31. Name the two types of records that are present in the blockchain database?
These records are block records and transactional records. Both these records can easily be accessed, and the best thing is, it is possible to integrate them with each other without following the complex algorithms.
What are the properties of Blockchain?
There are four key features of blockchain:
• Decentralized Systems
• Distributed ledger
• Safer & Secure Ecosystem
32. What is information processing according to you? What are the key challenges that are associated with it?
The information is often shared on a network. Before actually transmitting it over a network, it needs to be changed into formats that can fit the standards of the channels (the channel is a link between the sender and a receiver).
The work done to convert the information at both sender and receiver end is generally regarded as information processing. The biggest challenge to information processing is securing it during that time. Another challenge is processing bulk information can impose a limit on performance.
33. How does Proof-of-Stake(PoS) consensus algorithm works?
Proof-of-stake works through token staking. Rather than solving tough mathematical computational puzzles, tokens or coins are staked on nodes. These special nodes that take part in the consensus process by staking from a user. The nodes always have a chance to be chosen to validate a block of the transaction. They win a reward once they validate transactions successfully.
34. What is the difference between Proof-of-Stake(PoS) and Proof-of-Work(PoW)?
The difference between the two most popular consensus algorithm, PoW, and PoS, is how they operate. PoW is energy-hungry whereas PoS isn’t. Other key differences include the need for huge computation power in PoW compared to no or less computation power in PoS. PoS is also cost-effective and offers faster completion time when compared to PoW.
35. Name organizations that can use Blockchain technology?
There is no strict upper limit on the category of business who can consider this approach. The fact is almost all the businesses are engaged in online or financial transactions that they need to make to run the processes smoothly. Large-scale corporations, financial institutions, private businesses, government departments and even defense organizations can trust this technology very easily.
36. What are the core requirements for a Business Blockchain?
A business blockchain requires a shared ledger, smart contract functionality, privacy and trust.
37. What is smart contract?
A smart contract is best defined as a computer code that lets you enforce rules and regulations between two parties that are going to interact to carry out a deal. The agreement once is written can be executed automatically for any number of times. Smart contracts is a legal agreement that is written with the help of code. It is widely used in blockchain to automate tasks and also bring transparency to a particular system. For example, smart contracts can be used to sell or own real-world assets.
38. How is smart contract development related to blockchain technology?
Smart contracts are introduced to automate a legal contract between two peers. To make blockchain efficient, smart contract development is necessary. Ethereum handled it pretty well from the start and introduced the idea. Bitcoin can also use smart contracts, but not natively. You need to use RootStock smart contract platform to make smart contracts run on bitcoin. The development is necessary for blockchain technology to evolve and solve more problems.
39. What are the key principles in Blockchain that are helpful in eliminating the security threats that needs to be followed?
Yes, there are a few principles that need to be followed with respect to time. They are:
3. Securing testing and similar approaches
4. Database security
5. Continuity planning
6. Digital workforce training
All these principles are basic and are easy to implement. They are helpful in making the transactions records useful.
40. Is the Blockchain Different from Banking Ledgers?
Banks and accounting systems use ledgers to track and timestamp transactions. The difference is that the blockchain is completely decentralized and an open source. This means that people do not have to rely on or trust the central bank to keep track of the transactions. The peer-to-peer blockchain technology can keep track of all the transactions without the fear of having them erased or lost.
Furthermore, the blockchain, because of its open-source nature, is more versatile and programmable than central banking ledgers. If programmers need new functionality on the blockchain, they can simply innovate on top of already existing software through consensus. This is difficult for central banks because of all of their regulations and central points of failure.