Want to know how blockchain works and what is the technology behind it? 👇
In this article, we explain exactly how blockchain is working. Blockchain is a new technology and only 5% of the world is still aware of it. To benefit from new technologies you should first understand how blockchain works. Here you can read about blockchain, web3.0, smart contract, Dapp, and the features. You also can know about blockchain development, web3.0 development and what is needed to have a successful project on the blockchain.
If you saw the news, you must have heard about Bitcoin, Ethereum, and some other cryptocurrencies or you may have heard about NFTs and their crazy prices, cryptocurrency market fluctuations and bear market. All of those that are mentioned are built on top of the blockchain and known as digital assets. That’s why it is important to know what the blockchain is and how it works!
A blockchain is a distributed ledger technology that records transactions across a network of computers. It can be used to store and transmit data in a decentralized, secure manner that is hard to alter or hack. In a blockchain, each block contains a record of multiple transactions, and once data is added to a block, it cannot be changed or removed. Maintaining a record of transactions is thus reliable and transparent.
The above paragraph is a technical definition of the blockchain technology. In simple terms it means you don’t need any bank, or any third party companies to store your assets when you are working on the blockchain. You just need a digital wallet!No one can limit your account, no one can ban any of your assets and you don’t need to worry about hackers! You can send digital dollars or an NFT to any person in the world just with 2 clicks. So that you can manage the whole business from your bedroom and sell your products all around the world and get the profit in US Dollars instantly.
For each transaction on the blockchain, the data of the transaction is recorded to all nodes and publicly available on the blockchain. This feature helps all business owners, companies and users to have transparent transactions and assure that the asset is delivered to the other user. There is no way back, there is no cancellation, and no edition on the blockchain.This feature known as immutability of the blockchain.
When you are using decentralized applications (Dapp) or also known as Web3.0 applications, you are writing to the blockchain. All nodes on the blockchain confirm the data, and if the data on all nodes are equal, your transaction is confirmed. All nodes on the blockchain have a copy of the whole blockchain data, and for each new record of transaction, they will compare the data. This feature will assure that the data on the blockchain is consistent and no one can change that. Also ensures that no hacker can hack the data and change them for their profit. The most secure network on the planet until now is the blockchain technology.
In simple words, a smart contract is a computer program that is a collection of code and data that is stored and executed on the blockchain. All cryptocurrencies like Bitcoin, Ethereum, or NFTs have their own smart contracts that are publicly available to everyone on the blockchain. Since smart contracts are deployed on the blockchain, by nature they are distributed and transparent. Any user can interact with a smart contract and execute its function. This feature makes smart contracts vulnerable to attacks.
Now, with regular applications, you can patch and redeploy apps frequently and get rid of the code issues. But once you have a buggy code deployed on the blockchain, it is extremely difficult to replace it. That is the reason to have an expert partner for blockchain development and Dapp development can help you in launching a successful project.
What is the role of smart contracts? Well, think of smart contracts as important building blocks that other users can leverage. Smart contracts are deployed in blockchain-specific languages such as Solidity.
Decentralized applications or Dapps deployed on the blockchain are a new breed of applications which are also known as Web 3.0 applications. Dapps allow users to trade digital art via Non-fungible tokens or NFTs. E-voting and identity management are specific use cases addressed by many upcoming decentralized apps.
Decentralized apps are also heavily used in the world of finance today. Many industrial-specific applications are also emerging in the field of legal supply chains and the internet of things. You can read about how blockchain works in the article that is published in Blockchain Notes
Until now, lots of big names in the fashion industry started their blockchain journey. These included but not limited to Gucci, Burberry, Faith Connexion, Balenciaga. Even some casual brands like Nike and Adidas are selling some of their limited edition products on the blockchain as NFTs. All of these are luxury brands that are hitting their all time high profit by selling their products on NFT market places.
Artists, on the other hand, can access the world class clients for their artwork by selling their work as an art NFT. Blockchain can be a really good opportunity for really good artists that don’t know how to make profit from their art.
Also, you can see the increase of the number of businesses accepting cryptocurrency around the world, especially Dubai, United Arab Emirates. You can get a legal license to sell your products by cryptocurrencies and NFTs.
Blockchain based businesses need a decentralized application which is a new form of applications that are based on the blockchain. Decentralized applications are also known as web3.0 apps which we will discuss in another article.
To launch your business on the blockchain, you will need a stack of experts of different technologies, also you will need a great team of marketing. As we discussed above, once your smart contract is deployed on the blockchain, there is no way to go back. There is no way to update the core functionality of your blockchain business, and if the smart contract is buggy, you might be hacked easily! Also, there are different coding languages and multiple APIs and libraries that are used in blockchain development. You may need a huge team of experts that you can trust on them and this costs you a lot. You will need a solidity developer, project manager, front end developer, web3.0 developer, API and backend developer, and many more. Each should have the knowledge of the Ethereum virtual machine, and each of them has to have the knowledge of blockchain development. These are the reasons that you need an expert team for your web3.0 development.
But, there is another way! Instead of hiring the whole team, you can outsource your blockchain development and consulting. A third party company that is an expert in the field, can show you exactly what should be done.
BlockchainFar is a legal company in Dubai,UAE that offers reliable blockchain and web3.0 development services. We never gamble on our reputation, and we make sure that you get the best options with the reasonable price. We have auditor partners that will audit the smart contracts before the launch.
BlockchainFar offers blockchain consulting, blockchain development, testing and maintenance of your business. We work transparently and build trust. You can read about how we work to know more about our engineered system. Please feel free to contact us in case of any questions about blockchain development.Let's build together.