Introduction to blockchain technology
The concept of blockchain technology was first given concrete structure in 1991 by Stuart Haber and W Scott Stornetta. These two researchers were working on a way where timestamps could not be tempered and hence they invented blockchain. But Blockchain technology got real recognition, not until January 2009, when Bitcoin was launched and only then the blockchain technology got limelight with the launch of this currency. There is a misconception among the general public that blockchain and bitcoin are similar things. Bitcoin is a digital currency produced with blockchain technology. Blockchain technology has its usage beyond the currency. Blockchain technology can be used by banks, used as a currency, in healthcare, a method to store records of property, applied in supply chains, and much more. You can expect that soon a huge army of blockchain would be deployed by mega organizations. Many companies and countries are introducing blockchain technology in their organization because of its numerous benefits such as a reduction in costs, confidentiality, hack-proof, time-saving among many other benefits. In such a scenario, blockchain is also emerging as a lucrative employment sector. Just like artificial intelligence, coding is gaining prominence, blockchain technology holds a bright future with multi-faceted applicability. Learning about blockchain through blockchain tutorial can make things easier for you. In this blockchain tutorial for blockchain developers, you will understand the basics of blockchain technology.
Blockchain tutorial for blockchain developers with the basic blockchain
In this blockchain tutorial, you will learn the basics of blockchain to help you become a blockchain developer. A blockchain is an increasing number of records, also called ‘blocks’, used to secure many kinds of transactions, and this ‘chain’ of the record is linked using cryptocurrency. This kind of storage is called a ‘digital ledger’. Each ‘block’ contains three things- transaction data, a hash of the previous block (because it is a chain and almost every block is connected with two blocks), and a timestamp. It is also the foundation of the famous cryptocurrency ‘bitcoin’. In this tutorial, you will learn the basics of blockchain, the difference between blockchain and bitcoin, key concepts, advantages, limitations, and components. Explore more in these blockchain tutorials.
What is a blockchain?
To put it in layman's terms, blockchain is a chain of blocks that contains certain information. Blockchain technique digitizes timestamps in documents in such a way that it becomes difficult or futile to temper with them. Blockchain is a decentralized way of transferring items such as currency, contacts, healthcare records, monitoring supply chains, and much more practical usage is underway. The whole information is encrypted using cryptography to maintain the confidentiality of the two parties. The participants in the network maintain data, and they together hold the power to approve any transaction on the blockchain network. Every participant to the network has the same copy of the ledger, which means if one ledger is hacked and changed, it will not match the rest of the ledger copies and discrepancy would be visible. If hacking is done on a large scale, it will consume a lot of time and participants would be alerted, due to which they will change the details together and the hacker’s efforts will go in vain.
Blockchain vs. Bitcoin vs. Cryptocurrency
- Around the world, we can see a lot of currencies such as the dollar, pound, euro, rupee, etc. In the same way, there are different types of cryptocurrencies in the market such as Bitcoin, Litecoin, Ethereum, Bitcoin Cash, Libra, Monero, Ripple, and many others. Bitcoin is the most popular one and one of the earliest cryptocurrency. Libra on the other hand is being backed by Facebook, the brainchild of Mark Zuckerberg.
- Bitcoin is a cryptocurrency. It was invented in 2008 by someone with the pseudonym Satoshi Nakamoto and it was released in 2009 as open-source software. Yes, no one knows 100% who is the founder. Bitcoin comes from bitcoin mining.
- Blockchain is the technology behind any cryptocurrency or Bitcoin Cryptocurrency. It can be said every bitcoin comes from blockchain technology but it can’t be said that every blockchain is used for bitcoin or any other cryptocurrency. Satoshi Nakamoto solved the problem of double-spending with the implementation of this technology in Bitcoin. There is more to read on this blockchain tutorial.
Components of blockchain
There are numerous terms that you might have read when reading about blockchain technology such as public and private key, peer-to-peer network, hash, genesis block, proof of work, etc. We’ll break down each term in this blockchain tutorial which will make it easy for you to start your journey of being a blockchain developer and by the time you get to know how to learn blockchain, you would already understand the basic blockchain.
- Block: It is one among many small components in an entire blockchain. It depends on what data is in a block. If it is a cryptocurrency then the amount transferred, information of sender and receiver will be present in a block, which later becomes one block of the entire blockchain.
- Hash: It acts as a fingerprint. A fingerprint is unique to everyone. The same goes for a block. If there is a change inside the block, the hash would change too. Every block will have a new hash and the hash of the previous block. This makes tracking the chain of transactions easy and any tempering can be found easily.
- Genesis block: It is the first block in the chain of blocks. This also means that it has no previous hash.
- Cryptographic keys: These are of two kinds, public key, and private key. The public key, as the name suggests is available for public consumption and anyone can see it. The private key is strictly for private use and losing it may lead to consequences. It is used to verify a transaction and ensure privacy.
- Peer-to-peer networks: When two or more personal computers are connected rather than going through a separate server or computer, the network directly and this is nothing but a peer-to-peer network. In blockchain technology, there is a distributed P2P network. When a new block is created by a user it is verified by every node (personal computer) and when verification is done, each node adds the new block to their chain.
- Proof of work: A hacker can temper with any block if he/she has sophisticated technology to calculate hundreds of hashes. Here proof of work mechanism is used. It is a set of computational algorithms that uses previous hash, transactional details, nonce (an arbitrary number to separate a block’s hash residence), and together with a 64 character long ‘hash address’ is produced. Producing a proof of work takes time, but verifying it is easy. A hacker has to generate proof of work for every block, making hacking tiring and cumbersome.
- Blockchain 1.0- Used for Currency- The concept of distributed ledger technology or DLT was used. Money was being created by solving computational puzzles and that’s what is used in Bitcoin too, the prominent and earlies cryptocurrency.
- Blockchain 2.0- Smart Contacts- These are free computer programs that can be executed automatically to check for conditions such as enforcement and facilitation. Ethereum is a prominent example.
- Blockchain 3.0- DApps- As the name suggests, decentralized applications. Its backend code is running on a peer-to-peer network. It uses storage and communication that is not held under a central authority.
Why blockchain technology is gaining popularity, what are the benefits?
- Unchangeable transactions: Blockchain technology can’t be tempered due to its chronological order. Transactions are added in chronological order to the ledger, which means that when a new block is added to the chain it cannot be modified or altered, or removed.
- Time saving: Transferring money can other financial transactions often take up to 3 days due to various circumstances and up to 5 days if it is an international transaction. Transferring money using blockchain technology takes up to 10-15 minutes. It doesn’t need to go through the lengthy process of verification, settlement, and clearance. Ledger data is shared among partners on consensus.
- Decentralization: There is no central authority or third party. Every node that exchanged blockchain data follows the standard of rules. All transactions get validated one by one.
- Automation: When the basic criteria of a transaction are met, it does the rest of the things.
- Safe and secure: It has a digital signature feature. No one can change the date of anyone else without that particular digital signature.
- Transparency: Any change in any block is on public display. This offers transparency.
Now that you know blockchain basics, here are some blockchain video tutorials for you to check out:
Blockchain developer bootcamp: This paid course gives an introduction of blockchain basics and covers bitcoin and etherum blockchain basics and advance knowledge, multichain blockchain and blockchain use case as well. Apt for how to learn blockchain basics and cryptocurrency. https://tutorialsdiary.com/courses/blockchain-development-bootcamp/
Learn blockchain for business: This increases your chance of becoming a recognized blockchain developer. Along with current business challenges learn blockchain basics , distributed ledger, blockchain transaction flow and much more with their blockchain video tutorial. Get this blockchain video tutorial at