If you keep tabs on areas such as banking, investment, cryptocurrency over the last decade, you may be familiar with the term “blockchain”, essentially a digital ledger-keeping technology behind cryptocurrency. Likewise, when you are familiar with cryptocurrency, you may hear of Ethereum, the second-largest cryptocurrency in the market after bitcoin and most actively used in blockchain.
Let’s dig and learn more about the topics – what is blockchain, what is blockchain technology, how does blockchain work, how to become a blockchain developer, what is ethereum blockchain, etc.
Table of Contents
What is Blockchain and How Does Blockchain Work?
Blockchain is a database system that stores data in a way that makes it very difficult to hack the system. Blockchain gathers new information in a group called block, and once the block storage is full it is chained onto the previous block. Blockchain can be used to store various kinds of data but mostly used to keep a ledger for a transaction.
Blockchain was initially invented to keep track of all Bitcoin transactions. In cryptocurrency use-cases, blockchain works in a decentralized way and decentralized blockchains transactions are recorded with an irreversible cryptographic signature called the hash. The decentralized databases, managed by multiple participants are known as Distributed Ledger Technology (DLT).
What is Blockchain Technology?
Blockchain technology is a structure to store transactional data, called a block in multiple databases, called a chain, in a network connected through peer-to-peer nodes. All the transactions recorded in this ledger are authenticated by hash, safeguarding from tampering. Blockchain relies on key technologies such as cryptographic keys and a peer-to-peer network containing a distributed ledger.
Blockchain technology uses hash encryption to secure the data, depending mainly on the SHA256 algorithm. In blockchain technology, data entry to the ledger is called “mining”. Mining involves the generation of hash for a specific transaction.
By all means, blockchain ensures a higher level of security and can support various industries like finance, supply chain, manufacturing. Blockchain founders are working towards the expansion of blockchain technology and influence in various industries. Judging by the success, blockchain could rule the future digital world.
How to Become a Blockchain Developer?
Blockchain technology is still in its nascent phase. High demand, lucrative pay scale, and opportunity to work in cutting-edge technology are few notable reasons that make this career path worthwhile.
To become a blockchain developer, you should start with blockchain concepts, ideas, and architecture. Learn decentralization, the use of consensus in the blockchain.
Become familiar with glossaries and principles of blockchain. Learn cryptography, related algorithms and solutions, and blockchain ecosystem. Be familiar with real-time use cases.
To start coding, beginners are recommended to start with Solidity. Learn to create simple blocks, blockchain, implement genesis block, add the block to the chain, validate, and perform a test run. Subsequently, proceed with advanced features like Smart contracts, build the decentralized applications.
Many institutes offer quality courses on blockchain such as Imarticus Learning’s premier FinTech certification course that is offered in collaboration with SP Jain School of Global Management. This course teaches you multiple cutting-edge technologies including blockchain using hands-on training from industry experts, real-world case studies, and projects.
What is Ethereum Blockchain?
Ethereum is a blockchain platform with its cryptocurrency called Ether or Ethereum. It uses its programming language, Solidity. It is decentralized and is an open-source blockchain with a smart contract facility. Ether, the native cryptocurrency of Ethereum is the second-largest cryptocurrency after bitcoin by market share.
Ethereum is the most widely used blockchain. If we compare bitcoin to Ethereum, bitcoin is just a cryptocurrency, where Ethereum is a technology with its cryptocurrency. Both bitcoin and Ethereum operate on blockchain but Ethereum is far more robust.