Powered by Al User What is blockchain? Bing Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network. An asset can be tangible (a house, car, cash, land) or intangible (intellectual property, patents, copyrights, branding). Virtually anything of value can be tracked and traded on a blockchain network, reducing risk and cutting costs for all involved, Blockchain is ideal for delivering information because it provides immediate, shared, and completely, transparent information stored on an immutable ledger that can be accessed only by permissioned network members. A blockchain network can track orders, payments, accounts, production, and much more. And because members share a single view of the truth, you can see all details of a transaction end to end, giving you greater confidence, as well as new efficiencies and opportunities, All network participants have access to the distributed ledger and its immutable record of transactions. With this shared ledger, transactions are recorded only once, eliminating the duplication of effort that’s typical of traditional business networks, No participant can change or tamper with a transaction after it’s been recorded to the shared ledger. Ifa transaction record includes an error, a new transaction must be added to reverse the error, and both transactions are then visible. To speed transactions, a set of rules — called a smart contract — is stored on the blockchain and executed automatically, A smart contract can define conditions for corporate bond transfers, include terms for travel insurance to be paid, and much more. Those transactions show the movement of an asset that can be tangible (a product) or intangible (intellectual). The data block can record the information of your choice: who, what, when, where, how much, and even the condition — such as the temperature of a food shipment. These blocks form a chain of data as an asset moves from place to place or ownership changes hands. The blocks confirm the exact time and sequence of transactions, and the blocks link securely together to prevent any block from being altered or a block being inserted between two existing blocks. Each additional block strengthens the verification of the previous block and hence the entire blockchain. This renders the blockchain tamper-evident, delivering the key strength of immutability. User What is distributed ledger ? Bing A distributed ledger is a database that is consensually shared and synchronized across multiple sites, institutions, or geographies, accessible by multiple people. It allows transactions to have public “witnesses” The participant at each node of the network can access the recordings shared across that network and can own an identical copy of it. Any changes or additions made to the ledger are reflected and copied to all participants in a matter of seconds or minutes. A distributed ledger stands in contrast to a centralized ledger, which is the type of ledger that most companies use. A centralized ledger is more prone to cyber attacks and fraud, as it has a single point of failure. Underlying distributed ledgers is the same technology that is used by blockchain, which is the technology that is used by bitcoin. Blockchain is a type of distributed ledger used by bitcoin, A distributed ledger can be described as a ledger of any transactions or contracts maintained in decentralized form across different locations and people, eliminating the need for a central authority to keep a check against manipulation. In this manner, a central authority is not needed to authorize or validate any transactions. All the information on the ledger is securely and accurately stored using cryptography and can be accessed using keys and cryptographic signatures. Once the information is stored, it becomes an immutable database, which the rules of the network govern. UserHistory of blockchain. Bing The history of blockchain technology is quite fascinating. Here’s a brief timeline: * 1991: Researchers Stuart Haber and W. Scott Stornetta introduced the concept of blockchain. They developed a system using cryptography to time-stamp digital documents so that they couldn’t be tampered with or misdated + 1992: Merkle Trees were incorporated into the system, allowing several documents to be collected into one block. This made blockchain technology more efficient. * 2000: Stefan Konst published his theory of cryptographic secured chains, along with ideas for implementation, + 2004: Cryptographic activist Hal Finney introduced a system for digital cash known as “Reusable Proof of Work". This system helped solve the double-spending problem by keeping the ownership of tokens registered on a trusted server. + 2008: Satoshi Nakamoto conceptualized the concept of “Distributed Blockchain” in his white paper: “A Peer to Peer Electronic Cash System”. He modified the model of Merkle Tree and created a system that is more secure and contains the secure history of data exchange. + 2009: Satoshi Nakamoto released the Bitcoin White Paper. Blockchain technology became the backbone of Bitcoin, marking the first real-world application of blockchain. Since then, the evolution of blockchain has been steady and promising, finding use in various fields. I's interesting to note that blockchain technology was first outlined in 1991, but it wasn’t until almost two decades later, with the launch of Biteoin in 2009, that blockchain had its first real-world application User Benefits and limitations of blockchain. Bing Blockchain technology has several benefits and limitations: Benefits: 1. Trust: Blockchain increases trust, security, transparency, and the traceability of data shared across a business network. 2. Seeurity: By creating a record that can’t be altered and is encrypted end-to-end, blockchain helps prevent fraud and unauthorized activity. It uses hashing techniques to store each transaction on a block that is connected to each other so it has tighter security. 3. Transparency: All network participants with permissioned access sce the same information at the same time, providing full transpareney. All transactions are immutability recorded, and are time- and date- stamped. 4. Efficiency: By streamlining processes with blockchain, transactions can be completed faster and more efficiently. It removes any third-party intervention between transactions and removes the mistake making the system efficient and faster 5. Cost Reduction: Blockchain significantly reduces overhead and transaction costs, and reduces or eliminates the need for third parties or middlemen to verify transactions. Limitations: 1, Sealability: Blockchain like bitcoin has consensus mechanisms which require every participating node to verify the transaction. It limits the number of transactions a blockchain network can process. 2. Immutable: In immutable, we cannot make any modifications to any of the records. It is very helpful if you want to keep the integrity of a record and make sure that nobody ever tampers with it. But immutability also has a drawback. 3. Key Management: When you are dealing with a private key, then you are also running the risk that somebody may lose access to your private key.4, Consensus Mechanism: Depending on the network size and the number of blocks or nodes involved in a blockchain, the back-and-forth communications involved to attain a consensus can consume a considerable amount of time and resources 5, Integration with Legacy Systems: Because of its limitations, blockchain could cause temporary business disruptions. 6. High Energy Consumption: Blockchain technology does not allow easy modification of data once recorded, and it requires rewriting the codes in all of the blocks, which is time-consuming and expensive. User Features of blockehain, Bing Blockchain technology has several key features that make it unique and powerful: 1, Immutability: Once a transaction is recorded on the blockchain, it cannot be modified or deleted. This makes the blockchain an immutable and tamper-proof ledger that provides a high degree of security and trust. 2. Distributed: All network participants have a copy of the ledger for complete transparency. A public ledger provides complete information about all the participants on the network and transactions. The distributed computational power across the computers ensures a better outcome. 3. Decentralized: Blockchain technology is a decentralized system, which means that there is no central authority controlling the network. Instead of relying on centralized authorities, it ensures the blockchain features through a collection of nodes. Every node on the system has a copy of the digital ledger. To add a transaction every node needs to check its validity. If the majority thinks it’s valid, then it’s added to the ledger. 4, Seeurity: Blockchain uses hashing techniques to store each transaction on a block that is connected to each other so it has tighter security. All the information on the ledger is securely and accurately stored using cryptography and can be accessed using keys and cryptographic signatures. 5. Consensus: In a blockchain network, no node will get any sort of special treatment or favors from the network. Everyone will have to follow the standard procedure to add a new block to the network. For a new block to be added to the blockchain network it must be approved by a majority of the nodes on the network. 6, Faster: Due to no involvement of intermediaries in the blockchain, the validation for the change will be done quickly. Ifa user wants to add a new block then other participating nodes have to verify the transaction. User Public blockchains, Private blockchains, Semiprivate blockchains. Bing Sure, here’s a brief overview of each: Public Blockchains: + Public blockchains are open networks that allow anyone to participate in the network, * They are decentralized and do not have a single entity which controls the network. * Anyone can join the network and read, write, or participate within the blockchain, © Public blockchains are transparent and open for everyone to access. + They are secure to the $1% rule. # There is no need to use your real name, or identity, everything can be hidden. * No regulation hence no limit to how one can use the platform for betterment. * Itoffers anonymity, no one can track your transaction back to you. Private Blockchains:Semi+ User Private blockchains are like a private asset of the individual or an organization. Unlike a public blockchain, a private blockchain has an in-charge who monitor important task and give access to read or block access. It is also known as permissioned blockchain as it has restrictions on who can participate in transactions and validations. The entities have been chosen in this network by the respective authority and the chain developers while building the blockchain application. This blockchain uses are internal to the company so companies will not want it to be accessible by the public. Private blockchains help in preventing fraud. Since the lesser number of nodes are there performance is increased as it takes less time to validate the block. Anetwork that doesn’t host millions of users can easily implement the changes and features and hence can increase scalability. private Blockehains: Semi-private blockchains are run by a single company who grants access to any user who qualifies, and they typically target business-to-business users. With semi-private blockchains, part of the blockchain is private and part of it is public. The private part is controlled by a group of individuals, while the public part is open for participation by anyone. They will be similarly managed as a company would manage private web applications, ‘As long as users qualify according to pre-established criteria, credentials or profile, they are given access. There should not be significant discrimination for access. ‘And in some cases, access might be completely open. ‘Types of consensus mechanisms, Consensus in blockchain. Bing Ina blockchain, consensus is a procedure through which all the peers of the network reach a common agreement about the present state of the data in the network. Consensus algorithms establish reliability and trust in the blockchain network. They ensure that every new block that is added to the blockchain is the one and only version of the truth that is agreed upon by all the nodes in the blockchain. The blockchain consensus protocol consists of some specific objectives such as coming to an agreement, collaboration, cooperation, equal rights to every node, and mandatory participation of each node in the consensus process. There are several types of consensus mechanisms used in blockchains: . Proof of Work (PoW): js consensus algorithm is used to select a miner for the next block generation. Bitcoin uses this PoW consensus algorithm, The central idea behind this algorithm is to solve a complex mathematical puzzle and easily give out a solution. Proof of Stake (PoS): This is the most common altemative to PoW. Ethereum has shifted from PoW to PoS consensus. In this type of consensus algorithm, instead of investing in expensive hardware to solve a complex puzzle, validators invest in the coins of the system by locking up some of their coins as stakes. Delegated Proof Of Stake (DPoS): This is another type of Proof of Stake consensus algorithm, Practical Byzantine Fault Tolerance (PBFT). Proof of Authority (PoA). Proof of History (PoH). Proof of Capacity (PoC). Proof of Elapsed Time (PoET). Proof of Validation (Pov).10, Proof of Importance (Pol). 11. Delegated Proof of Contribution Protocol (DPoC). 12, Proof-of-Stake Voting (PoSV). 13, Proof of Activity (PoA). 14, Proof of Burn (PoB). 15. Ripple Protocol Consensus. 16, Stampery Blockchain Timestamping Architecture (BTA) 17. Anonymous proof of stake (ZPoS). Zach of these consensus mechanisms has its own advantages and disadvantages, and they are used in different types of blockchain networks based on the specific requirements of those networks. User Decentralization in blockchain technology Bing Decentralization is a key concept in blockchain technology. It refers to the transfer of control and decision- making from a centralized entity (individual, organization, or group thereof) to a distributed network. This means that no single entity has control over the entire network. Instead, control is distributed among a number of participants, each of whom has equal authority. Here are some of the benefits of decentralization in a blockchain network: * Trustless Environment: In a decentralized blockchain network, no one has to know or trust anyone else. Each member in the network has a copy of the exact same data in the form of a distributed ledger. + Improved Data Reconciliation: Companies often exchange data with their partners. By having a decentralized data store, every entity has access to a real-time, shared view of the data. + Reduced Points of Weakness: Decentralization can reduce points of weakness in systems where there may be too much reliance on specific actors. * Optimized Resource Distribution: Decentralization can also help optimize the distribution of resources so that promised services are provided with better performance and consistency. However, it’s important to note that decentralization should be applied where it makes sense. Just because it’s a blockchain application doesn’t mean it needs to be 100% decentralized. The goal of any blockchain solution is to deliver what the users of that solution need, and this may or may not include certain levels of decentralization User Bitcoin and its history Bing Bitcoin is a cryptocurrency, a digital asset that uses cryptography to control its creation and management rather than relying on central authorities. The history of Bitcoin started with its invention and implementation by Satoshi Nakamoto, who integrated many existing ideas from the cryptography community. Here’s a brief timeline of Bitcoin’s history: + 2008: The domain name bitcoin.org was registered, + 2009: The genesis block, the first block in the Bitcoin blockchain, appears. The first version, Bitcoin v0.1, is issued. The first Bitcoin transaction (block #170) takes place. The first Bitcoin course towards exchange dollar is published: 1 USD = 1,309.03 BTC. + 2010: Bitcoin’s price never topped $1 in 2010! Its highest price for the year was just $0.39. This is the year in which the famous purchase of two Dominos pizzas for 10,000 BTC took place.* 2011: Bitcoin Price during 2011 started to pick up steam. * 2012 - 2023: Bitcoin’s price has ranged from $0 to its highest at $68,991. Over the course of Bitcoin’s history, it has undergone rapid growth to become a significant store of value both on- and offline, From the mid-2010s, some businesses began accepting Bitcoin in addition to traditional currencies. In 2021, Bl Salvador adopted it as legal tender. User Crowdfunding Bing Crowdfunding is the use of small amounts of capital from a large number of individuals to finance a new business venture. It makes use of the easy accessibility of vast networks of people through social media and crowdfunding websites to bring investors and entrepreneurs together. Crowdfunding has the potential to increase entrepreneurship by expanding the pool of investors beyond the traditional circle of owners, relatives, and venture capitalists. Here’s how crowdfunding works: + Itprovides a forum for anyone with an idea to piteh it in front of waiting investors. # Investors can select from hundreds of projects and invest as little as $10 * Crowdfunding sites generate revenue from a percentage of the funds raised, ‘The first instance of crowdfunding was recorded in 1997 when a music group from the United Kingdom raised money for a concert tour from fans. ArtistShare, which was the first crowdfunding site, was launched three years later, Almost a decade later, it became a key source for companies to raise capital. There are several types of crowdfunding, including donation-based, rewards-based, equity-based, and debt- based crowdfunding. Some of the most popular crowdfunding platforms include Kickstarter, Indiegogo, and GoFundMe. User Smart Contracts Bing ‘Smart contracts are digital contracts stored on a blockchain that are automatically executed when predetermined terms and conditions are met. They are simply programs stored on a blockchain that run when predetermined conditions are met. They typically are used to automate the execution of an agreement so that all participants can be immediately certain of the outcome, without any intermediary’s involvement or time loss. Smart contracts work by following simple “iffwhen...then...” statements that are written into code on a blockchain. A network of computers executes the actions when predetermined conditions have been met and verified, These actions could include releasing funds to the appropriate parties, registering a vehicle, sending notifications, or issuing a ticket. The blockchain is then updated when the transaction is completed. Smart contracts have several key features: * Distributed: Everyone on the network is guaranteed to have a copy of all the conditions of the smart contract and they cannot be changed by one of the parties. + Deterministie: Smart contracts can only perform functions for which they are designed only when the required conditions are met. + Immutable: Once deployed smart contract cannot be changed, it can only be removed as long as the functionality is implemented previously. + Autonomy: There is no third party involved. The contract is made by you and shared between the patties * Customizable: Smart contracts have the ability for modification or we can say customization before being launched to do what the user wants it to do. + Transparent: Smart contracts are always stored on a public distributed ledger called blockchain due to which the code is visible to everyone, whether or not they are participants in the smart contract.‘The concept of smart contracts was first recognized in 1994 by Nick Szabo, a legal scholar, and a cryptographer. He theorized that these contracts could be written in code which can be stored and replicated on the system and supervised by the network of computers that constitute the blockchain. These smart contracts could also help in transferring digital assets between the parties under certain conditions. User Wallets in blockchain Bing A blockchain wallet is a software that enables sending and receiving cryptocurrencies such as Bitcoin, Ethereum, etc. It stores the record of transactions and also public and private keys which are used to perform transactions. A public key is similar to an account number. If A wants to send some money to B using Bitcoin when A sends the public key address to B. Anyone can send BitCoin using the public key. A private key is similar to an account password. Only the account holder knows the private key. The private key is used to send money. Public-Private keys are always present in pairs. A blockchain wallet never stores any cryptocurrencies. It contains the record of transactions performed by the users, It also stores the public and private keys of the user. A blockchain wallet is a cryptocurrency wallet that is used to manage cryptocurrencies like Bitcoin and Ethercum. It helps to exchange funds easily and the transactions are more secure as they are cryplographically signed. The privacy and the identity of users are maintained and it provides all the features that are necessary for secure and safe transfers and exchange of eryptocurrencies. Features Of Blockchain Wallet: + Secure: Blockchain wallets are secure as they carry on the private key that needs to be secured. There are no cryptocurrencies in blockchain wallets. * Easy to Use: Blockchain wallets are easy to use as they are just like any other digital wallets like Paytm that everyone uses in day-to-day life. + Low transaction fees: The cost of transferring funds using blockchain wallets is much lower than that of traditional bank transactions. + Instant transactions: Blockchain wallets allow users to instantly transfer funds across different geographics and these are barrier-free and without intermediaries. + Allows multiple eryptocurreneies: Blockchain wallets allow transactions across multiple cryptocurrencies and thus helping users to do easy currency conversions. User Blockchain ecosystem. Bing A blockchain ecosystem is a dynamic network of interconnected blockchain platforms, applications, and participants that collaborate to create a seamless and secure digital environment. It is based on the principles of decentralized governance, transparency, and immutability, enabled by the underlying blockchain technology. The blockchain ecosystem is the network of all the participants in the blockchain network that share the business process and business objectives. The ecosystem encompasses the different governing structures like individual participation, data ownership, exit and entrance criteria, and information and data shared with the system’s participants. ‘There are three different types of blockchain ecosystems: 1, Single-party led blockchain ecosystem: This ecosystem is led by a single organization where all the stakeholders have a mutual benefit for participating in the network. 2. Joint venture blockchain ecosystem: This is also known as the Consortium blockchain ecosystem. These involve two or more organizations in the ecosystem. 3. Regulatory blockchain ecosystem: This involves a regulatory body that oversees the operations of the blockchain. The components of a blockchain ecosystem include node application, distributed ledger, and smart contracts. ‘he blockchain ecosystem can provide immutability, decentralization, flexibility for day-to-day operations, andscalability. It’s a boon for startups and new technology projects as it creates an interconnected network. User Ethereum. Bing Ethereum is a decentralized open-source blockchain system that features its own cryptocurrency, Ether. It was initially described in late 2013 in a white paper by Vitalik Buterin, a programmer and co-founder of Bitcoin Magazine. The network went live on July 30, 2015. Ethereum allows anyone to deploy permanent and immutable decentralized applications onto it, with which users can interact. Decentralized finance (DeFi) applications provide financial instruments which do not directly rely on financial intermediaries like brokerages, exchanges, or banks. This facilitates borrowing against cryptocurrency holdings or lending them out for interest. Ethereum also allows users to create and exchange non-fungible tokens (NFTs), which are tokens that can be tied to unique digital assets, such as images. Additionally, many other cryptocurrencies utilize the ERC-20 token standard on top of the Ethereum blockchain and have utilized the platform for initial coin offerings. On September 15, 2022, Ethereum transitioned its consensus mechanism from proof-of-work (PoW) to proof- of-stake (PoS) in an upgrade process known as “the Merge”. This has cut Ethereum’s energy usage by 99%, As of now, 1.00 ETH is equal to 180,016.45 INR... User Uses of bitcoin Bing Bitcoin, as a cryptocurrency, has several uses: 1. Purchasing Goods and Services: Bitcoin can be used to buy merchandise both online and offline. This includes coffee, food, electronics, travel, and more. 2. International Payments: Bitcoin can be used for international payments as they are easy and cheap because bitcoins are not tied to any country or subject to regulation. 3. Investment: Some people buy bitcoins as an investment, hoping that they'll go up in value. 4, Privacy: Bitcoin transactions are pseudonymous, which can provide a desired level of privacy that traditional digital payment systems do not. 5. Low-Cost Money Transfers: Bitcoin has a very low transaction cost, especially compared to other electronic payment systems. 6. Fund Transfers and Settling Trades: Bitcoin can be used for fund transfers, settling trades, and many other issues. t's important to note that while Bitcoin provides many benefits, it also has potential downsides and risks, including price volatility and regulatory uncertainty, User Transactions in biteoin Bing A Bitcoin transaction is a transfer of bitcoin from one address to another. The valid transaction must be signed by the sender, Bitcoin does not have accounts. Instead, pieces of Bitcoin of arbitrary size are all associated with an address, which is controlled by the owner of that biteoin. Here’s how a Bitcoin transaction works:+ Every bitcoin is stored in a virtual wallet and transaction involves the transfer of bitcoin from one wallet to another. * Bitcoins can be sent from peer to peer irrespective of geographical location without any intermediator in between. * Bitcoin transaction means sending bitcoin from one person to the other in the secured blockchain network. + These are messages that are digitally signed using cryptography and are verified by the miners that are present in the blockchain network. + The miner is the person who solves mathematical puzzles (also called proof of work) to validate the transaction, « Numerous miners take part simultaneously to solve the complex mathematical puzzle, the one who solves it first, wins 12.5 bitcoin as a reward, + Miner verifies the transactions (after solving the puzzle) and then adds the block to the blockchain when confirmed, + The transaction input is the bitcoin address from which the money was sent, and the transaction output is the bitcoin address to which the money was sent. * Generally, a bitcoin transaction takes 10 to 20 minutes to confirm ai congestion takes place, then time might take even 60 minutes. actions. If network The transaction rate or speed is dependent on the amount the user pays for it. Ifa user pays a small amount, the transaction rate will be slow, the transaction will take more time to happen, vice versa is applicable here. Due to limited space, only a limited number of transactions are possible at one point in time. Consider a case where heavy network traffic occurs, then the miners prioritize those transactions that have the highest fees so that even in the hectic congestion, the highest-paid transaction gets executed. Many bitcoin wallets allow users to set transaction fees manually. The fees are directly sent to the miners. When the bitcoin hits a bull run, the transaction fees shoot up to an all-time high. There is no such minimum transaction fee a user must pay, but the highest transaction fees mainly lie between $24 to $31. As the highest-paid transaction gets confirmed first, therefore the fees tend to fluctuate based on the demand of the user. User Keys in bitcoin Bing In Bitcoin, keys play a crucial role in facilitating transactions and maintaining the security and integrity of the system, There are two types of keys involved: 1, Private Key: A private key in the context of Bitcoin is a secret number that allows bitcoins to be spent. Every Bitcoin wallet contains one or more private keys, which are saved in the wallet file. The private keys are mathematically related to all Bitcoin addresses generated for the wallet. Bitcoin wallets keep a secret piece of data called a private key or seed, which is used to sign transactions, providing a mathematical proof that they have come from the owner of the wallet. The signature also prevents the transaction from being altered by anybody once it has been issued. 2. Public Key: The public key is derived from the private key and it’s mathematically linked to the Bitcoin address. When you send bitcoins to someone, you use their public key. While a public key can be shared, revealing the private key can allow others to access your Bitcoin, It’s important to keep your private keys secure, as anyone with access to them can spend your Biteoin. On the other hand, you can share your public key openly to receive transactions. User addresses in bitcoin Bing A Bitcoin address is an identifier of 27-34 alphanumeric characters, beginning with the number 1, 3 or bel, that represents a possible destination for a bitcoin payment, Addresses can be generated at no cost by any user of Bitcoin, It’s similar to an email address, set up in a similar fashion, and is a virtual location and identifier where users can send and receive cryptocurrency. They are anonymous and do not contain information about the owner.There are currently three address formats in use in Bitcoin mainnet 1. P2PKH (Pay 2 Public Key Hash): These addresses begin with the number 1 2. P2SH (Pay 2 Script Hash): These addresses start with the number 3. 3. Bech32: These addresses start with bel Setting up a new bitcoin address is free and easy to set up. Individuals and companies are not limited in how many addresses can be set up. Part of the biteoin address is your public key. User Blocks and mining and construction process in Bing In Bitcoin, a block is a data structure within the blockchain database, where transaction data are permanently recorded. A block records some or all of the most recent transactions not yet validated by the network. Once the data are validated, the block is closed. Then, a new block is created for new transactions to be entered into and validated. A block is thus a permanent store of records that, once written, cannot be altered or removed. Bitcoin mining is the process of creating new bitcoins by solving extremely complicated math problems that verify transactions in the currency. When a bitcoin is successfully mined, the miner receives a predetermined amount of bitcoin. Bitcoin mining is necessary to maintain the ledger of transactions upon which Bitcoin is based. Miners have become very sophisticated over the past several years, using complex machinery and grouping to speed up mining operations. The construction process in Bitcoin involves validating the information in a blockchain block by generating a cryptographic solution that matches specific criteria. When a correct solution is reached, a reward in the form of bitcoin and fees for the work done is given to the miner(s) who reached the solution first. Over time, the reward for mining Bitcoin is reduced. This reward process continues until there are 21 million bitcoin circulating. Once that number is reached, the bitcoin reward is expected to cease, and Bitcoin miners will be rewarded through fees paid for the work done. User Bitcoin address Bing A Bitcoin address is a digital identifier that serves as a location where Bitcoin can be sent. It’s a bit like a bank account number in the Bitcoin blockchain network. Bitcoin addresses are created by Bitcoin wallet software. A Bitcoin address is a string of letters and numbers that represents a destination to which bitcoin can be sent. By default, only the person who generated a Bitcoin address can access the funds on it, It is also sometimes called a receiving address and it represents a source and destination of a Bitcoin payment. You can share your BTC address with others and ask them to send Bitcoin to your address. You can find your Bitcoin address by tapping Bitcoin from the app’s home screen, then hitting the “Receiv button on the toolbar of your Bitcoin (BTC) asset view screen, If you have multiple Bitcoin wallets, select the wallet you want from the drop-down menu at the bottom of the asset view screen. Your address will display in QR form and in alphanumeric form, which you can copy to your clipboard. It’s completely safe to share your Bitcoin address with anyone - friends, family, or associates. Your Bitcoin cannot be taken by simply using your Bitcoin address. To do so, one would need both your address and its corresponding private key. But it’s worth noting that since the Biteoin network operates on a public ledger, anyone with knowledge of your Bitcoin address can track your balance and every transaction you’ ve made using that address through a tool known as a Bitcoin block explorer. If privacy is a concern for you, you may want to consider using a new Bitcoin address. User Implementing Keys and Addresses in Python, Wallets, Advanced Keys and Addresses. BingImplementing keys and addresses in Python can be done using the pybitcointools library. Here's an example of how you can generate and display Keys and addresses in various formats: import bitcoin # Generate a random private xey valid_private_key = False while not valid_private_ke; private key = bitcoin.randon_key() decoded_private_key = bitcoin.decode_privkey(private_key, ‘hex") valid_private_key = @ < decoded private key < bitcoin.N print ("Private Key (hex) is: ", private key) print("Private Key (decimal) 4s: ", decoded_private_key) # Convert private key to WIF format Wif_encoded_private_key = bitcoin.encode_privkey(decoded_private_key, ‘wif") print("Private Key (WIF) is: ", wif_encoded_private_key) # Add suffix "@1" to indicate a conpressed private key conpressed_private_key = private_key + ‘01" print("Private Key Compressed (hex) is: ", compressed_private_key) # Generate a WIF format from the compressed private key (WIF-compressed) wif_compressed_private_key = bitcoin.encode_privkey( bitcoin.decode_privkey(conpressed_private_key, ‘hex'), ‘wif') print("Private Key (WIF-Conpressed) is: ", wif_compressed_private_key) # Multiply the EC generator point G with the private key to get a public key point public key = bitcoin.base1@_multiply(bitcoin.6, decoded_private_key) print ("Public Key (x,y) coordinates is:", public _key) # Encode as hex, prefix @4 hex_encoded_public_key = bitcoin.encode_pubkey(public_key, ‘hex') print("Public Key (hex) is:", hex_encoded_public_key) # Compress public key, adjust prefix depending on whether y is even or odd (pubLic_key_x, public_key_y) = public_key if (public_key_y % 2) == ®: ‘compressed_prefix = ‘02 else compressed_prefix = '@3' hex_conpressed_public_key = compressed_prefix + bitcoin.encode(public_key_x, 16) print ("Compressed Public Key (hex) is:", hex_compressed_public_key) # Generate bitcoin address from public key print("Bitcoin Address (bS8check) is:", bitcoin.pubkey_to_address(public_key)) # Generate compressed bitcoin address from compressed public key print("Compressed Bitcoin Address (bS8check) is:", bitcoin. pubkey_to_address(hex_compressed_public_key)) As for wallets in Bitcoin, they are software that enables sending and receiving eryptocurrencies. They store the record of transactions and also public and private keys which are used to perform transactions. A Bitcoin wallet does not store bitcoins within it. Instead, it contains the record of transactions performed by the users. It also stores the public and private keys of the user. A Bitcoin wallet is a cryptocurrency wallet that is used to manage eryptocurrencies like Biteoin and Ethereum, Advanced keys and addresses in Bitcoin include vanity, multisignature, and script addresses and paper wallets. Vanity addresses are a type of Bitcoin address that is custom-made and picked by the user, Multisignature addresses require two or more private keys to sign and send a transaction. Script addresses are a type of Bitcoin address that is made from a script hash instead of a public key hash, Paper wallets are a physical way to store and spend Bitcoin cash. User Private,Public key and Addre: Bing In the context of Bitcoin, a private key is a secret number that allows bitcoins to be spent. Every Bitcoin wallet contains one or more private keys, which are saved in the wallet file. The private keys are mathematically related to all Bitcoin addresses generated for the wallet. A private key is a large alphanumeric code withhundreds of digits. A cryptocurrency wallet consists of a set of public addresses and private keys. Anyone can deposit eryptocurrency in a public address, but funds cannot be removed from an address without the corresponding private key. Private keys represent the final control and ownership of cryptocurrency. If your keys are stolen or lost, your crypto is gone. A public key in the context of Bitcoin is a unique number mathematically generated from a private key. A public key is like an account number that you use to receive bitcoins. It is created from your private key, which like a password for that account number. The public key is the component used to create a Bitcoin address. his is like the address used to receive your e-mail or delivery package. The public address is what tells an application’s wallet where to send the Bitcoin. In creating the public address, the public key undergoes what is called a “double-hash” process. A Bitcoin address is an identifier of 27-34 alphanumeric characters, beginning with the number 1, 3 or bel, that represents a possible destination for a bitcoin payment. Addresses can be generated at no cost by any user of Bitcoin, It’s similar to an email address, sct up in a similar fashion, and is a virtual location and identifier where users can send and receive cryptocurrency. They are set up in a similar fashion to an email address. Setting up a new bitcoin address is free and easy to set up. Individuals and companies are not limited in how many addresses can be set up. Part of the bitcoin address is your public key. User Nodes Types and Roles. Bing Ina blockchain network, a node is a computer, server, or operator that runs the network’s client software, validating commercial transactions according to the established protocol. Nodes make up the foundation of a blockchain network to function. In fact, it won’t be an exaggeration to say that nodes are the blockchain. ‘There are different types of nodes in a Blockchain network, including full nodes, light nodes, and miner nodes: 1, Full Nodes: Full nodes store a complete copy of the Blockchain ledger. They guarantee the security and correctness of the data on the blockchain by validating data. Users are free to download the whole blockchain and validate blocks, thus increasing security, as more and more copies of the ledger are created and used for reference. 2. Lightweight (SPV) Nodes: Lightweight nodes only store the necessary data to verify transactions. Each user participating needs to connect to a full node in order to synchronize to the current state of the network and be able to participate 3. Miner Nodes: Miner nodes can propose blocks and have the complete history of the blockchain. They solve mathematical puzzles (also called proof of work) to validate the transaction. When a miner solves the puzzle first, they win a reward. 4, Masternodes: Masternodes are servers that run a wallet and make decisions, such as locking transactions with InstantSend, coordinate mixing of coins, and voting on budget funding. Authority Nodes: Authority nodes are trusted nodes that validate and add transactions to the blockchain. 6. Pruned Full Nodes: Pruned full nodes are like full nodes but they only keep the most recent transactions. 7, Super Nodes (Listening Nodes): Super nodes are nodes that form the backbone of the network, as they are highly connected. Each type of node has a specific role and responsibility in the blockchain network. User Simplified Payment Verification (SPV) Nodes, BingSimplified Payment Verification (SPV) is a method that allows a lightweight client to verify if a transaction is on the Bitcoin blockehain without having to download the entire blockchain. The block headers, which are significantly smaller than the full blocks, are all that the SPV client needs to download. An SPV client requests a Merkle branch as evidence of inclusion in order to verify that a transaction is included in a block. Compared to web wallets, SPV clients provide better security. Key Features of SPV Nodes: + Simplicity: Itis simple and feasible to know the longest chain without becoming a miner. «Efficiency: A user just needs to preserve a copy of the longest proof-of-work chain’s block headers and retrieve the Merkle branch that connects the transaction to the block it’s timestamped in. + Reliability: The user can’t check the transaction for himself, but he can see that it’s been approved by a network node by tying it to a point in the chain, and he can stop it. * Security: As a result, the verification is reliable as long as the network is controlled by honest nodes, but it becomes susceptible if an attacker gains control of the network. SPV is used in connection with devices with limited storage space and low performance, such as smartphones and tablets. This is because not all nodes can hold the entire blockchain. User Ethereum’s Four Stages of Development Bing Ethereum’s development was planned over four distinct stages, with major changes occurring at each stage. A stage may include a sub-release, known as a hard fork, that changes functionality in a way that is not backward compatible, The four main development stages are codenamed Frontier, Homestead, Metropolis, and Serenity. ‘The intermediate hard forks that have occurred (or are planned) to date are codenamed Ice Age, DAO, ‘Tangerine, Whistle, Spurious, Dragon, Byzantium, and Constantinople. Here’s a brief overview of each stage: |, Frontier (Block #0): Frontier is the initial stage of Ethereum, lasting from July 30, 2015, to March 2016. 2, Homestead (Block #1150000): Homestead is the second stage of Fthereum, launched in March 2016. 3. Metropolis: Metropolis is the third stage of Ethereum, The first two hard forks planned for Metropolis ‘were Byzantium and Constantinople. 4, Serenity: Serenity is the final stage of Ethereum’s development. Each stage brought significant changes and improvements to the Ethereum network, User Ethereum’s Components. Bing Ethereum is a decentralized computing platform that enables anyone to create, store, and run smart contract- based Decentralized Applications, or DApps. The main components of the Ethereum ecosystem are: 1, Smart Contraets: These are self-executing contracts with the terms of the agreement directly written into lines of code. 2. The Blockchain: Ethereum is built on top of a blockchain network. A blockchain is a transparent, distributed public ledger that verifies and records all transactions. 3. Consensus Mechanism: This is the method used to achieve agreement on the blockchain network. 4, Ethereum Virtual Machine (EVM): The EVM is run by Ethereum clients, which can be built in any popular programming language. The EVM can run decentralized programs and execute scripts. 5. Ether Tokens: Ether is the native cryptocurrency of the Ethereum platform.6, Nodes: There are two types of nodes in an Ethereum network. Mining nodes are responsible for writing all the transactions that have occurred in the Ethereum network in the block. Ethereum Virtual Machine nodes are the nodes in the Ethereum network in which Smart Contracts are implemented. These components work together to create a secure and decentralized platform that allows users to build and run applications, smart contracts, and other transactions, User Decentralized Applications (DApps). Bing Decentralized applications, or dApps, are software programs that run on a blockchain or peer-to-peer (P2P) network of computers instead of on a single computer. They are outside the purview and control of a single authority. DApps are often built on the Ethereum platform. They have been developed for a variety of purposes including gaming, finance, and social media. Key features of dApps include: + Decentralization: dApps run on a blockchain network in a public, open-source, decentralized environment and are free from control and interference by any single authorit * Privacy: The benefits of dApps include the safeguarding of user privacy. + Lack of Censorship: dApps are free from censorship. + Flexibility of Development: dApps provide flexibility in development. Potential drawbacks include an inability to scale, challenges in developing a user interface, and difficulties in making code modifications. dApps have been developed to decentralize a range of functions and applications and eliminate intermediaries. Examples include self-executing financial contracts, multi-user games, and social media platforms. DApps have also been developed to enable secure, blockchain-based voting and governance. DApps can even be integrated into web browsers to function as plugins that help serve ads, track user behavior, or solicit erypto donations. User ‘The Third Age of the Internet. Bing The “Third Age of the Internet” is often referred to as Web 3.0 or Web3. It is the third generation of the World Wide Web (WWW) and is currently a work in progress. The vision for Web3 is a decentralized and open web with greater utility for its users. This represents a shift from the current generation, Web 2.0, which succeeded Web 1.0 of the 1990s and early 2000s. Web 3.0 is part of the broader Digital Revolution, also known as the Third Industrial Revolution. This revolution is characterized by the shift from mechanical and analogue electronic technologies from the Industrial Revolution towards digital electronics. This shift began in the latter half of the 20th century, with the adoption and proliferation of digital computers and digital record-keeping, and continues to the present day. The Third Age of the Internet is expected to bring about significant changes in the way we interact with the web, including enhanced personalization, semantic search, artificial intelligence, and the integration of various services. User Ether Currency Units, Choosing an Ethereum Wallet, Control and Responsibility. Bing Ether, the currency unit of Ethereum, is subdivided into smaller units, with the smallest unit being called wei. Here are the different units of Ether © Wei: 0.000000000000000001 * Kwei: 0.000000000000001* Mwei: 0.000000000001 = Gwei: 0.000000001 * Microether: 0.000001 * Milliether: 0.001 © Ether: 1 ‘When it comes to choosing an Ethereum wallet, it’s important to consider factors such as security, convenience, and compatibility with Ethereum-based applications. Some of the top Ethereum wallets include MetaMask, Guarda Wallet, Exodus, and Trust Wallet. Control and responsibility in Ethereum primarily revolve around the management of private keys. Private keys are crucial for accessing and managing your Ethereum account, including sending transactions and interacting with smart contracts. However, with control comes a significant responsibility. If you lose your private keys, you lose access to your funds and contracts, and no one can help you regain access—your funds will be locked Torever. Therefore, it’s essential to keep your private keys safe and secure, User Ethereum Clients. Bing Ethercum clients are the software that runs Ethereum nodes, with geographically diverse node locations strengthening the blockchain for all users. Clients verify data against the protocol rules, keeping the network secure. An Ethereum client is a software program that is used to implement the Ethereum specification and connect itself with other Ethereum clients over a peer-to-peer network. Different Ethereum clients can communicate with one another if they follow the reference specification and the defined communication protocols There are two separate pieces of software (known as ‘clients’) required to form a node. A node has to run two clients: a consensus client and an execution client. The execution client (also known as the Execution Engine, EL client or formerly the Eth1 client) listens to new transactions broadcasted in the network, executes them in EVM, and holds the latest state and database of all current Ethereum data. The consensus client (also known as the Beacon Node, CL. client or formerly the Fth2 client) implements the proof-of-stake consensus algorithm, which enables the network to achieve agreement based on validated data from the execution client. Both execution clients and consensus clients exist in a variety of programming languages developed by different teams. Multiple client implementations can make the network stronger by reducing its dependency on a single codebase. The ideal goal is to achieve diversity without any client dominating the network, thereby eliminating a potential single point of failure. The variety of languages also invites a broader developer community and allows them to create integrations in their preferred language.