• Latest
  • Trending
“Trust and Security in the Blockchain”

“Trust and Security in the Blockchain”

October 19, 2021
Plataforma de pagos B2B Tribal se une a grupo de lobby Blockchain Association

Plataforma de pagos B2B Tribal se une a grupo de lobby Blockchain Association

June 27, 2022
Losses are tragic but investors have ‘fair warning’, Tether co-founder says

Losses are tragic but investors have ‘fair warning’, Tether co-founder says

June 27, 2022
ViaBTC Capital | Reasons Behind Solana’s Frequent Downtime: Design Flaws in the Gas Economy

ViaBTC Capital | Reasons Behind Solana’s Frequent Downtime: Design Flaws in the Gas Economy

June 27, 2022
Algorithmic Trading for Beginners: How To Learn & Start Earning | by Anastasia Nesterova | The Capital | Jun, 2022

Algorithmic Trading for Beginners: How To Learn & Start Earning | by Anastasia Nesterova | The Capital | Jun, 2022

June 27, 2022
Voyager Digital issues notice of default to Three Arrows Capital

Voyager Digital issues notice of default to Three Arrows Capital

June 27, 2022
How to Buy Monero | Where, How and Why

How to Buy Dogecoin on Coinbase [The Ultimate Guide]

June 27, 2022
The price of LUNA falls massively after the UST de-pegged from the US Dollar

MIR Price Prediction as the Mirror Protocol Rebounds

June 27, 2022
DOGE Creator Speaks on Expectations for Bear Market

DOGE Creator Speaks on Expectations for Bear Market

June 27, 2022
Why I Don’t Want to Be a Crypto Boy: Reflections and Takeaways from the 2022 Cryptocurrency Bear Market

Why I Don’t Want to Be a Crypto Boy: Reflections and Takeaways from the 2022 Cryptocurrency Bear Market

June 27, 2022
  • Contact Us
  • Privacy Policy
Monday, June 27, 2022
Mount Rushmore Crypto
  • Home
  • Top News
  • Crypto
  • Crypto Technical Analysis
  • Store
No Result
View All Result
  • Home
  • Top News
  • Crypto
  • Crypto Technical Analysis
  • Store
No Result
View All Result
Mount Rushmore Crypto
No Result
View All Result
Home Crypto Technical Analysis

“Trust and Security in the Blockchain”

Automatic by Automatic
October 19, 2021
in Crypto Technical Analysis, Top News
0
“Trust and Security in the Blockchain”
0
SHARES
1
VIEWS
Share on FacebookShare on Twitter


Part 3 — Blockchain 101

Related articles

Plataforma de pagos B2B Tribal se une a grupo de lobby Blockchain Association

Plataforma de pagos B2B Tribal se une a grupo de lobby Blockchain Association

June 27, 2022
Losses are tragic but investors have ‘fair warning’, Tether co-founder says

Losses are tragic but investors have ‘fair warning’, Tether co-founder says

June 27, 2022
Trust is the core element of the Blockchain, making it such a valuable technology

From the previous chapters, we got acquainted with some of the key elements the blockchain bases itself upon, and indeed are disruptive in terms of the approaching modern-day transfer of “value” issues:

  • TRANSPARENCY: each block of data is connected with the previous via the hash, allowing us to scroll back directly into the very FIRST TRANSACTION (aka “genesis block”);
  • this makes it possible for the whole transaction history to be fully visible and available in a decentralized manner (every node has a copy of the ledger) hence guarantee the INTEGRITY of the data;
  • IMMUTABILITY: once a block is submitted to the blockchain, its validation makes it PERMANENT and IMMUTABLE, hence impossible to alter and undeletable.
  • It’s correct to say that blockchain is a trustless solution in its entirety.

Is commonly thought that the blocks contain mostly transaction data, therefore the transfer of value in monetary term from one party to another.
But, as we will see later on, blockchain allows and facilitates the transfer and delivery of services, unlocking of content protected by digital rights management or other types of data manipulation such as changing the name on a land title, and privacy protection by, for example, facilitating the selective release of privacy-protected data to meet a specific request.

This transfer of value would not be possible if not through SMART CONTRACTS.

A smart contract is nothing more than computer code thought as a set of rules that get executed every time a type of event happens.

They come with a peculiar set of valuable features such as:

1) AUTONOMY: can be developed by anyone with no need for intermediaries, lawyers, brokers, or auditors;

2) EFFICIENCY & COST SAVINGS by removing intermediaries (efficiency gains);

3) BACKUP: providing a permanent record by allowing auditing, insight, traceability even if the creator is no longer in business;

4) ACCURACY by replacing human intermediaries with EXECUTABLE CODE (hence the process is ALWAYS PERFORMED THE SAME WAY);

5) PROCESSING SPEED: smart contracts can improve the processing speed of business processes that run across multiple enterprises.

Despite the name, smart contracts are not legally binding contracts.
Their main function is to programmatically execute business logic that performs various tasks, processes, or transactions that have been programmed into them to respond to a given set of conditions.

If the code for the smart contract needs an external source to determine if it has met its restrictions, it will use an ORACLE (a source of knowledge).

An ORACLE sends data from the outside world to a blockchain so specific data, like temperature, can execute the disbursement of money.

This would be useful if the smart contract were executing an insurance contract for crops. Following this example, the contract would look something like this: “If the temperature drops below 32 degrees for more than one hour, release $5,000 to John.”

for a more in-depth look at oracles, here’s a comprehensive and well-written article by Patrick Collins:
https://betterprogramming.pub/what-is-a-blockchain-oracle-f5ccab8dbd72

Smart contracts are indeed complex, but their potential goes far beyond the simple transfer of assets.

They can execute transactions in a wide range of fields, from legal processes to insurance premiums to crowdfunding agreements to financial derivatives.
They also have the potential to disintermediate the legal and financial fields by simplifying and automating routine and repetitive processes for which people currently pay banks and lawyers sizable fees.

There is no doubt that a lot of work still needs to be done towards a more efficient implementation and utilization of those protocols while reaching a common agreement within the legal framework, yet smart contracts are proven to better govern an agreement between two parties.

Because they use the public domain to govern an agreement, limited legal oversight and approval is needed, therefore creating an opportunity for contracts to be commenced more efficiently with fewer parties involved.

Check out our new platform 👉 https://thecapital.io/

https://twitter.com/thecapital_io

https://upscri.be/3c1144


“Trust and Security in the Blockchain” was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.





Source link

ShareTweetShareShare
Previous Post

French central bank pilots blockchain-based CBDC for debt market

Next Post

Ethereum Breaking This Barrier Could Spark a Significant Surge

Related Posts

Plataforma de pagos B2B Tribal se une a grupo de lobby Blockchain Association

Plataforma de pagos B2B Tribal se une a grupo de lobby Blockchain Association

by Automatic
June 27, 2022
0

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.The...

Losses are tragic but investors have ‘fair warning’, Tether co-founder says

Losses are tragic but investors have ‘fair warning’, Tether co-founder says

by Automatic
June 27, 2022
0

The cryptocurrency market is still navigating a severe crypto winter that has wiped off billions of dollars in market value...

ViaBTC Capital | Reasons Behind Solana’s Frequent Downtime: Design Flaws in the Gas Economy

ViaBTC Capital | Reasons Behind Solana’s Frequent Downtime: Design Flaws in the Gas Economy

by Automatic
June 27, 2022
0

What is the gas fee? In the blockchain world, the gas fee is a fee that users have to pay...

Algorithmic Trading for Beginners: How To Learn & Start Earning | by Anastasia Nesterova | The Capital | Jun, 2022

Algorithmic Trading for Beginners: How To Learn & Start Earning | by Anastasia Nesterova | The Capital | Jun, 2022

by Automatic
June 27, 2022
0

Pic credit: www.freepik.comThe story is originally published on thecapital.ioAlgorithmic trading is a type of trading that uses computer programs to...

Voyager Digital issues notice of default to Three Arrows Capital

Voyager Digital issues notice of default to Three Arrows Capital

by Automatic
June 27, 2022
0

Crypto exchange Voyager Digital has issued a notice of default to hedge fund Three Arrows Capital (3AC) for its failure...

Load More

Enter your email address:

Delivered by FeedBurner

Quick Navigate

  • Home
  • Crypto
  • Crypto Technical Analysis
  • Top News
  • Thank You
  • Store

Top News

Starbucks joins NFT party, UK government seeks stablecoin regulations and Crypto Twitter rallies behind cancer fighter, Hodler’s Digest: Apr. 3-9

Katie Haun’s VC Firm Leads $11M Round for Web 3 Community Platform Highlight

We Still Know Nothing About the Metaverse

© 2021 mtrushmorecrypto - Crypto Related News Blog

No Result
View All Result
  • Home
  • Top News
  • Crypto
  • Crypto Technical Analysis
  • Store

© 2021 mtrushmorecrypto - Crypto Related News Blog

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Do not sell my personal information.
Cookie SettingsAccept
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT