Cryptocurrency Lesson 2: Blockchain Types and Applications

A warm welcome to Lesson 2 of this Cryptocurrency mini-series. I hope that you’ve already seen my OP3N content of Lesson 1 on Cryptocurrency here.

In lesson 1, there were some basics on Blockchain already mentioned. So, read that first. Now, let’s move with new content.

In this lesson, I will introduce you to some basics of Blockchain, how it works, its types and where blockchain is used in today’s world.

Blockchains

Blockchains are Decentralized/Distributed:

What does that mean? It means information is not stored in one computer or one server but is available on all systems of users/participants. This feature prevents forgery or stealing of information or data or records.

Note: Never mix any cryptocurrency with Blockchain. i.e., for example, Bitcoin is Currency and Blockchain is Technology. So, bitcoin needs Blockchain to operate.

Blockchain Applications :

Blockchains are used in the following: Internet of Things, Identity, Finance and Accounting, Digital Voting, Digital Payment, Stock Exchanges, Health Records, E.T.C.

Types of Blockchains include Public, Private, and Hybrid.

• Public: Available to anyone .i.e. participants of the system. Example: Bitcoin, Ethereum, e.t.c.
• Private: The access to a Private Blockchain will be limited to the parties involved in the creation of that particular network, or those granted access to it by the creating parties.
• Hybrid: Connection of various Public, Private networks. E.g. of hybrid blockchain: 1) XDC, created by a Singaporean company XinFin 2) Hyperledger, a common initiative of IBM, Intel and R3CEV.

Note: More in-depth concept will be given about blockchain, but before that, we need to cover some aspects first. Stay calm.

If you would like a video lecture of this lesson – Lesson 2 – then it’s available below.

By: Bijay Acharya on Twitter and Facebook