/span><\/td>\n<\/tr>\n
Jack gave 5 coins to Amy jhadfu32749fhnawiot80457obergh380r70q2negitu70457<\/span><\/span><\/td>\ntwaufoaf304ryb94b745vbr75qubrv0r8750bvr9057bvry09<\/span><\/span><\/td>\n<\/tr>\n
Jack gave 10 coins to Sarah twaufoaf304ryb94b745vbr75qubrv0r8750bvr9057bvry09<\/span><\/span><\/td>\noajdhfuwyr32047gbtv3926p5b 35yb0v3475vb0qy075vb3t<\/span><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

If Jack wanted to steal the money, he will have to change the Hash of all the previous entries, since Jack really wanted the money he spent a lot of time counting and changing all the Hashes.<\/p>\n

John complicated the matter further by adding another element \u2018Nonce\u2019, he decided to add a number after each record, a Nonce should be such that each Hash ends with two zeros.<\/p>\n\n\n<\/colgroup>\n\n<\/colgroup>\n\n\n\n\n\n\n
Input<\/strong><\/span><\/span><\/td>\nHash<\/strong><\/span><\/span><\/td>\n<\/tr>\n
Amy gave 2 coins to Amy 567<\/span><\/span><\/td>\nofff675gnfyu87200muufgds00772midibnksdjfh34523fgii800<\/span><\/span><\/td>\n<\/tr>\n
Mary gave 4 coins to Jack 453 offf675gnfyu87200muufgds00772midibnksdjfh34523fgii800<\/span><\/span><\/td>\njhadfu32749fhnawiot80457obergh380r70q2negitu7045700<\/span><\/span><\/td>\n<\/tr>\n
Jack gave 5 coins to Amy 789 jhadfu32749fhnawiot80457obergh380r70q2negitu7045700<\/span><\/span><\/td>\ntwaufoaf304ryb94b745vbr75qubrv0r8750bvr9057bvry0900<\/span><\/span><\/td>\n<\/tr>\n
Jack gave 10 coins to Sarah 65 twaufoaf304ryb94b745vbr75qubrv0r8750bvr9057bvry0900<\/span><\/span><\/td>\noajdhfuwyr32047gbtv3926p5b 35yb0v3475vb0qy075vb3t00<\/span><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Now to forge the transaction records Jack will have to spend hours choosing a Nonce for each line. <\/span><\/p>\n

John then decided that there were too many transactions and he couldn\u2019t maintain such records forever. So, when he recorded 5000 transactions, he converted them to a 1 page spreadsheet, and spread this sheet to 5000 computers which were all over the world.<\/span><\/p>\n

Each spreadsheet is called a Block and each computer is called a Node, even if Jack managed to change any one entry the original Hash will still be saved on other computers and thus the change will not be allowed. Spreadsheets like this are linked to each other, forming a chain. \u00a0<\/span><\/p>\n

The Blockchain updates itself every 10 minutes, it does this automatically and as soon as it is updated it can no longer be changed. All the computers on the network \u00a0are updated at the same time.<\/span><\/p>\n

Thus, the 3 principles of Blockchain became the backbone of Bitcoin and the Blockchain we know today was born, as well as the world of other cryptocurrencies.<\/span><\/p>\n

\"hsblog-inner-img2-01112018-compressor\"<\/p>\n

Blockchain is truly revolutionary and has the potential to revolutionize nearly every industry. As a driver for transparency across the digital information ecosystem, it is boosting awareness across sectors ranging from infrastructure to public policy. Small and mid-sized companies can use it as successfully as large companies. Blockchain based business are being launched all over the world, from transportation, logistics, messaging apps, banking, music and entertainment and so on.<\/span><\/p>\n

Industries transformed by Blockchain<\/h3>\n

\"hsblog-inner-img1-01112018-compressor\"<\/p>\n

The impact of distributed ledger technology is far greater than what most of us visualize currently- we have just begun to scratch the surface of what\u2019s truly possible.The first phase of digital revolution brought us the Internet of information. The second phase powered by Blockchain Technology – has brought the internet of value. <\/span><\/p>\n

What opportunity do you see for Blockchain to disrupt and improve your industry?<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Have you ever wondered about the technology that underpins Digital currency like Bitcoin, Litecoin, Ethereum etc.? 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