Hedera Hashgraph is the next generation distributed public ledger. The mechanism of the Hedera Hashgraph will be completely different from Bitcoin and Ethereum. Where Bitcoin and Ethereum are currently using the Conesus mechanism. Hedera Hashgraph will not be using the same technology, even they explored the new technique which will be ABFT (Asynchronous Byzantine Fault Tolerant).
ABFT (Asynchronous Byzantine Fault Tolerant)
From past few years BFT (Byzantine fault tolerance) has been standard for security in distributed systems. Byzantine fault tolerance means that honest members of a network can be guaranteed to agree on a common consensus, even if malicious members (Byzantine nodes) are trying to prevent that consensus, or trick them into reaching different conclusions. A system is BFT if it can guarantee that there will come a moment in time when all nodes agree on consensus, and they know they’ve reached consensus, and it is always the same consensus.
BFT means achieving this even while allowing for a wide range of faults or attacks. Byzantine faults include behaviors like lying, collusion, and selective non-participation. Clearly it will be harder for a set of nodes to come to valid consensus under these sorts of errors, compared to simpler scenarios where nodes may just crash.
Hyperledger also used the same system for Fabric and other flavours of Hyperledger. And one of the famous mechanism is PBFT (Practical Byzantine Fault Tolerance) and RBFT (Redundant Byzantine Fault Tolerance).
But above all the ABFT (Asynchronous Byzantine Fault Tolerant) is the strongest one. In a distributed system, Byzantine Fault Tolerance refers to the ability of the system to retain honest consensus in the network despite malicious nodes failing or manipulating with the false messages. Asynchronous Byzantine Fault Tolerant means that it can achieve consensus even if malicious node control the network and start altering the transactions. The Hedera Hashgraph consensus mechanism does not use a leader format as with the round-robin system of practical Byzantine Fault Tolerance, which allows it to be resistant to DDoS attacks aimed at leader nodes or small subsets of nodes.
In ABFT the whole system will start identifying which transaction happened and when it happened. Through this they can achieve verify the transaction easily and in better fashion.
Another advantage of Hedera Hashgraph is Fairness. It means that every transaction will be broadcast to all the nodes which are participants of the Hedera Hashgraph network. And the transaction order and time-stamp will also be accurate. This means that it does not have the transaction pool where all the transactions are being saved and after a certain period of time they will be mined. And miner decides which transaction they want to calculate. If you’re providing lesser fees there are chances that your transaction will take time to get confirmed. But in Hedera Hashgraph the transactions are being calculated once they released or broadcasted to network the system does not allow to choose any particular transaction on the basis of time and execution cost. This makes this system faster than Bitcoin and Ethereum.
To perform this action Hedera Hashgraph is using a Gossip Mechanism. In Gossip Mechanism instead of broadcasting transaction message, Hedera Hashgraph broadcasting the state to the network.
Amazon was a tough start in the late 1990s. But soon after e-commerce become popular and relaible platform for the consumers. And many other organisation start coming on this platform such as Amazon, eBay and Alibaba dominate the market. Although there are a lot benefits of e-commerce platform on the blockchain, but apart from this there is a dark side of e-commerce.
Seller need to pay high commission charges to the e-commerce platform for selling their products but they don’t have any special privileges to grab the audience attention. And they need to pay these charges for each platform. And these fees is really high. Additionally there are further charges for payment processing of credit card and paypal.
With conventional e-commerce organisation, the platform and company behind it act as watchman who limit communication between buyer and seller. Merchants struggle to build a long-term relationship with customers, since the marketplace company does not want them trading outside of its e-commerce platform. Communication is often restricted, or takes place within strict parameters, and the platform is able to view any messages exchanged between buyer and seller.
Use Of Personal Information
Each and every large online e-commerce service use personal data of its users it in various ways, from advertising through to selling it or sharing it with 3rd parties. Additionally, data breaches are an all-too-common occurrence. Personal data has been called the oil of the internet, and its value makes it a popular target for hackers. Although GDPR has somewhat improved matters, in many jurisdictions the laws around data use are far less clear. There may be no straightforward procedure for how companies should act in the case of a data breach, and they may not tell their customers that their personal information has been compromised for months, if at all. In short, data loss has gone from being an embarrassment or inconvenience for a company to little more than the price of doing business.
The Benefits Of Crypto Integration
Blockchain and crypto-currencies offer plenty of solutions to these problems. However, bitcoin was the first currency which made the Blockchain so much popular but over the time, Blockchain has also evolved and explored the new solution for different challenges.
The first fully decentralised market places are now taking shape. These aim to replace the entire functionality current e-commerce platform with a blockchain-based solution, using DAPP(Decentralized Application) to recreate the backend and inventory database. For example, BitBoost is exploring one such platform on the Ethereum network. One of the advantages of this approach is that it enables a completely different business model, which does not charge commission fees — it is a decentralized approach that does not involve a organization or require any watchman.
Merchants with their own website-based solution, there are still a lot of benefits on integration of cryptocurrency as payment gateway as an alternative or add on for traditional payment methods such as PayPal or credit cards.
When you start taking about the crypto-currency they can reach anywhere at anytime that’s why they also known as border-less payment gateway . So it really doesn’t make any difference whether you are buying a product from local store or another side of the world. That quickly overcome one of the major problem of fund transferring. (Banks will charge additional fee for foreign payments, and offer an exchange rate that is far from the market spot price — an extra stealth charge.)
This further can be used with the other processing resources of the E-commerce platform such as the shipping provider.
The major benefit of blockchain technology is that it eliminates the risk of distrust factor between all parties. It removes the problem of payment disputes or order details. It also makes the system tamper-proof.
Merchants also get benefited from crypto’s irreversible transactions, which ends the fraudulent chargebacks. There is no reverse payment processing mechanism, it is beneficial when a customer makes false claims they never received an item. At that time we can track back the transaction log from merchants to customers and find out the reality.
Everyone is looking for the Blockchain implementation without knowing the Understanding Blockchain Priorities and the technology preferences. Now we not only have a single Blockchain where we start implementing our project. There are a variety of the Blockchain flavors available in the market and every flavur has its own feature and function.
Public Blockchain: There are a variety of Public Blockchain available in the market but few of them are open for you as a developer. Bitcoin is the most popular cryptocurrency who used the Blockchain platform to provide the 1st cryptocurrency to the world. But as developer bitcoin is not open to deploy your data on it. To overcome and provide additional benefit Ethereum came into the market, Ethereum launched on 30 July 2015, which has 72 million coins.
It is the 1st ever platform who provided the smart contract deployment.
Now the next question in your mind is “What is the Smart contract?”
Smart contract is “a computerized transaction protocol that executes the terms of a contract“. It means that you can write your own code which will get store and perform action on Ethereum.
Yes you’re correct that ethereum is that platform where you can deploy, run and Save your data. And building these application are known as DAPPS ( decentralized applications).
As technology is developing day by day and world is gaining attention towards the Blockchain.
Many of you will think that why Ethereum will save our data, what’s the benefit of this.
The 1st main benefit of Ethereum is gaining the Audience attention. As you all know that who so get popular the demand of that thing will go up.
So indirectly Ethereum prices are going up. By deploying and running your Dapps.
We all know that there is no free lunches in the world, in case of Deploying your Smart contract you need to pay the Execution cost of Smart contract. The cost is entirely depend on your Smart contract , the Logical Approach you choose for Writing the smart contract.
But as the prices of ethereum going up there are several other Coins are giving same benefits as the ethereum providing like TOMOCHAIN. These are very cheap in comparison of Ethereum and proving the same benefits as Ethereum providing it to you.
Public Blockchain mainly provides benefits when you need to have the audience attention in terms of Security, Transparency and immutability.
You can also create your own currency like ethereum. They have open there technology and you can have your own currency in less than 30 minutes.
Apart for this you can also have the Private Blockchain. Private is completely opposite with the Public Blockchain.
This is because of the Functionality of Private Blockchain used to develop the complete system.
In private Blockchain you can’t write, read and audit the data unless you are authorized for it.
Private Blockchains have it’s own owner’s. Owner of the Blockchain is a single entity or an enterprise which can override/delete commands on a Blockchain if needed. That’s why in its true sense it is not decentralized and hence can just be called a distributed ledger or database with cryptography to secure it.
The famous private Blockchain is hyperledger. Hyperledger is an umbrella project of open source Blockchains and related tools, started in December 2015 by the Linux Foundation and supported by big industry players like IBM, Intel, and SAP to support the collaborative development of the Blockchain-based distributed ledgers.
There are several different framework of Hyperledger are:
Although blockchain technology is not a new concept, in recent years, the cryptocurrency and blockchain bandwagon has left the world awestruck. They have managed to catch the fancy of investors, technocrats, and even the general public. Having the crown of being the hottest topic in 2017, the blockchain and cryptocurrencies are going to continue their legacy with even more awesomeness. Before we move on to our central discussion, let’s quickly go through our basic guide to blockchain app development and answer the main question every single person is asking:
What is Blockchain?
Developed by Satoshi Nakamoto in 2008, Blockchain is an ever-growing list of cryptographically linked records, called blocks. The digital information stored in blocks are paired to each other with a hash function, where each block contains the cryptographic hash of the previous one. The blockchain technology doesn’t require a central authority or server to execute its operations and thus is a transparent, immutable, and publicly accessible database.
How to become a Blockchain app developer?
Well, when we are living in an “era of blockchain”, there are a number of things that a developer should be aware of. As a serious developer, one should be very clear of the fact that learning blockchain app development is not a magical process rather is a continuous process that requires great dedication (whether it be resources, time, or sincerity). Keeping this in mind let’s dig into our central topic.
Understand the basics
The first thing that comes first for anything new is understanding the basics. A beginner should first acquaint himself with the key terms such as blockchain, 51% attack, distributed ledger, consensus mechanism, mining, etc. Although here it is not possible to cover all of them, you can refer the blockchain glossary section to grab up the key terms quickly. With this, the knowledge of cryptoeconomics and cryptography would be an added advantage if you are intrigued about these.
After this, it would be an injustice if you don’t study about how bitcoin works as it is one of the most sophisticated applications of the blockchain technology. And this gets even more important after seeing the impacts that bitcoin has on current situations.
Learn how the process works
After getting through the basics, the next step is to get some hands-on with the real-world scenario. How come can a developer work or develop on a platform that he hadn’t used before? So, it gets important that a developer gets acquainted with the current system. To start with it, you can go to any online exchange available for your country and buy some coins for your e-wallet. And this won’t be useless as the wallet services are available anytime and anywhere. Depending upon your choice, while you learn the whole process, you have the option to dive-in to the vast ocean of bitcoin.
As a blockchain app developer, there are a number of challenges that a developer might face. Unlike traditional app development, blockchain app development is a slow process. The top reasons that need to be taken into consideration are security, resource management, performance, and isolation.
While there are many platforms available for blockchain mobile app development, the top ones among them are Ethereum, Multichain, Hyperledger, IOTA, and Quorum. While choosing a suitable platform, the following should be taken into consideration:
Nature of platform: While some platforms are cryptocurrency-based others rely on smart contracts. Choosing a suitable type will definitely make the process easier.
Smart Contracts: It is a self-executing process that processes, enforces, or validates any trigger-based action stored on the blockchain system. Deciding whether to use this or not is an important step.
Cryptocurrency: If cryptocurrency is going to be used in your application then this plays an important role in deciding the platform.
Public/Private Network: Before creating your blockchain application, you should decide whether you want to allow everyone to make changes or want to grant only authorized user access.
Just like platforms, developers have the choice to choose between various programming languages. Where blockchain specific languages like Solidity and Simplicity are popular in the market, traditional programming languages like Python, C++, Java, Go, etc. are still fascinating developers. In fact, the Bitcoin source code was written in C++.
As a beginner you can start with creating a simple block that contains the following pieces:
Index: To identify the block number
Timestamp: To tell the time of creation
Data: The information that is to be contained in the block
Previous Hash: To know the hash of the previous block
Hash: To identify the hash of the current block
After you created a block, add more blocks and hence validate your chain to check that everything is stable and that nobody is messing with your blockchain.
Learn about Smart Contracts
According to Investopedia, smart contracts are “self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. The code and the agreements contained therein exist across a distributed, decentralized blockchain network.”
Anything that runs on a blockchain network should be immutable and must run through multiple nodes without compromising on its integrity. Because of which, smart contract functionality needs to be three things:
Deterministic: It simply means that a program is capable of giving the same output for the same set of inputs in different computers.
Terminable: Contracts must be capable of termination within a given time limit to prevent them from being caught in an endless loop that may drain resources.
Isolated: As there can be many contracts uploaded, so it is critical to isolate them in order to save the entire ecosystem from any negative effects.
Synchronize with technological updates
As development is an unending process so it is very important to be updated with the technological changes and it is even more important for budding developers. Being in the mix not only helps a developer fine-tune his skills but become an appealing developer. Blockchain is a technology that is going to have stunning impacts in the future and talented will be able to reap full benefits out of it.
Parangat is not just a blockchain app development company, but it is a team of experts who can extract out pearls from the vast ocean of blockchain.
The purpose of introducing new technology is to upgrade our very own systems and elevating them to a better stance. We could use a stick to stir the pot, but why do that when we can have one large stirrer that could mix, collect and pour the soup out of the pot. Same goes with the way we trade. We need trust. We need records. We need accountability for every paper we sign and every currency we give or take. And that has a cost. Our financial transactions and every legal, formal record we keep need to have the intervention of an intermediary, absence of which, the assets become vulnerable to theft or fraud. That’s precisely why Blockchain technology is taken seriously in the tech world as the new foundation on how we develop and do business. It’s tough to break down the entire process of blockchain into layman terms. Let’s get technical on how does blockchain technology works.
Hash – The nuts and bolts of blockchain
First things first, Bitcoin is not Blockchain. However, it uses blockchain technology to function as a cryptocurrency. Blockchain Technology, on the other hand, is an open and public ledger. This ledger can also be distributed and kept as a copy. In this chain, each block has three major component. The data, hash of the current block, and the hash of the previous block. The first part of the block that is the data entirely depends on the type of the blockchain. In the case of Bitcoin, the blocks record and keep the details of the sender, receiver and amount of coins which is the entire transaction itself. A block has a hash that could be equated to a fingerprint of the block. It effectively recognizes the contents of the block and is always unique. The hash of a block is initiated into calculation as soon the block is created. If you alter or modify something inside the block, the hash changes. This behavior of blockchain technology makes it useful for detecting changes in a specific block. If the hash of the block alters, it is transformed into a new block. You also have the hash of the previous block in each block. All the infusing of these three crucial elements makes this a blockchain and precisely why it is so secure. The first block that results in a subsequent blockchain is termed as the genesis block. If someone tries to tamper with the second block in the chain, the hash changes again. It will be a stupid and a reckless move because the third block and all rest of the block will be invalid because they can no longer read the hash of the previous block.
Proof-of-work – The shield and saviour
But if you look at it, hashes aren’t the only shield against tampering. You have hackers and data frauds equipped with supercomputers that can count thousands of hashes per second. They can easily tamper a block by recalculating the hashes of every other block so that it can transform into a valid blockchain. In order to save the entire blockchain from this apocalyptic recalculation, we have Proof-of-work for every block. It is a super mechanism that steps in and slows down the whole process of recalculation and revalidation that leads to tampering. In Bitcoin, the stipulated time to calculate the proof-of-work is approximately 10 minutes. Only after the calculation, a new one is added. It is super arduous for anyone to calculate the proof-of-work for an entire set of blocks which in turn makes it difficult to tamper with the blockchain. The epicenter of blockchain’s security is the creative use of hashing and proof-of-work mechanism.
Distribution – Open tight security
Blockchain technology has one more level of security that amps up the entire process of making the blockchain super secure from theft. The hero feature over here is distribution. Blockchain technology is famous because of the fact that it is a peer-to-peer network. This network of blocks allows anyone to join the network system which makes it open and transparent for users. When an individual joins this network, he/she gets the entire copy of the blockchain. The individual copy of the chain has nodes. The different segments which make up the whole data structure are called as Nodes. The node has the power to verify the order of the chain. When a new block is created, it is sent to everyone on an open network of the blockchain. The blocks are then verified by each node to check on the authenticity. If it’s verified, only then it is added to the blockchain. The foundation and objective of this whole process is Consensus.
They are the validators of each block. The automatic consequence of this will be the rejection of tampered blocks by the nodes. So in all, even if someone wants to tamper the blockchain successfully, they will need to control almost entire peer-to-peer network, recalculate the proof-of-work of each block and then tamper with every subsequent block in the chain. Only then can you succeed in entering the web of blockchain with your tampered block. And this my friend, is nearly impossible to execute.
Blockchain technology is revolutionary. It has a profound impact to the way we trade and transact, in the sense that we will have to rebuild our financial structures from the ‘Oldskool to the Newskool.’ The transition from the intermediary empire to the peer-to-peer free exchange would mark a glorifying change to fundamental ways we trade. Blockchain technology will be further used to store medical records, create E-notaries, or even to collect taxes. It is still taking baby steps to make its presence in the world. For those who might think that blockchain technology does not hold a future, a sheer look into Bitcoin will be enough to grasp the facts and benefits of blockchain and how blockchain technology works.
The term AI might bring in lots of thought bubbles of robots taking over the world or Sophia (robot) gaining more than 50 facial gestures. However, what we will touch upon here will be the integration of the blockchain and AI, which seemingly will bring more prosperity to the world rather than conspiracy theories. The potential amalgamation of blockchain technology and Artificial Intelligence are raising so many questions and are fundamentally changing the way we look and operate the world. It is increasingly becoming a topic of heated and excited debate providing the pros and cons of both. Instead of harping on the drawbacks of it, which is by the way almost zero, let’s focus on what it will give the world.
The blockchain is already revered as the next frontier of a free, secure and open way of transaction. The AI, on the other hand, has mixed reactions from all corners of the globe. It is a must say that AI only brings on lots of fear on to the table, because unfortunately only the ‘AI-apocalypse’ is discussed rather than the benefits it can bring to the world. Even though the world sees mixed reactions to AI, it has been incorporated by tech mammoths to take their innovations to the next paradigm. Similarly, the integration of Blockchain and AI is nothing but a natural innovation which was due in the world. The combination of Blockchain and AI brings forward some interesting questions and concepts that belong to two different branches of philosophies. The blockchain is decentralized, and the AI is centralized. The amalgamation of both will give interesting touch points to focus on, that being said, it will mostly benefit sectors that are already in need of new ways to functions and trade.
As said above, the centralization and the clashes of both the pillars can be hard. On one hand, we have the blockchain, which is an open to code, highly decentralized, distributed in a peer-to-peer network and establishes a secure and updated transaction chain that acts a safe box and a record! On the other hand, AI is centralized, owned by few powerful organization which has the resources and intellect to create and deploy AI machines, uses probability to function and is also feared mainly in the common circuit of people. Centralized AI is also concerned with using technologies like facial recognition and surveillance to spy on people. While the fact is that there are a lot of differences, it can be said that integrating both the blockchain and AI would bring forth some fantastic systems that will help in better trade and monitoring.
AI algorithms incorporated with the transparent verification process of the blockchain technology will assist in enhancing the verification process. Even though the whole process is automatic and secure in the blockchain, the introduction of AI will provide better surveillance tripled with cognition and efficiency. AI has many branches like machine learning and data analytics (backed by AI) which will have a significant impact on the decentralized blockchain and help this novel technology in verifying identities. As AI is not decentralized like the blockchain, this merging can also lead to AI automatically branching into the decentralized marketplace where it will be of great help to individuals and the network they share.
We cannot deny the fact that with new-age technologies, age-old systems don’t die quickly. You have the financial system, database servers – systems and physical knowledge that cannot transform soon. AI will have to tap into blockchain and provide the edge on energy consumption, scalability to introduce new ways, integrate gigantic volumes of blockchain data, security of the blockchain, reducing network latency of the blockchain, and curbing financial costs required to run the peer-to-peer network. Similarly, the blockchain technology will also amplify AI and help alleviate some of its latencies it brings with it. The blockchain, being the transparent, secure and distributed network that it is, increase the validity of AI information, the collection of useful and massive data, increase trust in the AI-blockchain regulated data, and several other opportunities of change that comes with it.
The world of cryptic data and AI-run mechanisms are blooming and seeing new developments with more extensive research done by tech companies and innovators. The massive potential of the blockchain and AI also has caught the eye of companies that are just interested in investing because they see the profit and huge scope lying ten years down the line. In history, we have seen several industries merging and working together, like the fitness and pharmaceutical, food and travel industry, and several others. The gates of amalgamation have also been opened to blockchain and AI that sees nothing but a bright future in the coming years.