What is blockchain? Join HVA to learn about blockchain addresses, outstanding features and the role of the Vietnam Blockchain Technology Association right below this article.
What is Blockchain?
>>>See more articles: Blockchain applications in various fields
Concept What is blockchain? Blockchain is a type of digital ledger, distributed across a network of computers. It stores information sequentially, securely and transparently. Each block in the chain contains a set of transactions, linked to the previous block by a cryptographic hash function. This creates an unbreakable chain, ensuring data integrity and security.
What are the characteristics of blockchain?
Dispersion
- No single entity controls the entire system.
- Data is divided and stored on many different computers, forming a network.
Security
- Each block of data is encrypted using strong cryptographic algorithms, ensuring security.
- Each block is linked to the previous block through a hash, any change will affect the entire chain.
Transparent
- All transactions are recorded publicly on the blockchain.
- Once data is recorded on the blockchain, it cannot be deleted or modified.
Cannot be changed
- Data on the blockchain is immutable.
- Transparent transaction history: Every transaction can be traced and verified.
Reliability
- Transactions are validated by nodes in the network, eliminating the need for a trusted intermediary.
- Reduce fraud and increase blockchain transparency
Efficiency
- Many processes are automated, minimizing human intervention.
- Compared to traditional systems, transactions on the blockchain are often faster and more efficient.
Blockchain technology and how it works
Create transaction
- When a new transaction is made (for example, transferring funds from wallet A to wallet B), information about that transaction is created into a record.
- This record will include information about the sender, recipient, amount and type of assets transferred.
Add transaction to block
- New transaction records will be grouped into blocks.
- Each block will contain a certain number of transactions.
- In addition to information about transactions, each block also contains a special field called the “hash” of the previous block.
Calculate the hash function
- A hash function is a one-way mathematical function, meaning it is very difficult to calculate backwards from the hash value to find the original data.
- When a new block is created, all the data in the block (including the hash of the previous block) is fed into a hash function to create a unique hash value for that block.
- This hash value will be written at the beginning of the next block, forming a chain of blocks.
Validate new blocks and add blocks to the chain
- Nodes in the network compete to solve a complex mathematical problem to validate the new block.
- The node that solves the problem first gets to add a block to the chain and receive a reward.
- This whole process is called coin mining.
Blockchain Update
- When a new block is added, all nodes in the network update their blockchain.
- Since each block is linked to the previous block by a hash, changing any data in one block will affect the following blocks and destroy the integrity of the chain.
Security
- Distributing the blockchain across multiple computers increases security and reduces the risk of centralization.
- Strong encryption algorithms are used to protect data in the blockchain.
- Hash functions help ensure data integrity and prevent tampering.
- Nodes in the network must reach consensus on the validity of each new block added to the chain.
What is the meaning of blockchain address?
A blockchain address is a unique string of characters that represents a cryptocurrency wallet or smart contract on a specific blockchain network. When you send cryptocurrency, you send it to a specific blockchain address.
Blockchain addresses are important in blockchain transactions:
Wallet Identification
- Every wallet has a unique address, just like your bank account number. This helps differentiate wallets from each other and ensures that funds are sent to the right person.
- The wallet address is public, but the private key to access the wallet is kept secret. This helps protect your assets from theft.
Make a transaction
- A wallet address is like a home address, it tells you where you want to send your coins to.
- When you make a transaction, the blockchain network verifies that the receiving address is valid and ensures that the funds are sent to the right person.
- Once the transaction is confirmed, the information about the receiving address is recorded on the blockchain and cannot be changed.
Action with smart contracts
- A smart contract address is a special address on the blockchain that represents a program that automatically executes pre-programmed conditions. When you want to use an App, you will interact with these smart contract addresses by calling functions defined in the contract.
- You can pass parameters into these functions to perform different actions, such as depositing funds, transferring assets, or participating in DeFi applications.
The role of Vietnam Blockchain Technology Association
- Community Representative: The Association is the collective voice of the Vietnamese blockchain community, helping to convey the community's views and needs to state management agencies.
- Standards Development: The Association participates in developing standards and regulations for blockchain-based products and services, ensuring compatibility and quality.
- Human resource development: The Association organizes training courses and workshops to enhance the capacity of developers, investment expert in the blockchain field.
- Promoting international cooperation: The Association connects Vietnamese businesses with international partners, creating conditions for Vietnamese businesses to participate in blockchain projects globally.
- Building a startup ecosystem: The association supports startups in the blockchain field, providing the necessary resources for development.
What are the opportunities and challenges of blockchain?
About opportunity
- Market Growth: Governments and large businesses are investing heavily in research and development blockchain technologyBlockchain can be applied in many different fields, from finance, banking to logistics and healthcare.
- Innovation: Blockchain creates new opportunities to build decentralized business models. Many startups have been successful thanks to the application of blockchain technology.
- Increased transparency and efficiency: Blockchain helps reduce fraud and corruption. It also helps track and manage supply chains efficiently.
About the challenge
- Blockchain is a relatively new technology, so building a complete and appropriate legal framework is a big challenge for regulators.
- Vulnerabilities in smart contracts or protocols on blockchain systems can cause huge financial and reputational damage.
- Blockchain has a different architecture than traditional systems, making integration difficult.
Conclude
Through learning about What is blockchain?, it can be seen that blockchain technology is opening a new era for applications in many fields, from finance to logistics. The Vietnam Blockchain Technology Association plays an important role in promoting the development and application of this technology in Vietnam.
Platforms like HVA are also actively participating in this field, showing the great potential of blockchain. With outstanding features such as decentralization, security, transparency, this technology promises to bring many benefits to society and economy in the coming period.
