Blockchain technology is playing an important role in every aspect of life, in industries from financial services, manufacturing, education to energy,…

What is Blockchain?

Blockchain technology – a combination of 3 types of technology:

– Cryptography: to ensure transparency, integrity and privacy, Blockchain technology has used public key and hash function.

– Peer-to-peer network: Each node in the network is considered as a client and also a server to store a copy of the application.

– Game theory: All nodes participating in the system must comply with the rules of the consensus game (PoW, PoS, …) and are motivated by economic motivation.

The structure and working mechanism of Blockchain

Blockchain consists of 2 main parts:

• Blocks: These blocks contain data
• Chain: the above blocks link together to form a chain

Each block consists of 3 main components:

• Data: Verified data records are protected by cryptographic algorithms that depend on each block chain.

For example: sender, receiver information, amount of coins sent…

• Hash Code: This is a randomly generated string of letters and numbers that are not exactly the same. It specifically represents the block and uses a cryptographic algorithm to encrypt it. This code is used to detect changes in the block and like our fingerprint: unique, not duplicate.

• Previous Hash code: It is used to identify which block is ahead and which one is later in the chain, to properly link them together. However, the first block, because there is no block before it, its Hash is a sequence of zeros. This first block is called the Genesis block i.e. “Primitive Block” or root block.

Key Features of Blockchain Technology

Blockchain was created to solve the limitations and risks arising from the conventional trading system. Therefore, Blockchain technology has the following outstanding features:

Decentralization

Blockchain operates independently according to computer algorithms and is completely not under the control of any organization. Therefore, Blockchain avoids risks from third parties.

Disperse

Blocks contain the same data, but are distributed in different places. So if somewhere is lost or corrupted, the data stays on the Blockchain. 

Invariant

Once data is written to the blockchain, it cannot be altered or modified due to the characteristics of the consensus algorithm and hash code. The data is stored forever. 

Security

Only the holder of the private key can access the data inside the Blockchain and retrieve it.

Transparent

Transactions in the blockchain are recorded and can be viewed by everyone. So, it is possible to check and retrieve the transaction history. People can even be decentralized to allow others to access part of the information on the Blockchain.

Smart contract integration

Smart contracts are digital ones created by an if-this-then-that (IFTTT) code in a technology system. These contracts allow the blockchain to execute things on its own, without the need of a third party. The terms are written in the smart contracts, when the previous conditions are met, they are executed and no one can stop or cancel them.

Cannot be destroyed or forged

In theory, only quantum computers can interfere and decrypt the blockchain. Blockchain can be completely destroyed when there is no Internet left in the world, but of course this is not possible.

How to make money from Blockchain?

Invest in Cryptocurrency

The technology behind Cryptocurrency is blockchain. One of the top coins is Bitcoin, which started its journey in July 2009. On April 1, 2013, one bitcoin was worth $133.76. As of April 1, 2017, the same bitcoin was worth $1,089.51. By December 2017, Bitcoin had crossed the $10,000 for each one.

However, Bitcoin is not the only cryptocurrency. There are Ethereum, Ripple, Litecoin, and more. These are big markets for speculation, and indeed a lot of people know about Blockchain technology through these crypto market news.

Currency investing is buying, selling, and holding currencies for a profit. All forms of money are speculated. Due to the volatile nature of the crypto market, there are a lot of opportunities and risks here. You need to understand and make informed decisions when participating in investments.

The cryptocurrency market changes with a large price range. You can face cash flow problems. However, if you have some idle capital, then cryptocurrency investment can also be a good choice.

Build your own Blockchain app or company

After cryptocurrencies began to gain traction, the scientific and research community saw more potential. The Ethereum project is based on blockchain technology. It also has a coin called Ether.

But the most notable point here is the smart contract. Smart contracts allow two parties to execute legal contracts through digital code. It could change the way we conduct business and conduct transactions in the future. And there are many other opportunities.

BitClave (BitClave – Decentralized Search Engine), a decentralized search engine, is directly connecting consumers and businesses. The platform will eliminate the need for an intermediary like Google, Yahoo or Bing to track consumer information. BitClave will allow consumers to own their own data and disclose it to businesses on a consensus basis. The data will reside on the BitClave blockchain.

Nasdaq is looking to build a blockchain-based voting system for electronic shareholders. Similar voting systems can also be used for government elections. Identity documents, real estate, and collateral are moving to blockchain. Companies with copyrighted material such as books, music, and videos are looking in blockchain for protection against piracy.

If you are interested in building a technology company, blockchain has opened the door to a lot of opportunities. You can be the next Twitter or Facebook success with this new technology.

Providing Services for Blockchain

If speculation or building new companies is not your thing, you can still work in the blockchain industry. With the rise of blockchain-based startups, the demand for people with blockchain skills is growing. It’s not just programming.

These companies need people with finance, marketing and management skills. Free and paid courses are available. You can invest time and money to understand blockchain technology to further your career. Or you can start making money by providing freelance services to these companies.

Blockchain technology offers not only promises, but also many risks. Learn more about this market and make the right decisions. Of course, if you can make money from Blockchain, that would be great! Good luck!