Bitcoin and blockchain have a huge role in changing the way we visualize and use technology to our advantage. Over the course of time, blockchain technology has turned into a promising foundation for enterprise applications across different industries. Industries are using blockchain for tracking supply chain and logistics management, while some countries have adopted blockchain for identity mechanisms. 

Wasn’t blockchain meant to develop cryptocurrencies only? No, blockchain has many more functionalities, and decentralized application helps in expanding the uses of blockchain. With the global blockchain market slated to achieve the $69 billion mark by 2027, it is quite reasonable to think about decentralized apps or dApps. The following discussion helps you understand what a dApp is alongside an in-depth overview of how it works. You can also discover the pros and cons of dApps alongside examples of popular decentralized apps in the following discussion. 

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What is dApp?

The arrival of Bitcoin almost a decade ago spurred a new age in the development of blockchain protocols. Developers have been trying to refine and add some exciting new functionalities in blockchain protocols tailored for various use cases. Today, you can find a wide range of applications of blockchain in finance, gaming, web browsing, and even for collecting art. 

How is it possible to implement blockchain in so many different use cases? The answer would directly lead you to the dApp blockchain relationship. Decentralized applications or dApps are basically similar to traditional software programs, which run on blockchain networks rather than central servers. If you look for a technical answer for “what is dApp”, then it is basically an application developed over a decentralized network. The dApps are never under the management or ownership of a third-party authority, thereby ensuring decentralization. 

Before diving deeper into the components and working of a decentralized application, let us reflect on the popularity of dApps. As compared to the 25 dApps in 2015, we have more than 3600 dApps spanning different areas such as games, decentralized finance services, social media platforms, and many more. Furthermore, decentralized apps are responsible for almost $182.5 billion worth of user transactions annually. Therefore, one could clearly note that dApp is a significant topic in the world of blockchain. 

Want to learn about the fundamentals of dAPP development? Checkout Beginner’s Guide To DApp Development

Working of dApps

As we are discussing the dApp blockchain connection, it is important to dig deeper into the design of dApps. Decentralized applications include a frontend and a backend as the two important components in their design. The frontend helps in communicating with the user, while the backend code is basically a smart contract. Now, the smart contract is where blockchain jumps in the answers for ‘what is dApp’ and most prominently refers to the Ethereum blockchain. 

The front end of the decentralized application is actually the code executed on the user side of an application. It basically serves as the interface for communication between the user and the application. In addition, the frontend of dApps also includes a digital wallet that serves different functions. 

The digital wallet maintains a record of private and public keys of users for authentication purposes. In addition, the digital wallet helps in interacting with blockchain for management of blockchain addresses and cryptographic keys. The digital wallet in the dApp frontend also helps in triggering the execution of backend or smart contracts. 

The backend of decentralized applications brings an interesting twist with the use of smart contracts running on the server-side of the application. You have the backend of dApps on a blockchain where it is executed, and the backend of dApps is open source in nature. The smart contracts perform the specifically defined functions irrespective of the conditions in their surroundings. 

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Differences between Decentralized Apps and Traditional Apps

Twitter and Slack are some of the conventional examples of companies offering web applications. Traditional web applications also depend on the frontend and backend as the important elements in their functionality. However, traditional web applications leverage software that resides on centralized web servers rather than the local operating system of specific devices. The devices would leverage the Hypertext Transfer Protocol or HTTP for using coding messages to communicate with servers. So, the feed on the front end of the web application would come from data in the backend or web server of the company. 

A decentralized app uses a smart contract on a blockchain network as its backend. Blockchain is basically a network of multiple machines sharing the same transactional burden in a distributed network. You can find that a dApp leverages the same technology for rendering the page on the frontend. However, dApps differ from web applications in terms of their backend as they communicate with relevant blockchain networks by leveraging a wallet. 

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Significance of Wallets in Decentralized Applications

Suppose you are trying to find out answers to “What is dApp used for?” then you should take a look at how wallets serve as an important component in dApps. The wallets help in managing a user’s blockchain address alongside the cryptographic keys required for their identification and authentication. 

Rather than depending on HTTP protocols, the wallets are responsible for triggering smart contracts or the backend of dApps. The smart contracts would then interact with blockchain network and ensure the execution of transactions. Since smart contracts are programmable code that you can tailor according to specific use cases, the dApps can work for a wide range of use cases. 

Key Features of Decentralized Applications

Another key highlight that you should discover in discussions around ‘what is dApp’ is an outline of the key traits of dApps. Now, you have a clear impression of the basics of decentralized apps and how they work. So, this would be the best time to take a look at the following features of dApps which distinguish them profoundly. 

• Open Source

One of the foremost highlights of a decentralized application is that it must be open source in nature. You could not have one single entity in control of the application’s code. On the other hand, the code of the application should be completely autonomous and readily available for assessment. 

• Incentives

The next critical highlight of a dApp would point towards the requirement for generating tokens. Decentralized apps must have the capability for generating native tokens as proof of value alongside distributing the tokens as rewards. 

• Decentralization 

As the name clearly implies, decentralized applications differ from traditional applications in the fact that their backend runs on a decentralized blockchain. The dApp blockchain association implies the need for storing all operational records of the app on a blockchain. 

• Protocol Compliance

All the stakeholders in a decentralized application should express their agreement for a cryptographic algorithm to verify proof of value. 

Advantages of Decentralized Apps

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The primary understanding of ‘what is dApp’ led to some promising insights about their definition, design, and functionality. Decentralized applications are basically traditional web applications which you would run on a blockchain network. So, what does a dApp offer in terms of value for users? Here are some notable advantages you can find with decentralized applications. 

• No Downtime

The foremost advantage of dApps refers to the fact that there is no downtime with them. After deploying the smart contract on the blockchain, the network can always serve the needs of clients who want to interact with the smart contract. Furthermore, dApps can also ensure that any malicious actors cannot launch denial-of-service attacks on specific apps. Since a decentralized application runs on a peer-to-peer system, it will continue to function even if parts of the network architecture are non-functional.

• Censorship Resistance 

Another important aspect about dApps that expands the scope of answers to “What is dApp used for?” refers to censorship resistance. Decentralized apps do not allow control of the data and processes to a single entity. Therefore, it is impossible for any government or entity to block users from submitting transactions or deploying dApps, and even reading data from the blockchain. Without any specific individual or organization controlling a dApp, users have the advantage of complete freedom with dApps. 

• Trustless Computation 

The next crucial value advantage associated with dApp blockchain interplay refers to the analysis of smart contracts and predictable execution without any centralized authority. Decentralized apps establish the foundation of truly trustless systems as compared to traditional models. 

For example, you have to trust the financial institutions in online banking systems and assume that they would not misuse your financial or personal information. However, you don’t have to rely on a central authority anymore with a dApp as the smart contract takes care of everything. 

• Privacy

The most dominant advantage of decentralized apps, which clearly strengthens an understanding of ‘what is dApp’, is anonymity. You would find that a major share of decentralized applications does not demand the real identity of users. Rather than going through a complicated and lengthy signup process, users could access dApps with their Ethereum login credentials and a digital wallet. 

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• Data Integrity

Data integrity is also an important factor in expanding the possible answers for “What is dApp used for?” across various industries. With the power of cryptography, decentralized applications ensure the secure storage of data on relevant blockchain networks. Furthermore, the accessibility of public blockchain for verifying transactions also provides the assurance of reliability in data records. 

Risks with Decentralized Applications

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On the one hand, you have the dApp blockchain relationship establishing promising prospects for digital transformation. While you can notice the advantages of censorship resistance, higher availability, decentralization, and security, it is also important to note the potential setbacks with dApps. Here are some of the notable risks you can identify in the case of decentralized applications. 

• Maintenance 

Decentralized applications present many complications in terms of maintenance due to difficulties in the modification of code and data published on the blockchain network. Developers could not deploy updates to the apps, even in the event of identifying bugs or security risks. 

• Network Congestion

The issue of network congestion becomes clearly evident in cases where one dApp consumes an excessive amount of computational resources. As of now, the Ethereum network could process around 10 to 15 transactions every second. However, sending transactions at a faster rate could lead to faster expansion in the number of unconfirmed transactions.

• Centralization 

While a decentralized application might look like a solution built on Ethereum, it may feature some centralized traits. For example, some dApps could store the keys or other sensitive information on the server-side or execute sensitive business logic on centralized servers. 

• Performance Overhead

The next dominant risk associated with dApp examples would refer to the massive performance overhead and difficulties in scalability. Every node in the network has to run and store each transaction for ensuring the desired levels of security, reliability, integrity, and transparency in a dApp. Furthermore, the consensus mechanisms such as Proof-of-Work also consume time and resources. Therefore, the overhead with dApps is massively larger than the overhead of standard computation. 

• User Experience

Another notable setback for decentralized applications would refer to the difficulty in user-friendly engineering experiences. The average end-user would encounter difficulties in setting up a tool stack for interacting securely with the blockchain. 

Examples of Decentralized Applications

An introduction to dApps will be incomplete without mentioning a few popular dApp examples. Some of the common names among dApps that are popular today include Augur, BitTorrent, and Golem. Augur is one of the top entries among dApp examples, with more than 100,000 monthly visitors to its website. 

It is an open-source, decentralized prediction marketplace based on Ethereum, which helps in creating different prediction markets. On the other hand, BitTorrent serves as a decentralized file-sharing application, and Golem works as a decentralized marketplace for the purpose of renting computational power and resources. 

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Bottom Line

The popularity of dApps is increasing slowly as people and enterprises recognize their true functionalities. Decentralized applications have evolved considerably over the years owing to the innovation and creativity of developers. As a result, we can see many new emerging dApp examples tailored for different enterprises in varying sectors. 

The trick to understanding a decentralized application is to identify how blockchain serves as an important component in its backend. Rather than a centralized entity at the helm of things, dApps place a smart contract to facilitate transactions. However, dApps also introduce many setbacks, such as concerns of centralization and network congestion. Dive deeper into the world of dApps and learn more about them now! 

*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this article. Do your own research!

The post Beginner’s Guide: What is a Decentralized Application (DApp)? appeared first on 101 Blockchains.

Technology changes fast, and the ones who fail to keep up can risk the chances of being left behind. Even though Blockchain technology achieved mainstream application with the arrival of Bitcoin in 2008, it gained the identity of a real-world tech option in 2016 and 2017. The potential of Blockchain to transform information sharing across open and private business networks reflects on the long term promises with Blockchain Technology.

Therefore, many candidates aspiring to make a career in this emerging, futuristic technology search for Blockchain expert certification. If you want to pursue a certification in Blockchain technology, then you need to establish the right foundation. Many candidates often face difficulties in finding out the right certification to prove their capabilities as a Blockchain expert. So, let us dive deeper into the implications of a Blockchain certification with an understanding of the role of a Blockchain expert. 

In addition, a reflection on the benefits of Blockchain certifications in the following discussion can provide supportive insights. However, the most important highlight of this discussion would be the details of Certified Enterprise Blockchain Professional (CEBP) certification by 101 Blockchains. You can find out the valid reasons for which CEBP certification can be the ideal Blockchain certification you have been looking for. 

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Why Blockchain Technology?

One of the first things that come to mind when you think of Blockchain expert certification is the outline of roles and responsibilities for the same. What it is exactly that a Blockchain expert has to do? Before defining the role of Blockchain experts, let us reflect on the technology and its significance in the current scenario. The first thing you should know about Blockchain is that it is a public distributed ledger system based on a peer-to-peer network system.

The public ledger can be shared openly among distinct users for creating an immutable record of transactions. All the transactions are verified by other users on the chain, and it is added with a timestamp and linked to previous transactions on the ledger. With the addition of a set of transactions, the data with new transactions turn into new blocks in the chain. The updates in the transactions on a Blockchain happen through consensus between the participants in the system.

Also Read: How to Become Certified in Blockchain?

Most important of all, data once entered in the system can never be erased. Blockchain is a write-once, append-many technology, thereby creating verifiable records of all transactions on Blockchain. So, you can clearly notice the potential of Blockchain technology for transforming many conventional operations across multiple industries. This is one of the reasons for the rising focus on candidates with a Blockchain expert certification.

Early adopters of Blockchain technology are bound to encounter many setbacks in deploying the technology. Therefore, enterprises are likely to face the need for hiring Enterprise Blockchain experts with reliable indicators of their expertise. At this point in time, enterprises can face difficulties in ascertaining what exactly qualifies an individual as a Blockchain expert. The question is also tricky for candidates as they have to determine their end objective and find a certification that validates them as a ‘Blockchain expert’.

Who is a Blockchain Expert?

Common assumption states that an individual working with Blockchain technology for a longer period of time is a Blockchain expert. Some may also assume that an individual with a Blockchain expert certification is a Blockchain expert. However, it is important to have a general outline of a Blockchain expert to gain a clear idea of their roles and responsibilities.

A Blockchain expert is basically any individual skilled in the fundamental and professional concepts of Blockchain technology. Enterprise Blockchain experts possess in-depth knowledge regarding the working of Blockchain technology. Most important of all, experts in Blockchain technology can implement their skills and knowledge for building Blockchain-based applications tailored for business and enterprise requirements.

Professionals can achieve the ‘Blockchain expert’ credential through exhaustive training and certification exams to show proof of their knowledge. As enterprises gradually learn more about the importance of Blockchain technology, the role of a Blockchain expert also undergoes changes. Therefore, it is inevitable to find top Blockchain certifications focusing on a wide and diverse assortment of skill objectives.

So, the role of a Blockchain expert in present times also reflects on many other crucial responsibilities in the present scenario. For example, Blockchain experts have to create new approaches for using up-to-date actionable tools in the Blockchain ecosystem for guiding the business transformation of enterprises. With the formidable possibilities of mainstream adoption of Blockchain technology gaining momentum, enterprises would face a shortage of Blockchain experts.

Importance of Blockchain Certifications

In order to cater to the increasing demand of Blockchain experts, enterprises are likely to use Blockchain expert certification as a benchmark for determining the potential of Blockchain experts. Therefore, it is essential for every aspiring Blockchain professional/expert to find out what exactly a certification in Blockchain technology implies.

In general, certifications in the Blockchain ecosystem aim at the development and governance of specific standards for providing credentials to professional Blockchain experts. The certification shows that individuals with the credential have fulfilled or even exceeded the basic standards of a Blockchain expert. Basically, Blockchain certifications reinforce Enterprise Blockchain skills as unique and self-regulating professions.

It is evident that Blockchain certifications showcase the proof of the holder’s expertise and knowledge regarding Blockchain technology and the development of Blockchain-based enterprise applications and systems. A Blockchain expert certification also attests to the ability of an individual in the implementation of Enterprise Blockchain for business transformation. In addition to these aspects, top Blockchain certifications also serve the following functionalities comprehensively.

• Proof of Blockchain Expertise

Blockchain expert certifications prove the capabilities of credentialed individuals in the development of efficient Blockchain enterprises.

• Source of Advantage

Blockchain certifications offer an additional advantage to professionals over other non-certified candidates for prestigious Blockchain-focused jobs.

• Global Recognition

The best Blockchain expert certifications assure global recognition, thereby enriching the value of your Blockchain work worldwide.

• Opportunities for Better Pay

Blockchain expert certification also helps candidates to bridge the gap of Enterprise Blockchain skills and land up with high-paying jobs.

• Career Security

Blockchain is evidently a futuristic technology with long-term prospects for adoption. Therefore, Blockchain expert certifications can help you build your career with the assurance of job security due to the expected rise in the number of Blockchain jobs in the future.

• Additional Opportunities

Blockchain certifications also help individuals strengthen their knowledge about Enterprise Blockchain technology. Certified Blockchain experts can also pursue their goals of developing their own Blockchain-based business. For example, Blockchain experts can use their Blockchain knowledge and expertise to build and develop Enterprise Blockchains and take the enterprise’s success to the next level.

• Support for Career Development

An Enterprise Blockchain expert certification could also help you gain better opportunities for job assistance. The recognition for Blockchain experts with certifications can help them build their reputation on professional networking platforms such as LinkedIn. As a result, candidates can present a real-time impression of their capabilities and experience to potential employers on LinkedIn.

For example, potential employers can look for the Blockchain expert certifications of a candidate and the roles they have served before and after the certification to judge their capabilities. Most important of all, Blockchain expert certified professionals can also engage in technical and non-technical discourses regarding Blockchain technology in professional communities. As a result, they could gradually establish their identity as an industry/subject matter expert on Blockchain technology.

Target Audience for Blockchain Certifications

Therefore, one can clearly notice that a Blockchain expert certification has more value than general assumptions. The next important factor that may trouble any aspiring candidate is the ideal audience for Blockchain expert certifications. Do you really need Blockchain certifications for a promising career according to your existing skills and professional roles? 

Basically, you don’t even have to think of a career to pursue Blockchain certifications! Even if you are just keen on learning about emerging technology, then you can opt for Enterprise Blockchain certifications. Engineering students, application architects, cryptocurrency enthusiasts, security professionals, system administrators, investors, and many more roles could gain promising benefits with Blockchain certifications. 

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In addition, industry leaders and senior management professionals could also choose Blockchain certifications as a proven instrument for refined expertise. With so many benefits of Blockchain certifications, it is inevitable for candidates to focus on searching reliable certification providers.

Certified Enterprise Blockchain Professional (CEBP) Certification

Among the many vendors attempting to offer Blockchain expert certification, 101 Blockchains stands out as the top platform. The Certified Enterprise Blockchain Professional (CEBP) certification by 101 Blockchains is presently one of the widely-recognized benchmarks of Blockchain expertise.

Register now for the CEBP certification to become a Blockchain expert.

101 Blockchains has gained the reputation of being the leading, independent research-based network for the Blockchain ecosystem. Therefore, it is reasonable for aspiring Blockchain professionals to search for details about the CEBP certification by 101 Blockchains. A detailed reflection on the CEBP exam details can help us in understanding how it is easily one of the top certifications for you right now.

Ideal Audience for CEBP Certification

The CEBP or Certified Enterprise Blockchain Professional certification exam by 101 certifications is a Blockchain expert certification. Any individual who wants to work with Blockchain technology can choose CEBP certification. In addition, if you want to learn about the core concepts of Blockchain technology and the related ecosystem, then CEBP certification is ideal for you.

Furthermore, the CEBP certification is also suitable for you if you want to learn the approaches for Blockchain implementation. The CEBP certification could also fit perfectly with your requirements if you want to learn about business transformation with updated actionable tools in the Blockchain ecosystem.

CEBP Certification Exam Details

Basically, the CEBP certification program is designed particularly for proving an individual’s knowledge and experience in diverse aspects of Blockchain. The certification also tests the knowledge of candidates regarding the impact of Blockchain technology on various enterprise business goals. 

Most important of all, the CEBP certification fulfills the criteria of a comprehensive Blockchain expert certification by testing the abilities of candidates for practical engagement with enterprise executives. The certification tests the capabilities of candidates to address the goals of enterprise executives with highly efficient and feasible solutions.

The Blockchain certification cost with the CEBP exam is $397 USD, which also includes a CEBP training course. The CEBP training course provides four weeks of learning materials with three to four hours of study dedicated for each week. The modules of the CEBP course provide a detailed impression of the exam objectives in CEBP certification.

Before you proceed, check out our previous article to understand the Blockchain features.

Domains Covered in CEBP Certification Exam

Above everything else, the exam content of CEBP can showcase its comprehensiveness as an instrument for proving Enterprise Blockchain expertise. Here is an outline of the different exam objectives covered in each section of the CEBP Blockchain expert certification exam. 

1. Blockchain Technology Fundamentals

The first domain of the CEBP certification exam deals with the working of Blockchain technology and its notable features. Candidates have to learn topics related to concepts, features, and different variants of the Blockchain network for this domain’s objectives. In addition, this domain of the CEBP certification exam also focuses on working on smart contracts. 

Candidates must also learn about the approaches to improve their command over elements needed to evaluate the impact of smart contracts on traditional businesses. The outline of chapters in this domain of the CEBP Blockchain expert certification includes the following,

• Blockchain fundamentals
• Proof of Work
• Creation of chain of blocks
• Public and private Blockchain
• Smart contracts

2. Enterprise Blockchain Platforms

The second domain of the CEBP certification exam deals with an understanding of the significance of Bitcoin beyond the limits of cryptocurrencies. Candidates need abilities for determining the approaches for business transformation with Enterprise Blockchain for questions in this domain. 

In addition, candidates must also strengthen their knowledge and fluency in methodological approaches to strike the right balance between technical perfection and business feasibility in Blockchain-based solutions. The notable chapters covered in this domain of the CEBP certification are as follows,

• Ethereum fundamentals
• Hyperledger Fabric basics
• Corda basics

3. Blockchain in Trade Finance

The third domain in the CEBP certification exam largely reflects on the applications of Blockchain technology in the financial sector. Candidates would have to start with a brief overview of significant crypto-assets in Blockchain-based trade finance operations. One of the significant topics in this domain refers to the correlation between crypto-assets and cryptocurrencies.

Candidates have to master this aspect in the CEBP Blockchain expert certification for proving their capabilities to recognize fake news regarding cryptocurrencies. The module also includes topics on the use of crypto assets in certain Blockchain-based platforms for addressing the disruptive effects of Blockchain technology on trade finance.

In addition, candidates must also learn about the enterprises using Blockchain for managing trade finance operations in this domain. It is also crucial for all candidates to reflect on the existing use cases of Blockchain technology for this domain. Candidates would face questions on determining the ideal use cases suitable for certain business objectives. The notable chapters in this domain of the CEBP certification are as follows,

• Crypto assets and cryptocurrencies
• Ripple fundamentals
• Trade finance on Blockchain

4. Blockchain Applications

This is one of the most crucial domains in the CEBP Blockchain expert certification exam. According to market research of 101 Blockchains, Blockchain technology has the most prominent influence on supply chain management operations. Candidates have to prepare for topics on different ways in which Enterprise Blockchain technology influences supply chain management processes directly.

Most important of all, candidates have to learn about the different tools and their implementation in practical supply chain management use cases across different enterprises. Candidates would have to develop skills in the following chapters of the CEBP course to understand the Blockchain applications.

• Fundamentals of supply chain management on Blockchain
• Use cases of supply chain management on Blockchain
• Blockchain digital transformation

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5. Blockchain Use Cases

The final module of the CEBP certification exam clearly emphasizes on the practical applications of Blockchain. Candidates would have to specialize in practical insights on different use cases of Blockchain technology across different industries. It is also crucial for candidates to improve their knowledge of identifying the right tools for specific enterprise business scenarios. This domain basically validates the skills of a candidate in using Blockchain technology for real-life use cases they would encounter in different Blockchain-based roles.

Therefore, you can clearly notice that the CEBP certification is a comprehensive proof of a candidate’s Blockchain expertise. Apart from proving the conceptual knowledge of candidates in the Blockchain ecosystem, the Blockchain expert certification also tests practical knowledge.

One of the interesting highlights about the CEBP certification is the evaluation of candidates in specific hands-on assignments. So, candidates can get an all-round proof of their Enterprise Blockchain skills and knowledge with CEBP certification. As you all can notice, the CEBP certification does not stay limited to the general applications of Blockchain technology. So, the CEBP certification could be truly helpful in proving your identity as a Blockchain expert.

Also Read: 20+ Blockchain Use Cases 

Bottom Line

On a concluding note, the Blockchain certification cost with CEBP is the best investment you can make for your career. There is no doubt that Enterprise Blockchain is slowly gaining prominent acceptance in many industries owing to the benefits of security, anonymity, and transparency. Therefore, certifications such as CEBP can serve as viable career instruments alongside fostering your Blockchain knowledge and expertise.

The average certified Blockchain expert salary is around $137,000, thereby indicating the promises of a career in Blockchain technology. The best thing about Blockchain certifications like CEBP is the lack of any prerequisites. So, if you think that Blockchain can pave a prolific career for you, then you can get started right away with the Blockchain Free Course! All you need is a basic knowledge of computer science and motivation to explore the depths of Blockchain technology.       

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The transformation of organizational processes meant for core business operations, like introduction of new services, could be challenging. While it is difficult to adapt to the concept of change in certain cases, many market forces drive enterprises towards transformation. Blockchain is one of the prominent technologies which has been a driving factor for business transformation in various sectors. 

However, it is also reasonable to wonder about the impact of blockchain for business in different sectors. So, let us take a look at some of the top blockchain trends in 2022 and how they will influence businesses. In addition, the following discussion would also reflect on some of the examples of how to implement blockchain in business.

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Blockchain Trends to Look Out For In 2022

If you want to know how blockchain technology would change the way we do business, then it is important to reflect on current trends in the blockchain industry. An impression of the state of the global blockchain industry in 2022 could encourage many blockchain business ideas. Is it worth thinking of a business with blockchain technology? Let us take a look at some pointers to find answers.

• Staggering Growth 

The global blockchain market would grow considerably in the coming years. With accelerated demand for digital transformation, the use of blockchain for origination of new and enhanced business processes is increasing. Therefore, the global blockchain market could reach a value of almost $39.7 billion by the year 2025. 

• Blockchain Projects Will Go To Production

According to a survey by Gartner, almost 40% of the participants in the survey stated that they had at least one running blockchain pilot project. The predictions of Gartner also suggest that almost 30% of blockchain projects worldwide will go into production in 2022. 

• Banking and Financial Services Will Continue as Blockchain Favorites

Banking and financial services sector has been dominating blockchain adoption for quite a long time and will continue to do so. The decentralized nature of blockchain enhances the scope for blockchain business in the financial services sector. As a result, you can witness promising levels of growth in retailored financial services and contactless transactions. 

• Decentralized Finance

Another prominent trend in the blockchain industry that could generate prolific blockchain business ideas refers to decentralized finance. Decentralized finance or DeFi is basically the concept of decentralized ledger technology to drive financial inclusion by leveraging smart contracts. 

• Zero Knowledge Proofs

Blockchain is inherently favored for its cryptographic benefits. It is difficult to modify information in the blocks on a blockchain due to the cryptographic hash connecting one block to its previous block. Decoding the cryptographic hash function for unraveling the previous block is quite a humongous task. 

Imagine having to decode innumerable hash functions to unlock information from a blockchain. Now, blockchain trends have turned the focus towards Zero Knowledge Proofs of ZKPs as a trustworthy cryptographic mechanism. The introduction of ZKP-enabled decentralized apps will have a profound influence on the use of blockchain for business in 2022.

Influence of Blockchain on Various Industries

Now that you know the capabilities of blockchain to change the way businesses operate, it is important to reflect on industries affected by blockchain. Many people are eager to know ‘how blockchain is used in business?’ and a clear impression of examples of blockchain applications in different industries can help in finding the answer. Over the course of time, blockchain has been adopted across various industries with promising outcomes. Here is an outline of the different blockchain business ideas which have been transforming notable industries.

• Banking

The opportunities for blockchain-based businesses in the financial services sector are quite promising. Blockchain and banking have been going hand in hand for quite a long time. Blockchain could offer the same function as banks by offering digital, secure, and immutable ledgers. 

As a result, blockchain improves accuracy and flexibility for information sharing in the financial services ecosystem. Blockchain has the potential for disrupting the banking industry valued at over $5 trillion through disintermediation of key services offered by banks, ranging from clearance and settlement systems to payments. 

The most notable example of the influence of blockchain in the banking sector is evident in the case of Credit Suisse. It entered into a collaboration with New York-based startup Paxos for using blockchain technology in settlement of US stock trades. In addition, notable names in the financial services ecosystem have also shown promising examples of how to implement blockchain in business. For example, JPMorgan Chase ventured into the domain of blockchain with JPM Coin as a means for ensuring transactions among institutional accounts. 

• Borrowing and Lending

Traditional banks and lending institutions generally provide underwriting for loans on the basis of credit reporting. The centralized system of credit reporting can turn hostile for customers. Therefore, alternative systems leveraging blockchain for origination of cost-effective, secure, and efficient mechanisms for lending and borrowing can simplify the process considerably. The cryptographic security and decentralized database for previous payments could enable customers to apply for loans according to a single, global credit score. 

One of the notable examples of the application of blockchain in lending and borrowing using cases refers to Dharma Labs. It is basically a protocol for enabling developers with tools and standards required for developing online debt marketplaces. 

Another example of a blockchain-based technology influencing the domain of lending and borrowing refers to Bloom. It is a project focused on introducing credit scoring in blockchain with emphasis on development of a protocol for management of risk, identity, and credit scoring by leveraging blockchain technology.                 

• Hospitality 

Big hotel chains often lose 10% to 15% of total revenue in commissions to third-party booking services. However, blockchain business ideas in hospitality can help in removing intermediaries and ensuring that revenue reaches organizations directly. Small and medium-sized businesses in hospitality sector could find a subtle boost in direct provider-to-consumer interaction while reducing costs. 

One of the prominent examples of the application of blockchain-based business ideas in the hospitality sector is Winding Tree. The blockchain-based platform offers a decentralized, open-source B2B travel marketplace in collaboration with tourism offices, hotels, and airlines. Winding Tree has successfully collaborated with Air Canada, Lufthansa, Air France, and Etihad Airways. 

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What Does Blockchain Mean for Business Owners in 2022?

The impact of blockchain trends in 2022, alongside the potential of blockchain for ensuring value in use cases across different industries, could encourage any individual to start their own blockchain-based venture. However, it is important to look out for pointers on adapting effectively to the wave of ‘blockchain change.’ With many industries encountering disruption with blockchain business, executives need to reflect on the following pointers.

• Blockchain Transforms Complete Business Ecosystems

Blockchain has shown explicit potential for transformation of complete business ecosystems. Therefore, it is important to look at the long-term picture with blockchain digital transformation. Rather than aiming at short-term improvements in specific operations, tasks, or processes, business leaders must have a clear vision of transforming other facets related to their business with blockchain technology.

• Blockchain Success Relies on Collaboration

The next important pointer for enterprise leaders looking for answers on ‘How is blockchain used in business?’ is collaboration. The combination of complementary capabilities from different organizations could help in saving time as well as other resources. With the help of blockchain, enterprises could share information with each other and learn about the different ways of using blockchain. Collaboration on industry level could also help enterprise leaders discover opportunities for reducing risks of innovation. 

• Capitalize on Social Purpose

New business setups based on blockchain should capitalize on the identity of social purpose as a significant agent of change. The modern generation of customers is changing the ways in which companies create and deliver value. Therefore, blockchain business ideas in 2022 should emphasize sustainability and other market forces favored by modern customers. 

Internal Communication and Leadership is Essential

The success of blockchain-based business ideas in 2022 would depend a lot on collaboration. However, it is important to focus on the value of internal collaboration as a prominent tool for driving better momentum for innovation. Leaders have to take responsibility for recognizing potential members at each level and enable better prospects for engaging them with the transformation journey. Team members should have the capability for self-electing in the case of strategic change projects for achieving desired performance from them as a team.

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Final Words 

You can clearly notice the various ways in which the applications of blockchain for business can transform different sectors. The new trends of blockchain in 2022 substantial showcase focus on accelerated pace of digital transformation, financial inclusiveness, and improved security. Many notable enterprise players are joining the blockchain trend, and this has been a prolific source of inspiration for blockchain-based startups. 

The clear understanding of blockchain trends and the ways it affects certain conventional industries can guide aspiring blockchain startups. Most important of all, the pointers for understanding the domain of blockchain and adapting effectively to its changes are crucial for leaders. 

There is no doubt that blockchain is a futuristic technology and will continue to dominate the world of business in the coming years. However, it is important to understand how blockchain changes the way we do business to develop credible business ideas. Learn more about the fundamentals of blockchain and find valuable insights on building your own blockchain-based business.

*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this article. Do your own research!

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Blockchain is the newest technological intervention that has been garnering attention for various reasons. However, as an industry, blockchain has showcased prolific growth in recent years, with promising estimates for growth in the future. Blockchain completely transformed the approaches for data management and traditional methods of doing business in the digital world. With considerable advantages of security and versatility, various business sectors and governments have noticed the value of blockchain.

Therefore, aspiring individuals looking for a career in blockchain might turn towards the prospects of pursuing the job of a blockchain developer. However, it is important to find the different steps required for becoming blockchain developers in 2021. The following discussion offers you detailed guidance on how to become a blockchain developer.

What is the Role of Blockchain Developers?

One of the foremost concerns for any individual seeking blockchain developer jobs is the outline of job responsibilities. While it is reasonable to assume that blockchain developers develop blockchain networks and applications, there is a lot more to their work. The understanding of job responsibilities of blockchain developers can help in ensuring that you are prepared to earn the skills required for addressing them. Here is an outline of the basic roles and responsibilities of a blockchain developer.

• Blockchain protocol design 
• Designing network architecture for centralization or decentralization of data
• Backend development in relation to blockchain protocols
• Development of front-end designs on the basis of client requirements
• Development and monitoring of smart contracts

Basically, the work in blockchain developer jobs focuses on development of innovative solutions for challenging issues. Developers have to create solutions with better opportunities for command and control with adequate prospects for ensuring high integrity. Blockchain developers also carry out complex tasks such as analysis, design, development, and testing for specific service lines or product hardware of businesses. In addition, you will also have to take care of software design, selection of resources, and effective operating architecture integration. 

With the help of a trustworthy blockchain developer course, aspiring candidates can also learn strategies for addressing complex challenges. Blockchain developers have to work with the inherent limitations in legacy infrastructures. In addition, they need a clear understanding of technical implications related to implementation of decentralized applications and processes beyond the scope of conventional IT development skills.

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What Do I Need to Become a Blockchain Developer?

Speaking of skills, you must note the basic skills you need for becoming a blockchain developer. The following outline of fundamental skills required for blockchain developers can help you discover training priorities. 

• Data Structure

All blockchain developers need a prolific understanding of data structures. Blockchain developers have to interact with data structures for developing and deploying applications. Since a block is inherently a data structure, the knowledge of data structures could offer considerable support in understanding the underlying behavior of all components in blockchain. 

• Smart Contracts

Another mandatory addition in almost any blockchain developer course would refer to smart contracts. Smart contracts offer effective relief from intermediaries in the exchange of goods and services. They can enable transactions through configurable contracts which follow certain conditions.

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• Cryptography

Although you don’t have to be an expert in cryptography, you must focus on the fundamentals of cryptography. Learn about the basics of encryption and decryption along with the types of cryptography in blockchain, such as symmetric and asymmetric-key cryptography. Try to explore some of the fundamentals regarding hash functions before starting your journey to become a blockchain developer.

• Blockchain Architecture

Blockchain developers have to define the blockchain architecture type for their solutions according to client requirements. The different types of blockchain architecture include public architecture, private architecture, and consortium architecture. In addition, developers also need a detailed understanding of the crucial components in blockchain architecture. Some of the important elements in the blockchain architecture include nodes, miners, chains, and blocks.

• Programming Skills

Well, you cannot expect to become a blockchain developer without any programming skills. Blockchain developers are required to develop web apps in most cases. Therefore, aspiring blockchain developers need to familiarize with web development and develop fluency in blockchain programming languages. Some of the notable programming languages which blockchain developers should learn are Java, Python, and C++.

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Why Learn Blockchain Development – Reasons to Become a Blockchain Developer

Blockchain is popular, and many renowned businesses have adopted it. So, is that the reason for which you should pursue blockchain developer jobs? Here are some of the important reasons to clear your doubts about the career prospects as a blockchain programmer. 

• Lucrative Salary

The first and foremost motivation for an individual might point to the blockchain developer salary. Candidates are reasonably worried about the earning potential in the role of blockchain developers. It is right to know what you will earn after putting in the effort and dedication in preparing for the job. Interestingly, the average annual blockchain developer salary ranges between $150,000 and $175,000. With such a promising salary stub, it is difficult to ignore the proposition of pursuing a career in blockchain application development. 

• Support for New Technologies

Blockchain is expanding with the support for almost every new technology, which is popular in present times. Blockchain works effectively with artificial intelligence, Kubernetes, CI/CD pipelines, and cloud computing, and serverless architecture. Blockchain networks are improving considerably in terms of speed, strength, and efficiency. As the blockchain ecosystem expands further, developers could discover many innovative avenues for enhancing blockchain solutions.

• Bring Meaningful Change

It is also important to note that blockchain-based solutions have the potential for introducing massive life-altering changes. Smart contracts are changing the ways of access to financial services and traditional lending and borrowing mechanisms. As a blockchain developer, you could contribute innovative solutions which could change the quality of life for people. 

• Thriving and Supportive Community

Another important reason for becoming blockchain developers is the expanding and thriving community with highly supportive participants. The continuously growing blockchain community brings a lot of promises for beginners in finding answers to their troubles in the initial days of learning blockchain. Blockchain developers could discover a massive collection of tools and information for improving their skills. In addition, the community is also a trustworthy source for information on latest best practices adopted in the industry.

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Steps for Becoming a Blockchain Developer

If you are completely new to the domain of blockchain development, then you might wonder about how to become a blockchain developer. Without any previous experience with blockchain, it is definitely going to be tough. However, you can always rely on the following recommended pointers for getting through to your final objective.

• Start with Blockchain Basics

Know the details about blockchain, its origin, components, and its working. You could discover a wide assortment of blogs and independent research-based platforms for training in blockchain basics. Learn the meaning of basic concepts and terms in blockchain, along with the importance of each concept and term. Try to learn anything about blockchain you can take in at the beginner level before you move towards a blockchain developer course. 

• Develop Programming Skills

As a blockchain developer, you would need programming skills for developing blockchain applications. Efficient blockchain developers should develop the required skills alongside maintaining a thorough focus on learning languages such as Python, C++, Java, and SQL. 

• Familiarize with Blockchain Development

Try out some of the unique recommendations to learn blockchain development, such as Space Doggos and CryptoZombies. These platforms help you learn to program for blockchain applications with the help of Solidity code. Aspiring developers could hone their skills for writing smart contracts, thereby improving the possibilities of achieving fluency in blockchain development. Most important of all, these are practical and enjoyable methods in preparation for blockchain developer jobs.

• Go for Professional Training Courses

The most important requirement for aspiring blockchain developers would obviously bring a blockchain developer course into question. Professional training courses could help candidates learn about the basics required for the role of blockchain developers. In addition, the courses could also provide adequate training for blockchain developers to implement their skills in relevant use cases. Most importantly, professional training courses on blockchain development could also ensure training for candidates to communicate their skills effectively to potential recruiters. 

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• Earn a Certification

Professional blockchain certifications can easily help aspiring candidates land up in the role of a blockchain developer. Certifications serve as credible proof of an individual’s knowledge and skills for carrying out the job roles and responsibilities of blockchain developers. The training and efforts required for professional certifications for blockchain developers provide a competitive advantage for certified blockchain developers.

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Final Words

The impression of the journey to becoming blockchain developers shows that the destination is not impossible to achieve. With the right set of skills and guidance in your journey, you can discover how to become a blockchain developer with ease. However, it is also crucial to develop the basic skills required for blockchain developers and understand the reasons for becoming blockchain developers. 

Candidates must develop confidence for the job role of blockchain developers by reflecting on their job descriptions. Most importantly, candidates should find the right training course and certification to help them achieve their goals. Learn more about blockchain development and start your journey right now!

*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this article. Do your own research!

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Digital transformation is gaining pace in the aftermath of a global pandemic, and blockchain is one of the dominant factors fuelling the growth of digital transformation. The following discussion helps you dive deeper into some prolific ideas for a blockchain-based business or the applications of blockchain in business operations. 

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Why Consider Blockchain-based Business Ideas?

Before diving into the details regarding business opportunities for blockchain, it is important to understand the existing blockchain market. Blockchain is basically a collection of digital records, also referred to as a distributed ledger. The distributed ledger contains blocks connected to each other in a chain. 

Each block contains information regarding transactions alongside a link to the previous block, thereby avoiding any concerns of data tampering. The initial focus of blockchain applications largely revolved around financial services. However, the features of blockchain, such as the decentralized structure and immutable records, ensure prolific advantages such as efficiency, transparency, and security for companies in different sectors. 

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What Do The Numbers Say About Business Opportunities in Blockchain?

In order to find out innovative blockchain business ideas, it is crucial to go through some numbers showcasing their importance. Here are some statistics which can show how blockchain business ideas could be a favorable bet for you. 

• According to market research estimates, the worldwide blockchain technology market would garner revenue amounting to almost $39 billion by 2025. 
• The worldwide expenditure on blockchain solutions in 2022 is most likely to reach almost $6.6 billion USD.
• The US takes the lion’s share in the overall blockchain funding with 51%. 
• Almost 55% of applications in the domain of healthcare would adopt blockchain for commercial deployments by the year 2025.
• Gartner considered blockchain as one of the most disruptive technologies in 2020 after machine learning and artificial intelligence. 

Business Opportunities for Blockchain

Blockchain solutions have come out from the shadow of cryptocurrency and the hype with a formidable impact in sparking the interest of various organizations in blockchain business ideas. Collaboration with credible blockchain development agencies could help businesses tap into the true potential of distributed ledger technology. Let us find out the top ideas for applying blockchain in business with guaranteed assurance of value.

Blockchain in Retail

The global COVID-19 pandemic changed the face of the world in 2020. Among the many impacts of the pandemic, the rise in online shopping has also become one of the crucial highlights. Retail websites had around 22 billion visits in June 2020. Interestingly, these numbers were far higher than the peak holiday season traffic. 

With almost 12 million to 24 million ecommerce websites all over the world and continuously expanding numbers, many retail players are considering the possibilities for leveraging blockchain-centric business ideas. The applications of blockchain technology business ideas in the retail sector could include the following,

• Streamlining Transactions

Conventional financial operations depended on time-consuming, error-prone, and expensive processes for each transaction. However, blockchain-based selling and buying could simplify the payment process and reduces the time required for completing transactions. 

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• Reducing Complaints of Fraud

The Global Economic Crime and Fraud Survey 2020 by PwC reveals that almost 47% of companies had encountered an incident of fraud in the last 24 months. Hackers are known for taking control of legitimate accounts for using them to make purchases. Blockchain could help in establishing a trusted identity system which can create difficulties in accessibility for third parties. 

• Redefined Loyalty Programs

The success of loyalty programs is dwindling nowadays due to various factors. However, addition of a loyalty program to the ecommerce platform could help in boosting the average quantity in each order. Blockchain-based solutions could offer a safe environment for loyalty programs while ensuring seamless operations alongside reducing costs. 

Blockchain in Supply Chain Management

The business opportunities for blockchain in supply chain management  largely focus on the capabilities to address the concerns of complex tracking processes and unsecured payments in the supply chain ecosystem. Blockchain could provide unique ideas for applications in supply chain management such as the following,

• Supply Chain Security

The supply chain industry loses almost $50 billion in terms of annual revenue due to lost or stolen cargo. However, blockchain would ensure that it is impossible to tamper with data in a blockchain-based supply chain management system. As a result, it can reduce the risks of theft of goods or documents. 

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• Transparency and Automation in Settlements

The lack of third parties in blockchain-based supply chain management solutions ensures improved speed, security, and transparency in transactions. Consequently, blockchain-based supply chain applications could contribute to improved trust among the involved parties. In addition, smart contracts could also ensure automatic payments upon compliance with specific conditions of an agreement. 

• Better Tracing

Blockchain could ensure easy availability of information to all participants in the supply chain, beginning from product manufacturing to storage. The immutable records provide assurance regarding the standards of the products, thereby strengthening trust among different parties.

Blockchain in Healthcare 

The domain of healthcare is also one of the notable playgrounds for implementing innovative blockchain business ideas. A global pandemic showed us the faults in healthcare supply chains all over the world. In addition, the healthcare sector has also witnessed a profound number of data breaches in recent times. Blockchain business ideas for the healthcare sector could help in the following ways.

• Improved Traceability 

Various healthcare products have different countries as their manufacturing sites. The World Health Organization has stated that almost 10% of pharmaceutical products in countries with low-income and middle-income profiles are fake. The management of healthcare supply chain with blockchain could help in accessing information regarding trusted suppliers. It can also help in easier certification of the authenticity of medicines. 

• Efficient Storage and Safeguards for Medical Records

An average patient in the US would visit almost 19 doctors in their lifetime. The storage of medical records in paper-based formats implies that they are distributed across various facilities. Without a comprehensive database, you are most likely to lose important documents, which can lead to slower treatment and more errors. Blockchain technology business ideas in the healthcare sector could help in creating one dataset for all the health records of a specific patient. The secure encryption and processing of medical history on the blockchain can serve prolific value advantages. 

Blockchain in Education Sector

The different opportunities for implementing blockchain in business for the education sector have started gaining recognition recently. Remote teaching in digital platforms has expanded profoundly during the pandemic. Therefore, the interest in innovative technologies for the education sector has been increasing the demand for blockchain solutions in education. Here are some unique functionalities you can achieve with blockchain-based business ideas. 

• Simplification of Publishing Process

Many students, researchers, and even professors encounter rejection when they want to publish their content. While a paper might be perfectly sound according to specified requirements, pitfalls in the publication industry might keep it away from seeing the light of the day. Blockchain business ideas in education could offer platforms for scholars to publish their content to a broader audience while managing ownership rights. 

• Maintenance of Digital Records

The University of Melbourne began issuing digital certifications by using blockchain in 2017. The Massachusetts Institute of Technology also offered digital diplomas based on blockchain. Interestingly, blockchain-based records are immune to any modifications, thereby ensuring better longevity and security. Blockchain technology business ideas in education could ensure that an individual could get an academic certificate without intermediaries. Think of a platform that issues and stores diplomas, certificates, and the grades of a student, accessible with few clicks. 

• Protection for Open Educational Resources

The educational resources on blockchain come with timestamps and information regarding the author. In addition, you can also identify the different modifications introduced in the resources under question. The distributed ledger could help in identification of the time of document creation and identity of the creator. Therefore, original content creators always get their due credit with relief from concerns of plagiarism. 

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Bottom Line

On a final note, you could find diverse business opportunities for blockchain applications in different sectors. The inherent features of blockchain, such as immutability, transparency, and decentralization, make it a valuable technological intervention. The new applications of blockchain for profitable business ventures in 2022 can be related to any sector. In the retail sector, blockchain-based business ideas could improve loyalty programs and transaction efficiency. Blockchain business ideas for supply chain management could focus on improving traceability while boosting security of supply chain.

Furthermore, the ideas for leveraging blockchain in the healthcare and education sectors can emphasize on secure storage of records. Apart from the promising ideas mentioned here, you can also explore many other possibilities of leveraging blockchain for profitable ventures. You should start learning more about blockchain and its potential to drive value for enterprises. Discover what more you can do with blockchain right now!

*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this article. Do your own research!

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For a newbie, both might sound similar. However, that’s not true even when many people out there consider blockchain “just another database.”

Also, you will find people searching for blockchain vs distributed database? Is there anything called “distributed database”? Or blockchain is simply a distributed database? We will answer all of these questions below.

Blockchain is more than just a database, and this article aims to a detailed comparison of blockchain vs. database.

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Blockchain Vs Database: What Is Blockchain?

But, if you are new, don’t worry; we will cover blockchain in brief here before jumping into blockchain vs. database comparison. The basic definition of both database and blockchain will help us understand the blockchain vs. database comparison. Let’s get started.

Blockchain is a distributed ledger technology that enables a set of peers to work together to create a unified, decentralized network. The peers can communicate and share information or data with the help of the consensus algorithm. Also, there is no need for a centralized authority, which makes the whole network trustworthy when compared to other networks.

Let’s take a look at an example to understand how blockchain works. When one peer sends information to another, a transaction is generated. When this happens, the transactions need to validated using the consensus algorithm.

In this case, Proof of Work is used to validate the work. It ensures that no invalid transactions are passed into the blockchain. Blockchain is all about blocks. They are used to store transactions and other important information that is required to operate the blockchain successfully.

Timestamps are created to ensure that each transaction can be traced, backed, and verified by anyone. The whole system adds value and brings in new features such as transparency, immutability, and security.

What Is a Database?

With the idea of blockchain clear, it is now time for us to understand the database. The database, unlike blockchains, are a centralized ledger that is run by an administrator.

Databases also exhibit unique features, including the ability to read and write. Here, only the parties with proper access can do Write and Read actions. Databases also exhibit the ability to store multiple copies of the same data and their history. This is done with the help of a trusted, centralized authority who manages the server.

Centralization brings many benefits to the database. For example, it is easy to manage databases as the data is centralized. Accessing and storing data is not only easy but also fast. However, they also have drawbacks.

One of the biggest drawbacks is the chance of the data getting corrupted. To overcome the disadvantage, multiple backups are taken. But, that’s not always the case, as most of the entities always trust their owner and hence skip the backup data option. Another big drawback is how the data can be modified by anyone who is in control of the database itself. This can happen as the database is centralized in nature.

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A Technical View

Now, let’s look at the database more technically.

A database utilizes data structure to store information. All the data that is stored in a database can be queried using a special querying language known as Structured Query Language (SQL). A database can work with almost every type of data and help support all modern enterprises. Also, it can be scaled to support millions of records.

The history of the database is also rich. It started with just hierarchical file systems. It had severe limitations, and hence it then later adapted to the relational model. The relational model is useful and gives the owner the ability to work with different databases at the same time. Database management systems are used to organize databases effectively.

At the core, data elements are stored in tables. The table consists of fields that can record a different type of data, known as attributes.

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Private Blockchain Vs Database: Are these Same?

There are many different types of blockchain. For example, we have a private blockchain that works in a closed ecosystem.

This may sound similar to what databases are about, but they are fundamentally different. Private blockchain inherits all the properties that a blockchain has to offer, but it works in a closed environment. Only people who are allowed by the administrator can participate in the blockchain. The only similarity between private blockchain and database is the centralized aspect.

Blockchain vs. Database

With each of the terms clear, it is now time for us to make the actual comparison. We will compare both the technology using important pointers, where we will discuss how they compare. Each pointer will also contain examples to ensure clarity and understanding. So, without any details, let’s get started.

Please include attribution to 101blockchains.com with this graphic. <a href='https://101blockchains.com/blockchain-infographics/'> <img src='https://101blockchains.com/wp-content/uploads/2019/04/Blockchain-vs-Database.jpg' alt='Blockchain vs Database='0' /> </a>

Blockchain vs Centralized Database: Authority and Control

If we compare blockchain and database, the first thing that you will notice is how authority works. Blockchain is designed to work in a decentralized manner, whereas the databases are always centralized. This unique feature of blockchain gives it the leverage it needs to become the next generation of technology.

Decentralization brings in a lot of implementation changes to the current systems and processes used by the different industries. It empowers networks to work independently and removes any need for centralized control.

Databases, on the other hand, function completely based on the centralized aspect. No traditional database is powered by decentralization. If you are specifically looking for a decentralized database, then blockchain falls directly into the category.

Now you know about the difference between blockchain vs centralized database.

Authority in Centralized Database

Let’s take a deeper look into how centralization works in databases. An administrator is allocated to manage the database. The administrator has all the control over the database, which means that he can manage, modify, and control the database the way he wants. Without an administrator, the database will not function at all.

He is at the top and can easily create, modify, change, and delete the records. Other than that, they can also perform other tasks, such as performance optimization. It is an important task as a larger database tends to get slow over time.

When it comes to other users associated with the database, an admin can delegate roles to other users. Other users can manage the database according to the role that they are assigned. For example, he can assign a user to create new users. Other key functions, such as backing up the database, maintenance, etc., can also be done.

However, it is not simple when we take into consideration the different types of blockchains out there. The basic blockchain introduced in bitcoin is completely decentralized, but it cannot be implemented among businesses with private data and processes at stake.

That’s why blockchain evolved, and we have a different type of blockchain. Hybrid/Federated blockchain is the most common type of blockchain out there that solves the problem of private organizations.

Hybrid blockchains are permissioned, which gives organizations the full ability to customize their setup according to the requirement.

This is one of the biggest differences when we do private blockchain vs database. We will cover more about hybrid/private blockchain later in the article.

Also Read: Top 10 Enterprise Blockchain Implementation Challenges

Blockchain Database vs Traditional Database: Architecture

Architecturally, both blockchain and database are different. So, what is the difference between the blockchain database structure and the traditional database structure? Let’s find out. You can a

A database is based on client/server architecture. It is a highly successful architecture that can work in both small-scale and large-scale environments. Here the client is the receivers, whereas the servers act as a centralized processing unit. The communication between client and servers are maintained through a secure connection.

Blockchain, on the other hand, uses a distributed ledger network architecture. It is a peer-to-peer enabled network where each peer can connect with another using secure cryptographic protocols. As there is no centralized node, nodes can collectively take part in the consensus algorithm.

One of the most popular consensus algorithms is Proof-of-Work, which requires miners to solve complex mathematical equations to validate transactions over the network.

The database doesn’t require a consensus algorithm and is completely dependent on the centralized approach.

The administrator controls every aspect of the database and is highly centralized. It is also permissioned like hybrid blockchain, but not when compared to the public blockchain. This hopefully answers your question related to permissioned blockchain vs database. The table below also covers permissioned blockchain vs database. Now you what’s the difference between blockchain database vs traditional database.

	Database	Hybrid/Federated Blockchain	Public Blockchain
Type	Permissioned	Permissioned	Public
Control	Centralized	Hybrid with few features centralized	Decentralized
Architecture	Client-Server architecture	Closed Peer-to-Peer architectur	Public peer-to-peer architecture
Data persistence	non-persistence	Immutable	Immutable
Chance of failure	Yes	No	No
Performance	Extremely fast	Slow to medium	Slow

Blockchain Vs Database: Immutability and Data Handling

When it comes to data storage and handling, both blockchain and database work differently. In a traditional database, data can be stored and retrieved with ease. To ensure proper operation of the application, CRUD is utilized at the primary level.

CRUD stands for Create, Read, Update, and Delete. This also means that data can be erased and replaced with new values if needed.

Blockchain, on the other hand, works differently when it comes to data storage. Blockchain supports immutability, which means that data once is written cannot be erased or replaced. Immutability means that no data tampering is possible within the network.

Traditional databases don’t exhibit immutability and hence are more prone to being manipulated by a rogue administrator or third-party hacks.

In short, blockchain only supports two operations, Read and Write.

• Read Operations: Used to read or retrieve data from the blockchain network
• Write Operations: Used to add information and data to the blockchain network

Database Vs Blockchain Technology: Transparency

Another key property that blockchain offers is how anyone with the right tool can verify the data once written into the public blockchain. Transparency ensures that the public can trust the network.

Databases, on the other hand, being centralized, doesn’t support any form of transparency. Users cannot verify the information if they want to. However, an administrator can make a set of data public, but still, the data verification cannot be done by an individual.

Blockchain’s integrity is made possible thanks to the immutability it has to offer. Data, once stored cannot be corrupted or changed in any possible way, which means that the data integrity is maintained at any cost.

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Blockchain Technology vs Database: Cost and Talent Acquisition

When it comes to implementation cost, a traditional database is less costly when compared to the blockchain. Blockchain is a fairly new technology and hence is still evolving.

This also means that a business needs to do proper planning and execution to integrate blockchain into their process.

Also, any business that is already operating needs to adopt new technology. The change in approach is a serious business as blockchain requires end-to-end implementation and cannot be just integrated into an existing system as an add-on.

The traditional database is easy to set up and scale. They work with most of the existing processes and hence work out of the box on many systems. This makes it an excellent choice for businesses who want to quickly and cost-effectively want to set up their database systems.

However, if we look at a longer look at the cost associated with each technology, blockchain might provide a more cost-effective solution as peers mostly manage the network. Organizations don’t have to deal with the extra cost associated with handling the network, which can save a lot of costs.

The same cannot be said when it comes to talent acquisition. Blockchain is fairly a new technology, which also means that there is a limited amount of talent available to deal with the practical blockchain applications. The cost of the blockchain talent is also high, which can increase the cost associated with the implementation and maintenance of blockchain on the higher side.

Database related talent, on the other hand, is easy to get. They are also affordable, and even small business can afford the cost of hiring a database expert.

Read More: Blockchain Vs Relational Database: What’s the Difference?

Blockchain vs Database: Speed and Performance

The speed of execution is also a critical aspect that we need to compare both blockchain and database. Databases are known for faster execution time and can also handle millions of data at any given time.

Blockchain is considerably slower when compared to databases. However, it can be because blockchain is a relatively new technology and still needs a lot of time to evolve and match up to the standards of well-aged technologies such as databases.

When a transaction is carried out in the blockchain, it does all the things that a traditional database will do. However, it is slowed down because of carrying more operations, including the following.

Signature Verification:

Blockchain transactions, when carried out, are cryptographically signed using cryptographic algorithms. This step is needed to ensure that each transaction is valid and originated from a valid source. As it is a complex process, it takes time to carry out the process. Even though the whole blockchain application is fast, the signature verification can bottleneck. In comparison, a centralized database doesn’t have to go through the signature verification process, which makes them comparatively faster.

Consensus Mechanisms:

As blockchain is decentralized, it relies heavily on a consensus mechanism to validate transactions on to the blockchain. Also, the speed of consensus depends on the type of consensus method used. Some consensus method is faster than others, but overall, it adds more time before a transaction can be processed. Centralized databases don’t suffer from this kind of issue as they are centralized in nature. Each transaction is verified automatically by the database and can be executed way faster using a queue.

Redundancy:

Blockchain is a complete network where each node plays a crucial role. To ensure that each node can participate, each transaction information needs to be stored and verified by each node.

These three aspects slow down the blockchain. This means that databases are comparatively faster when it comes to performance.

Blockchain vs Database: Best Use Cases

Now that we have understood some crucial differences between blockchain and databases, it is now time we learn the best use cases for both of them.

Databases Use Cases

The best use case for databases is enterprise solutions or networks. The reason behind it is how the database operates and bring stability to the whole network.

Databases are undoubtedly user-friendly and are already supported by many popular management systems for developers and administrators. Even websites with millions of visitors rely on databases to serve content. Forbes, for example, uses a database in conjunction with high-end systems.

The scalability is what makes databases such a good choice for the enterprises out there. Also, systems such as stock exchanges that rely on fast operations must use databases for better data flow. However, blockchain also seems to do great in enterprise networks.

The blockchain is not ideal for storing a huge amount of numerical data that needs to be regularly used. Another benefit is how data is stored in a database. It doesn’t have to go through verification during the write or read process. What makes the database a great choice is how cost-effective it can be, especially if there is a need to do basic bookkeeping.

To sum it up, the best use cases for the database include the following.

• Apps or systems that utilize the continuous flow of data.
• Storing confidential information
• Online transaction processing that needs to be fast
• Apps or systems where data verification is not needed.
• Relational data
• Standalone apps

Blockchain Use Cases

Blockchain’s purpose is completely different. It is a peer-to-peer network that establishes two important things to its users, i.e., transparency and trust. The distributed ledger is what makes it unique. It can change how an industry works and enhance every single aspect of it. So, what are the best use cases for blockchain? Let’s explore.

Any system that requires proper verification can utilize blockchain. For example, B2B Business-to-Business transactions can benefit immensely.

This includes supply chain, inventory management, and distribution. The key here is transparency as it enables businesses to follow every single movement without introducing more complexity. However, blockchain doesn’t scale that much and can slow down systems when handling large scale data records.

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Another excellent use case of blockchain is permissioned networks. Permissioned networks such as voting can benefit from a decentralized approach and bring trust and transparency to the whole voting system.

Blockchain is also ideal for automating tasks within a platform. Smart contracts are introduced in the Ethereum blockchain, which brings in the ability to utilize stored procedures. If a certain condition is met, the code is automatically executed.

Ethereum blockchain also uses Proof of Stake (PoS), which is more efficient and less power-hungry.

To sum it up, the best use cases for blockchain include the following:

• Transfer value
• Storage value
• Monetary transactions
• Trusted data verification
• Voting systems
• Decentralized apps (dApps)

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Concluding Thoughts: Which One Should You Choose?

The choice of picking up your next data storage technology is not a tough one. We discussed the crucial difference between them, and both traditional databases and blockchain are the clear winners.

The database is a winner when it comes to utility, speed, and accuracy. However, blockchain is also a winner when it comes to innovation, verification, and automation.

Blockchain introduces a performance penalty because of its verification method. This clearly means that you should avoid blockchain where fast execution time is an essential factor. Databases are a great choice where the critical business process needs to be supported or scaled at the same time. The read and write process is also not simple when it comes to the blockchain, which makes the database more desirable for general purpose application.

In short, choose blockchain if you are looking for trust, transparency, and verification. Database, on the other hand, is ideal for high-performance apps or services. It is also an excellent choice for apps that require scalability. If you want to understand blockchain more thoroughly, you should check out our blockchain courses now!

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Before we dissect why blockchain will change the world, let’s begin with “what is blockchain.” Blockchain technology is a distributed and decentralized ledger system that offers transparency, immutability, and security.

Judging from the last few years of success, blockchain is here to stay and is slowly disrupting various industries. But don’t worry, disruption doesn’t always mean a negative impact. In reality, blockchain can help out in all the industries, getting rid of the flaws that plagued them in the first place.

So, any novice who isn’t familiar with the topic should use this guide to get familiar with the concept of blockchain and how it will change the world.

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How Will Blockchain Change the World?

Now that you know what blockchain is, we can move to how it can actually alter the course of our economy and business. The blockchain is a decentralized database where all the transactions are stored and validated that has value. However, the value can represent anything at all, like money, lands, jewels, etc. Forbes is already seeing the future and putting its faith in the new money. They believe blockchain will change the world.

But first, what kind of benefit does it beget? And how will it change the world?

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Peer-to-Peer Network System

Everybody has complete trust in the blockchain database as it’s not governed by any single organization, meaning it’s open. With blockchain technology, you can transact directly to its receiver, which indulges any third party.

Thus, it completely makes them pointless as you don’t need any other third party to validate any more. So, the impact of blockchain here is establishing peer-to-peer transactions rather than a client-server model.

No Centralized Control

Blockchain will change the world by getting rid of centralized control. No central authority can control your assets anymore. Although the public blockchain system is autonomous, a private blockchain system does need authentication to function. But it still can reduce the level of centralized control.

Over the past years, we have been seeing the unimaginable dominance of Google, Facebook, or Amazon in the market. Now they have the personal data of almost everyone in the world! However, blockchain can help you take back control of your own data.

Improving Privacy

Using the hash function and cryptography method, all the transactions are encrypted, and none can keep track of your transactions. In reality, this really helps to maintain privacy as no bad party can see the contents of your transaction even if they want to.

Full Transparency

One of the best parts about blockchain is that it promotes transparency. At present, most of our business models don’t offer this attribute. We can’t even get transparency from the government itself.

So, when blockchain offers a public ledger system where everyone can see what is happening, it can restore people’s lost trust.

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No Corruption

Blockchain will change the world by getting rid of corruption in our society. In reality, as we are still operating on legacy network systems and paper-based documents, it’s easy for fraudulent parties to alter them.

But blockchains are completely immutable by nature. It’s impossible to alter or change contents inside a block. If someone tries to tamper with it, all the nodes in the system will reject it instantly as it violates the consensus. Thus, it gets rid of corruption.

Blockchain Changing the Economy: New Monetary System

Another new feature of blockchain is slowly getting traction at the moment. It’s the change in the monetary system from centralized to decentralized. At the moment, many governments are interested in central bank digital currency models.

In the traditional method, the third party is the federal banks who issue “money,” which is a valuable entity in our consideration. But the federal banks don’t share their records with the public and controls the overall economy.

Moreover, transactions are often unreliable. As a result, financial fraud cases occur.

The problem doesn’t end here. Each country has a different currency of its own. So, there is no unified currency. People have to go through troublesome hurdles before they can use their money in a foreign land. Transactions take days.

Plus, the “all-seeing-eye of government” keeps track of every single penny you spend. Who wants someone to nosing his business? It’s a breach of someone’s privacy.

But with the invention of the CBDC model, now many countries are adopting blockchain and making a digital copy of their native money. Countries like China or the USA are already developing their solutions.

This will definitely change our social and economic status for good.

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When Will Blockchain Take Over?

If you are thinking about when blockchain will take over, you need to know that it’s already taken over many industries. Like supply chain, trade finance, insurance, and healthcare, many industries are adopting blockchain technology for their companies.

So, change has already begun. However, only when blockchain can get rid of its technical flaws can it start the mass adoption process.

Why Blockchain Will Change the World?

Well, we think it’s important to note down that blockchain will not only change the technological aspect of the world, but it will also affect the ways we function as a society. More so, blockchain is the change of paradigm, a way we can understand the world as a whole and not only parts of it.

How will blockchain affect the economy? The traditional ways are full of issues and, most of all, corruption. So, it was high time for us to adopt a technology that helps us to make our business models even more efficient. This is how blockchain can positively affect our economy.

Will blockchain succeed? We believe so! It is already showing positive outcomes in many projects. Also, many enterprise companies are investing a good deal into blockchain-based solutions. Therefore, the shift is not only beneficial for the people but for the companies too.

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Ending Note

Blockchain growth has been rampant in the past few years. You’ll see a lot of Blockchain applications recently. You can buy cars, homes, to healthcare services with cryptocurrencies now. Considering its ever-growing popularity, it can be simply assumed that blockchain will be the future as it solves every single problem the traditional systems have.

However, only time can tell us whether blockchain is suited for our future or not.

Most importantly, how it will really affect the world once it’s adopted worldwide. If you are just a novice in the blockchain realm and want to learn more about this technology, you can use our free blockchain course for it.

Blockchain is predicted to the technology of the future, so why would you stay behind the race?

*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this article. Do your own research!

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Let’s start with a question — How does blockchain technology work? Basically, a blockchain is a series of blocks containing data and which has a hash number and a hash number of the previous block.

On a technical level, you can say the same thing about a linked list! It is a type of data structure that ‘stores data’. That being said, what are the main differences between these two types of data-storing tools?

For those who are not so adept in the language of computer science, terms like data structure would hold no meaning. It’s quite normal for people who don’t have primary knowledge of computer science.

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What is a Linked List?

A linked list is a linear way to organize and store data where every single element represents a different object. You could call it a series of data of various types. In computer science’s language, a linked list is a data structure.

In a linked list there is a sequence. Each data element has a “pointer” assigned. Meaning, you could always trace the previous node of the list. Thus, the whole list works like a chain. By following the hash number, you could even reach the genesis node.

There is an interesting fact about it, you can find the parent node linking in the blockchain technology too. This is a key feature that makes the blockchains immutable. Once it is designed, it’s done!

What is Blockchain and How Is Blockchain Similar to a Linked List?

You must be already getting the idea of how these two have some noticeable similarities. The blockchain data structure can easily be said to be a linked list. While the linked list has the pointer function, the blockchain has the hash function. Each block in the blockchain has a unique hash number as well as the hash number of the previous block or the parent block.

Both blockchain and linked list adopt the same technology. They both have a genesis block that doesn’t have a previous hash number. So yes, blockchain does actually share a few characteristics of a linked list data structure. You can check out the core blockchain features to learn more about the technology.

However, there are some fundamental differences between these two technologies, as well.

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Blockchain vs Linked List: What are the Key Differences?

The first and foremost clash of blockchain vs linked list is that a blockchain has a hash function to identify the ancestor of a particular block. Whereas a linked list does the same function using a pointer function. Learn more about hashing in cryptography here. Also, if you want a more comprehensive knowledge, this detailed guide on cryptographic hashing should give you a vivid idea of how does hashing work.

Again, a blockchain is way more complicated in terms of structure. A linked list is a linear way of arranging and storing data.

Blockchains, for example, have Merkle Trees to store transactions and all the data related to the transactions. Moreover, these Merkle trees (or blocks) have a link to their parent hash with the unique hash number.

Moreover, a blockchain has some unique features. For instance, a blockchain is a decentralized, distributed, and autonomous digital ledger that can have numerous applications in our practical life. Data manipulation and tampering are nearly impossible as the system of the blockchain will allow it in sense. While on the other hand, a linked list is a simple way of structuring data.

How does the blockchain eliminate the risk of cyber-attacks?

Well, the copy of blockchains is distributed among the users within the network. So, everyone in the node is working as a validator. If someone tries to tamper with one copy, it will not sync with other ones. The other node will simply reject the unusual change. That’s how blockchain security safeguards against cyber-attacks and hackers.

A blockchain has the potential to create decentralized apps, decentralized organizations, a smart economy, and many more. Maybe the key definition of how blockchain functions raised the question of it being similar to the linked list.

Conclusions

So, that was a brief summary of the blockchain vs linked list debate.

Is blockchain a linked list?

NO!

A blockchain does possess some key characteristics of a linked list. But that’s it, essentially it is much more complex and has way more functionality. A linked list doesn’t have data validators who will safeguard the integrity of the linked list. Blockchain, on the other hand, is a fully functioning autonomous system.

*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this article. Do your own research!

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The distributed ledger technology (DLT) is the backbone of blockchain technology. All blockchains inherently use a distributed ledger to function. In fact, blockchain is one of the technologies under the umbrella of distributed ledger technology.

Of course, distributed ledger technology is a complex technology and requires a deeper understanding of multiple concepts related to this technology. This article tries to offer a brief introduction to the concept of DLTs.

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What is Distributed Ledger Technology?

Distributed ledger is a digital database that runs on a distributed network. It is spread over diverse locations, networks, and beyond boundaries. The main idea behind distributed ledger is that any central authority does not control it and hence offers transparency.

Each node of the network takes part in the distributed system. Each of them knows the ledger as they have an exact copy just like other nodes in the network. The distributed ledger systems are extremely fast. It doesn’t take much time to reflect change across the network.

Distributed ledger technology is an excellent choice in this age of cyberattacks. With a distributed ledger, it becomes hard for hackers to hack the database. This is because everything is transparent and it is easy to trace back to the hacker. Also, to hack, the hacker needs substantial computational power which might be not possible for almost the majority of them out there.

Unique Features of a Distributed Ledger

By using distributed ledgers, there is no need for centralized authority. A distributed network is all about decentralization. It is a network of ledger or contracts that is maintained by nodes. The nodes can be merged into blocks which makes it even easier to maintain larger distributed network ledgers. Without the need for a central authority, all the information stays secure.

However, to enable the distributed network, technology such as cryptography is required. The data can be used with the help of cryptographic signatures and keys. For further study, you should learn more about hashing in cryptography.

Anything that is stored on the distributed ledger is immutable. This means that once stored; it cannot be changed. Immutability makes it even harder for hackers to try to hack the distributed ledger network. Furthermore, the absence of the central authority means that it is also free from any intentional change as well.

Blockchain vs Distributed Ledger Technology (DLT)

Someone who is still learning the fundamentals around blockchain technology often makes the mistake of thinking DLT and blockchain as the same technology. Rather than making things complicated, you can remember one simple thing —

Blockchain is a type of distributed ledger but every distributed ledger is not blockchain.

While blockchain has a particular block structure, DLTs are not bound to follow the same structure as the blockchains. Distributed ledgers can follow different data structures. The same thing can be said about following a data sequence.

Another big difference is that blockchains MUST need a power-hungry consensus algorithm to function. But distributed ledgers don’t need a consensus algorithm. That’s why distributed ledgers also are less power-hungry and more scalable.

The main reason why distributed ledger technology is so compelling is the fact that it can be used to power blockchain. The blockchain is a specialized database that uses DLTs.

Want to learn more about the difreence between blockchain and DLT? Read here Blockchain vs Distributed Ledger Technology

Check out the following table on distributed ledger vs blockchain

Parameter	Distributed Ledger	Blockchain
Structure	A database spread across different nodes; can have different structures	Follows a particular structure consisting blocks and chains
Sequence	Can have different data sequence patterns, depending the technology type	Only follows the data sequence designed for blockchains
Need of Consensus	Doesn't need a consensus algorithm	Consensus algorithm is mandatory
Scalability	High	Low
Availability of Tokens	No	Might have token economy

Final Words

Distributed ledger technology is still in the infant stage, but that shouldn’t discourage companies to utilize it to make their business more effective. DLT is also incremental which means that it can be scaled easily. It can act as a cornerstone of future technologies and solutions that can make life easier for every one of us.

DLT solves a lot of problems that the current world is going through. Not only it is capable of storing essential data, but it also solves customer problems such as protection, integrity, speed, and so on. It also reduces the environmental footprint with the reduced use of paper.

*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this article. Do your own research!

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For someone new to the fundamentals of blockchain technology, it’s imperative to understand the basic difference between the two categories of blockchain. This classification is based on the level of permission a user gets when joining a particular blockchain.

Both the private and public blockchain come with different sets of advantages and disadvantages. It’s up to the user which of the blockchain type suits their particular needs and use cases.

This article will only focus on offering a brief comparison between private vs public blockchain. For a detailed overview, one should go through the detailed guides suggested throughout the article.

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What Are Private Blockchains? A Quick Overview

A private blockchain is the type of blockchain network where a single organization holds complete authority over who can join the network, access the nodes, and participate in the consensus algorithm. In short, the controlling organization has total control over the network. Due to this nature, a private blockchain is also known as a permissioned blockchain.

You might think that this type of blockchain goes against the fundamentals of blockchain technology. However, the network is based on a distributed ledger and the users with permission have full access to the nodes.

Higher efficiency, better scalability, and robust security are some of the strongest appeals of the private blockchain.

Notable Features of Private Blockchains

• Higher Efficiency — Due to the strict control from the authoritative organization, private blockchains have better resource utilization, thus ensuring higher efficiency. Also, it’s one of the biggest drivers for private blockchain use cases.
• Privacy — Private blockchains inherently focus on privacy and data security.
• Enterprise-Centric — As privacy and security are imperative for enterprises, private blockchains are better suited to tend to the needs of these organizations. Private blockchains enable the enterprises to safer internal ecosystems and function as a whole.
• Stability — Due to the lower number of users and transactions, private blockchains have superior stability over public blockchains.
• Low Transaction Fees — Private blockchains offer lower transaction fees due to the lower number of transaction requests.
• Safety — Due to the entry-barrier, unwanted intruders can’t access the network. It ensures better safety and a safeguard against any illegal activities.
• Better Regulation — The authoritative organization can easily outline the rules and apply regulatory steps to imply the rules.

Read More: What is a Private Blockchain?

What is a Public Blockchain? A Quick Overview

A public blockchain is a type of blockchain network that doesn’t have any restriction over the level of permission. Anyone can join the network, access the nodes, and participate in mining and consensus algorithm.

Public blockchains are fully decentralized, permissionless, and completely immutable — adhering to the fundamental features of first-gen blockchain networks.

Notable Features of Public Blockchains

• Truly Decentralized — A public blockchain doesn’t have any regulatory body — making it truly decentralized and distributed.
• Complete Transparency — Public blockchains are inherently transparent where has access to the ledger and participate in consensus.
• Immutable — When a block enters the chain, there is no way to alter or delete the block. It means the network is completely immutable.
• User Empowerment — A user of a public blockchain doesn’t have to adhere to any rules or regulation from a third-party, apart from the legacy rules of the network itself.

Read More: What is a Public Blockchain?

Private vs Public Blockchain: A Detailed Comparison

You might be looking for a blockchain network that is superior to all others. But that’s not possible as every type of blockchain network has some advantages and disadvantages. As a result, they all have suitable use cases.

For example, public blockchains are perfect for cryptocurrencies. Popular cryptocurrencies like — Bitcoin, Ethereum, Litecoin — are ideal public blockchain examples.

On the other hand, private blockchains are perfect at catering to the needs of enterprises. Large corporations like IBM, Microsoft, Alibaba — are great private blockchain examples. If you take a look at the top companies using blockchain technology, you’ll see that almost all of them prefer private blockchains over the others.

Hyperledger, R3 Corda, Enterprise Ethereum, Quorum, Ripple — are some of the well-known private blockchain platforms.

So, you see the choice is dependent on the blockchain business strategy and a particular company’s mission and vision.

Still, if you want a direct comparison, the following table should help you get an idea —

	Public Blockchain	Private Blockchain
Access	Anyone	Single Organization
Authority	Decentralized	Partially decentralized
Transaction Speed	Slow	Fast
Consensus	Permissionless	Permissioned
Transaction Cost	High	Low
Data Handling	Read and Write access for anyone	Read and Write access for a single organization
Immutability	Full	Partial
Efficiency	Low	High

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Final Thoughts

As you can see, there are a lot of differences in both of the technologies. In reality, both public and private blockchain is suitable for enterprises’ environments if you can take the features you want. Apart from these two basic types, there are other types of blockchain — i.e., hybrid and federated or consortium blockchain.

But in the end, the decision is entirely up to you. Hopefully, this guide will help you out in choosing the perfect one for your business.

But if you want to get into more details, then make sure to check out our free blockchain course to learn more about it.

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