Question

1.what is blockchain and Explain the types of blockchain

write about 500 words

Answer 1

BlockChain

Blockchain is a technology of the 21st century. In simple words, it can be described as a data structure to store transaction records while ensuring transparency, protection, and decentralization. If we go into deeper details, BlockChain is a chain of blocks with each block containing a set of records. BlockChain is a distributed ledger that means it has no regulatory authority. It is open to everyone in the network and once the records are placed over BlockChain, it becomes very hard and difficult to modify them.

Every transaction on a BlockChain is safe and secure with digital signature and encryption. Thus, it is not possible to alter the data on BlockChain. Consider an example where you are looking for an option to send some money to your friend who lives in a separate location. An existing option that you can normally use can be a bank or via a third party application like PayPal or Paytm. This option may cost an extra amount of your money as a transferring fee. Moreover here, you cannot ensure the security of your money as it is extremely possible that a hacker might clutter the network and steal your money. This is where Blockchain comes in.

Instead of existing options, blockchain is much easier and secure. The first benefit is that there is no extra fee involved as the funds are directly processed by you thus and not the third party. Moreover, there’s no chance of corruption of the information by any hacker as the blockchain database is decentralized and is not restricted to any single location meaning that all the information are public and decentralized.

Types of BlockChain

1. Public Blockchain - A public blockchain can be accessed by everyone without the need of any privileges or permission. Just with internet access, it is possible to download, access and check the overall history of the blockchain. Moreover, anyone can make transactions over it. An example of the public blockchain is the Bitcoin Blockchain. An advantage of Public blockchains is that it allows worldwide communities to transfer information openly and securely. And its disadvantage of it can be possible that rules around it are not executed rigidly, as the rules decided and applied initially have very little scope of modification in the later stages due to which the security may get compromised.
2. Private Blockchain - Access to Private blockchains are shared only among trusted participants. The overall control of the blockchain exists within the owners. Also, the rules once set can also be modified based on different factors and situations. This type of blockchain do generally used by large scale enterprises.