Blockchain Entry Level
Blockchain could be simplified as the image above. These components set a solid foundation which makes the technology become more and more popular and stable.
provides 2 core features
- irreversible database: this guarantee that when the data is inserted to blockchain, it is very difficult to be modify later
- asset-ownership proof: this define the way to prove something belong to someone on the blockchain
This component goes along with well-design data-structure in order to make querying data from blockchain easily and conveniently.Imagine that we need to check the balance of a specific user over millions users , and the operation must be done in several milliseconds -> algorithm and data-structure will make this become reasonable.
This is a long story about the origin of blockchain technology. The initial mission of this technology is liberating the finance systems from banks and others financial organizations manipulation. To achieve this mission, it requires a protocol to allocate/distribute the power as fair as possible to all of the participants. This power is measure by the possibility to add a block to the chain. The most popular protocols are Proof of Work and Proof Of Stake
It is also called utilities of the blockchain, without this layer, the blockchain has only one application which is storing/transferring asset from A -> B Some modern blockchain network has ability to run a customize program called Smart-Contract .In a word, the smart-contract enable blockchain to become a financial ecosystem such as stock exchange , fund managements or initial public offering( crowd funding)
Blockchain technology is a software that could mimic the real-world finance system.
It could cooperate with traditional financial organization to provide a better service quality and lower fee.