BLOCKCHAIN TECHNOLOGY is a digital system created for documenting and storing data in a unique procedure that makes it hard or impossible to alter or hack the system. It is meant to serve as a ledger where data will be collected and stored in sections known as “BLOCKS”, this will allow the stored information to be referenced at any given time so long there is access to the internet. The language used in storing this data is known as “CRYPTOGRAPHY”.
There is almost no limit to the kind of data you can store in. Examples of such data are; cryptocurrency (digital money), media (music, pictures, videos), identity documents and transactions. All information is “DECENTRALIZED” (shared) across various nodes (interlinked blockchain devices). A blockchain uses a consensus algorithm that confirms that the transactions done within the network are authorized and validated to achieve all of these.
Types of BLOCKCHAIN:
PUBLIC: A public blockchain is a highly decentralized, permission-less distributed ledger system. Anyone who has access to the internet can sign in on a blockchain network to become an authorized node and be a part of the blockchain network. Examples are; Bitcoin and Ethereum blockchain
PRIVATE: A private blockchain is a less decentralized or permission-based blockchain system existing in a closed network. Private blockchains are often used by an organization or enterprises, where only specified members are partakers of blockchain network activities. Examples are; Ripple (XRP) and Hyperledger.
CONSORTIUM: A consortium blockchain is a semi-decentralized type of blockchain where more than one organization governs (manage) a blockchain network. Examples are; Banks, government organizations, etc.
HYBRID: A hybrid blockchain is a blend of the private and public blockchain concept. With such a hybrid network, users can control who gets access to which data is stored within the blockchain. The information can be made public when there is a need. Examples are; Foundations, charities and NGOs (Non-governmental organizations).
The use cases of BLOCKCHAIN TECHNOLOGY
Digital Identity; a unique identifier exists behind each cryptographic address or code. This represents the initiator or sender of the information in the blockchain Finances; Most financial Institutions now use blockchain technology as a means to aid the transfer and storage of financial assets. This greatly reduces the cost and provides security.
Healthcare; Medical records are stored in the blockchain because they can be referenced easily at any point in time.
Copyright protection; blockchain has been used to certify ownership of assets.
More exploration and discoveries are on the way.
This is the beginning of a new digital age.
PUFFERSQUADTM NFT uses two of these cases: Digital Identity and Copyright protection.