Tag: Blockchain development

Empower Your Business With The Track And Trace APIs Devised By Infrablok

Posted on by Monica


Blockchain provides security and trustworthiness, which is a must for any transaction, be that online or offline. This need increases for the transactions that involve the movement of the product(s) from one location to another, be that for shipping/logistics in business-to-consumer transactions or be that be in any supply chain for business-to-business transactions. Blockchain provides a promising solution to this with the implementation of Track and Trace systems in products.  

Track and Trace systems over Blockchain allow for transparency and accountability in the supply chain, providing a secure and tamper-proof record of a product’s journey from its origin to its destination.      

Track And Trace

The Track and trace software allows tracking of a product at every stage of its journey, from its origin to destination. It enables companies to track a product’s movement providing transparency and accountability. This is important for various reasons, such as complying with regulatory requirements, improving supply chain efficiency, and ensuring product safety.  

Blockchain technology allows for the creation of a decentralized and immutable record of transactions. In the context of Track and Trace, a Blockchain can be used to record every step of a product’s journey, from origin to destination. Each and every transaction is recorded in a block, which is then added to the chain. This creates a transparent and tamper-proof record that can be accessed by anyone with the necessary permissions.  

The use of Blockchain in Track and Trace provides several benefits; some of them are: 

  • It creates an unalterable and transparent record of a product’s journey. This means that any attempts to tamper with the record will be detected, providing an additional layer of security to the supply chain.
  • It allows for tracking of a product, enabling companies to respond to any issues that may arise in transit.
  • It allows the creation of smart contracts that can be automatically triggered based on predefined criteria, such as delays in delivery or quality control issues.

Benefits Of Track And Trace Over Blockchain

There are several benefits of implementing Track and Trace systems over Blockchain, some of which are outlined below:  

Transparency

A blockchain-based Track and Trace system provide transparency across the entire supply chain, allowing companies to monitor the movement of their products. This transparency improves accountability and ensures that everyone involved in the process is held responsible for their actions.  

Security

Blockchain technology provides a secure & tamper-proof record of transactions. This means that any attempts to alter or tamper with the record will be detected, providing an additional layer of security to the supply chain.  

Efficiency

Blockchain-based Track and Trace systems can improve supply chain efficiency by providing tracking of products. This allows companies to respond to any issues that may arise, such as delays in delivery or quality control issues. 

Compliance

A track and trace system over a Blockchain can help companies comply with regulatory requirements by providing a transparent and tamper-proof record of their products’ journey.

Infrablok’s Track And Trace APIs

Implementing a Track and Trace system over Blockchain creates a transparent and secure record of a product’s journey. And this provides transparency and accountability across the entire process.

We have created a set of APIs at Infrablok that would help companies implement Track and Trace over the Blockchain. These APIs can be used by any organization that is –   

  1. Creating a decentralized application to have the feature of Track and Trace.
     
  2. Already have a decentralized application but need to have the functionality of Track and Trace.
     
  3. Working on Web2 but needs to move on to Web3. 

Using our APIs, corporations could add tracking and tracing functionality to their own applications, saving around 30% of their time. Integration of these APIs with existing Blockchain products or products that require a decentralized, trustless method for tracing products is possible.

In addition, these APIs create an asset on a smart contract with a unique identifier transferred down the supply chain. In this, a trail of all actions performed on the asset and ownership is transferred to all participants.

A single unit can be packaged into a carton/container with its unique ID and then can be awarded/outwarded. Moreover, all the units in it can be transferred to the new owner simultaneously; afterward, they can be unpackaged for micro-transfers.

Infrablok APIs List

Track and Trace APIs

Here is the APIs list that we provide – 

New Asset – This registers the product, a single unit at a time.  

https://trackntrace.infrablok.com/api/asset/createAsset

New Package – This packages a list of products together into one package. 

https://trackntrace.infrablok.com/api/asset/createPackage

Outward Entry – This is for outwarding the group of products or a group of packages from the product owner to the logistics provider, which involves changing ownership of all the products either provided as a single product list or packing list to the logistics provider.  

https://trackntrace.infrablok.com/api/asset/createOutwardEntry  

Inward Entry – The receiver provides the group of product ids or the group of package ids that are received. It involves changing ownership of all the products either provided as a sole product list or packing list to the receiver.  

https://trackntrace.infrablok.com/api/asset/createInwardEntry 

Product Delivery To The End User (Setting status as SOLD) – the buyer provides the group of product ids or the group of package ids that the end user received. It involves changing ownership of all the products, either provided as a sole product list to the end-user or setting the final state to SOLD.   

https://trackntrace.infrablok.com/api/asset/assetSold

Depackage APackage – This process involves depackaging a package. Here assets packed within the provided package id will be unpacked again.  

https://trackntrace.infrablok.com/api/asset/dePackage 

Track An Asset – This process returns all the tracking details of an asset.  

https://trackntrace.infrablok.com/api/asset/productTraceById 

Get An Asset Detail – This process gives details about an asset.  

https://trackntrace.infrablok.com/api/asset/getAssetDetailsById  

Check If An Asset Exists For A User – This process checks if an asset exists for the provided user address and returns “true” or “false” in response to the call.  

https://trackntrace.infrablok.com/api/asset/assetExistsByUserAddress  

Get All Asset ids – This process returns asset ids already registered on the Blockchain  

https://trackntrace.infrablok.com/api/asset/getAllAssets   

Some or all these APIs can be used as per the requirement of the decentralized application being created. The smart contracts for these APIs have been deployed on the Goerli Testnet for users to test and interact with the API’s functionality.   

In order to have upgraded options like customized smart contracts or deploying smart contracts on a Blockchain of the user’s choice are also provided. To know about our product and know how to use it, visit HERE.

Short Guide To Decentralized Identity System

Posted on by Ashwini Singh

 

Decentralized Identity (DID) systems are a new approach to identity management that seeks to give individuals and organizations more control over their own digital identity. DID systems are based on the concept of self-sovereign identity, which means that the individual or organization is in charge of their own identity rather than relying on a centralized authority (such as a government or large corporation) to issue and manage their identity.         

Benefits Of A Decentralized Identity System

There are several key benefits of a Decentralized Identity System, some of which are:

Increased Control & Privacy: In a decentralized identity system, the individual or organization is in control of its own identity and can choose what information is shared and with whom. It can help to protect privacy and prevent identity theft.    

Interoperability: DID systems are designed to be interoperable, meaning that they can work with different decentralized platforms and technologies. This makes it easier for individuals and organizations to use their digital identities across various applications and services.   

Decentralization: DID systems are decentralized, meaning that any organization or person does not control them. It can help prevent censorship and ensure the system is more resilient and secure.  

Introducing decentralized identity systems to individuals and organizations can help offer increased control and privacy, interoperability, and decentralization. Moreover, it provides examples of how DID systems can be used in real-world scenarios, such as logging into websites or accessing medical records.

How Does A Decentralized Identity System Work?

Decentralized Identity System Working

A Decentralized Identity System includes the following main elements:  

Blockchain

A Decentralized Database shared among computers in the blockchain network records information in such a way that it makes it very difficult to change, hack, or cheat the system.   

Decentralized Identity Wallet

A DID is a digital wallet that manages DIDs and the private keys associated with them. It allows the owner of the DID to sign digital documents or transactions and access services or applications that require DID authentication.

To use a DID wallet, the owner of the DID will typically need to install a DID wallet application on their device. They can then use this application to create a new DID or import an existing one. Once the DID is brought into the wallet, the owner can sign transactions or access services that require DID authentication.    

In addition to storing a DID and its associated private key, a DID wallet can store other cryptographic keys or credentials. It can be useful for managing access to multiple services or applications that require DID authentication.   

Overall, DID wallets play a central role in the functioning of a DID system. They allow individuals and organizations to manage and use their DIDs to authenticate their identity online and provide a secure way to store and access the private key associated with a DID.  

Decentralized Identifiers

Decentralized Identifiers (DIDs) are new identifiers that allow individuals and corporations to take control of their online identities. They are decentralized, meaning that any single entity, such as a government or corporation, does not control them. In contrast, distributed ledgers like Blockchains can be used to verify identity securely and transparently.  

One of the key benefits of DIDs is that they allow individuals to have more control over their personal information and how it is used. For example, if you have a DID, you can choose which organizations or individuals can access your personal information and revoke access at any time. It can assist in reducing the risk of identity theft and protect your privacy.   

Overall, DIDs are a promising technology that has the prospect of revolutionizing the way we assume about and manage online identity.  

Decentralized Identifier (DID) Key Component  

There are several key components of a Decentralized Identifier (DID):  

  1. DID Document: It contains information about the DID, including the methods that can be used to authenticate the DID and the associated services.  
  2. DID Method: This is a set of rules that define how a DID can be used and how it is stored on a distributed ledger.  
  3. DID URI: It is a unique identifier that is associated with a DID and is used to look up the DID Document.   
  4. DID Controller: This entity controls the DID and has the authority to update the DID Document.  
  5. DID Subject: This is the entity with which the DID is associated, such as an individual or organization.   
  6. Service Endpoint: This URL can access a service associated with the DID, such as a messaging or a payment service.  

Overall, these components work together to create a decentralized system for managing identity that is secure and transparent and gives individuals and organizations more control over their personal information.    

Verifiable Credential (VC)

Digital, cryptographically secured versions of the paper and digital credentials that individuals can represent to organizations needing them for verification. These are the main parties in the VC system:     

  1. Holder: A user who receives a Verifiable Credential after creating a decentralized identifier with a digital wallet app.  
  2. Issuer: The association signs a Verifiable Credential with their private key and issues it to the holder.  
  3. Verifier: A party that checks the credentials and can read the issuer’s public DID on the blockchain to verify if the Verifiable Credential the holder shared was signed by the issuer’s DID. 

Know How Centralized Identity System Flow Works with DID & Verifiable Credential?

Here is an example of how a centralized Identity system flow Works with DID and Verifiable credentials:    

1. Issuance

A subject (e.g., an individual) requests a verifiable credential from an issuer (e.g., a government agency). The issuer verifies the claims made by the subject and issues the verifiable credential, a digital record containing the claims, and a digital signature from the issuer.  

2. Storage

The subject stores the verifiable credential in a decentralized identity wallet, a secure digital repository for storing and managing decentralized identifiers and verifiable credentials. The subject’s decentralized identifier, a self-owned identifier that is unique and cryptographically verifiable, is use to identify & authenticate the wallet of the subject. 

3. Presentation

The subject presents the verifiable credential to a verifier (e.g., a service provider) as proof of a specific claim (e.g., age, employment status). The verifier can verify the verifiable credential’s authenticity by checking the issuer’s digital signature and the subject’s decentralized identifier.  

4. Verification

If the verifier trusts the issuer and the subject’s decentralized identifier, it can accept the verifiable credential as evidence and grant the subject access to a service or other benefit. Additionally, if the verifier does not trust the issuer or the subject’s decentralized identifier, it can request additional evidence or information from the subject.      

DID Protocols and Frameworks

Several decentralized identity protocols have been developed to enable the creation and management of DIDs. Some of the most widely used DID protocols include:   

World Wide Web Consortium’s (W3C) DID Specification: This is the primary standard for DIDs, and it defines a common syntax and structure for DID records, as well as a set of standard methods that can be used to create, update, and deactivate DIDs.  

Hyperledger Indy: This is an open-source framework for building decentralized identity applications. It includes a set of modular components that one can use to create and manage DIDs on various blockchains. 

Hyperledger Indy is a permissioned blockchain, meaning only authorized participants can access the network. Moreover, it can provide better privacy protection for identity information than public blockchains, where data is visible to anyone.   

Veramo: It is a JavaScript (JS) framework that makes it easy for anyone to employ cryptographically verifiable data in their applications. Developers can use DIDs, verifiable credentials, and data-centric protocols to provide next-generation features to their users.  

Overall, DID protocols provide a set of rules and standards that are used to create, manage, and use DIDs in a decentralized manner. 

Wrapping Up

With decentralized identity technology, many problems caused by centralized and federated identity management systems can be solved, including certificate fraud, slow and expensive verification processes, and data breaches. 

Moreover, you can connect with a reliable Blockchain company like Infrablok to get tools and infrastructure for creating DIDs on the permissioned and permissionless blockchains using Veramo and Hyperledger Indy. 

Public Blockchain vs Private Blockchain: Which Platform Is Better?

Posted on by Samita Tiwari

 

Blockchain technology started becoming popular in 2009 with the release of its first cryptocurrency, Bitcoin. Moreover, five years ago, when a burgeoning open-source community began producing complete enterprise platforms, including the programmable blockchain, Ethereum, Blockchain hit the market up to the next level. At this point, enterprises started thinking of adopting this technology, and along with this, the demand for hiring a leading Blockchain development company rose.    

Since the inception of blockchain technology, public and private blockchains have been debated. It’s actually very important to understand the big differences between these two when working in an enterprise environment.               

Public and Private Blockchain plays a huge role in companies looking for the perfect Blockchain-based solutions, so let’s move further to know which one will be perfect for your enterprise – Public vs. Private Blockchain.

What is Public Blockchain?

Public Blockchain Key Features

A Public Blockchain network is permissionless, which means anyone can use it without getting any sort of permission. Ethereum is one of the best examples of a Public Blockchain. Moreover, if you completely want a decentralized network system, then Public Blockchain is the best option.       

The public blockchain network was the very first Blockchain type in the revolution, and its best part is that it ensures that all the participants have similar rights no matter what the condition is.               

However, the integration of a public blockchain network into an enterprise blockchain process may be a bit problematic.   

Public Blockchain Core Features

The below-stated features make Public Blockchain an outstanding platform.

High Security

Most companies and other sites face issues related to hacking or data threats, and this is the reason each corporation wants to design a completely secure platform using Public Blockchain. 

Utilizing the security protocols of Public Blockchain, anyone easily stops hacking problems. Moreover, you can ensure better quality for any project.       

Open Environment

The term, Public itself defines that the network is open to each and everyone, so it doesn’t matter where you belong or from where you are using the network you can access the same without taking any permission.        

One can get multiple benefits from Blockchain technology and can also use it for secure transactions.       

Anonymous Nature

It is one of the most loved Public Blockchain features. As we all know, the great thing about this network is that it is open to all, but another good thing is that no one can identify who is using the network; this means if you are using the Public blockchain, then you will be shown as an anonymous user. Moreover, no one can see your details and identity; every piece of information will stay hidden.         

But people use it for illegal reasons also. Many criminals on the dark web usually use Bitcoin for illegal activities, and this is the biggest con of using Public Blockchain.     

No Regulations

Public Blockchain mainly does not have regulations that nodes require to follow. So, there is no limit to how one can benefit from this platform. But the major issue is that corporations cannot work in a non-regulated environment.           

What Is Private Blockchain?

Private Blockchain Key Features

A Private Blockchain is a permissioned network which means it is not open to all. It can be just used by a single association that has authority over the network. All the private Blockchain solutions include some sort of authorization scheme to determine who is accessing the platform.                         

Most of the time, for the internal networking system of the company, Private Blockchain solutions are adopted. Moreover, in this decentralized platform, you’ll get regulations that other platforms do not offer.                 

Small to large enterprises prefer using Private Blockchain as it offers high-level security, and using it; no other competitor can enter the platform and leak valuable information.    

Private Blockchain Core Features 

The features which are explained below make Private Blockchain one of the perfect platforms.

High Efficiency

On Private Blockchain network load is lesser in comparison with Public Blockchain, and this is because specific people who have access can use it.      

Moreover, when more people try using various features of the Public Blockchain, its speed gets hampered, but in the Private Blockchain, the speed issue doesn’t exist. 

Full Privacy

If I talk about a high privacy level, then Private Blockchain is more reliable than Public Blockchain. Usually, most enterprises deal with issues related to sensitive information as it gets leaked, then the massive loss can occur.   

So, it’s necessary for firms to use a network that can completely secure the company and other data. And this is possible by using a Private Blockchain. 

Higher Stability

Private Blockchain includes a limited number of people who can access the network, which is why it is more stable. Moreover, basically in each Blockchain platform, you need to pay a certain amount to complete a transaction. In the public platform, this amount usually gets increased due to poor speed in completing the transaction.    

But if I talk about a Private Blockchain platform, the fee remains the same as in these platforms’ transaction process occurs speedily.       

Empowering Enterprises

The corporation needs great technologies to secure and back up its process, which is why they usually prefer employing Private Blockchain solutions. Additionally, these solutions are mainly for the enterprise’s internal systems, which helps make secure infrastructure.      

Private vs Public Blockchain: Which Blockchain Platform To Use?

The parameters described below will help you know which Blockchain platform, Public or Private Blockchain.

1. Authority 

Private Blockchain is a big authority and is used by most of the small to big enterprises, but it’s not fully decentralized, but technically it is. On the other hand, the Public Blockchain platform is fully decentralized. At this point, Private Blockchain and Public Blockchain differ.        

2. Access 

Private Blockchain is not open to all, as it provides limited access means the corporation who requests to access the same can only use it.              

Whereas a Public Blockchain network can be accessed by anyone, there are no restrictions in using it. Moreover, anyone can register on it and take part in the transaction process.  

3. Transaction Cost 

The transaction cost in the Public Blockchain platform can go higher, and this is because the number of nodes on the platforms slows down the performance. And this results in taking a long time to process the transaction request.        

Whereas in the Private Blockchain Platform, the amount related to the transaction is very low. The reason transaction costs do not go higher is the limited resources using it, and the transaction speed is faster.                       

4. Consensus 

In a Public Blockchain, numerous nodes are present that have no restrictions in joining the consensus process, which is why it is free to participate in the process.  

Private Blockchain decides who can join the consensus, resulting in limited node participation. 

5. Data Handling 

Well, in the Public Blockchain, everyone can read and write the ledger, but once the information is saved into the ledger, it can’t be changed nor edited.      

Whereas in a Private Blockchain, a single corporation can participate and only add and read the information on the ledger. Moreover, they have the authority to delete a ledger.

So, in the race of Private Blockchain vs. Public Blockchain here, Private Blockchain is the winner.                        

Public Blockchain vs Private Blockchain: Comparison

Public vs private blockchain Comparison

Conclusion

In the race of Public Blockchain vs. Private Blockchain, it’s difficult to say which one is better as both have their own pros and cons and are suitable for different sorts of tasks. So, picking the right platform totally depends on the enterprise’s project’s requirements.

Additionally, if you wish to effectively use a Public or Private Blockchain platform, it is very crucial to seek advice from a Blockchain expert working in a leading Blockchain development company (Infrablok). By doing so, you will be able to get the right direction of using a suitable platform for your business project.

A Brief Introduction To The Decentralized Oracle Network

Posted on by Monica

 

Blockchain technology supports the multibillion-dollar cryptocurrency industry and promises to revolutionize how we trade, interact, or exchange finances. As a decentralized digital ledger, Blockchain eradicates the requirement for third-party validation while guaranteeing best-in-class security standards, immutability, and transparency. The diverse participants in the channel are named network nodes, and they are the ones who manage everything.     

In addition to its merits, Blockchain technology also has some loopholes. Using one Blockchain system to trade data is easy but exchanging data across multiple Blockchains is more challenging. This is where Blockchain Oracles come into space. Oracles function as a bridge for linking Blockchain ecosystems to exterior data inputs & outputs. Besides enhancing the working capacity of a Blockchain network, they also ensure the accuracy of the data statistics available to users. 

This blog will help you understand what Blockchain Oracles are and how a Decentralized Oracle Network works. So, let’s get started!

What Is Blockchain Oracle Network?

Blockchain Oracles act like a bridge to connect the on-chain and off-chain worlds. They play a key role in letting deterministic Blockchain access non-deterministic values. But having a single oracle provide value to the Blockchain challenges the trustless principle of Blockchain. Being dependent on this single oracle might be risky; what if that oracle itself is compromised or is getting data that was compromised before reaching the Oracle?  

To solve this problem, the Decentralized Network of Oracles is designed in such a way that oracles form the core of this network, forming an infrastructural layer. Here they work beside Blockchain, gathering, processing, and then supplying the verified aggregate result to the smart contract in Blockchain.   

Blockchain Oracles Key Functionalities   

Oracles provide several functionalities but here view the key functionalities of it:   

  • Collecting data from the off-chain world  
  • Send the data to a smart contract on Blockchain by using a signed message  
  • Store the data in the smart contract’s storage so that it remains accessible

Note: The stored data can be accessed via the smart contract’s “retrieve” function call. 

Determine The Type Of Oracle 

An oracle can be determined based on the type of data required by the Blockchain as described below-  

Immediate Read 

It is used when a result is required on a just-in-time basis. For example, to verify someone’s identity.

Publish Subscribe

This is used when the required data keeps changing. Whenever a change occurs, it is notified by polling a smart contract or by keeping a watch on the updates via off-chain triggers. For example, weather updates.  

Request Response

It is used when users need to use only a small part of a big data set at any given time. In this scenario, data is too large to be stored in a smart contract; therefore, a combination of on-chain smart contracts and off-chain infrastructure is used. 

A request is sent from the Blockchain to off-chain infrastructure, which keeps monitoring for requests, processes them, and returns results. This being an asynchronous process, follows multiple steps. For example, geolocation data for tracking and tracing in the supply chain.

The steps for a request- response oracle set up

How Does The Decentralized Oracle Network (DONs) Work?

We can have a single or mixed type of oracles in the network. Understand how the decentralized oracle network works with Chainlink’s architecture for the data feeds. These data feeds enable Smart Contracts to quickly connect with the real world and include the following components –    

Consumer 

An application that uses data feeds. It may be an on-chain or off-chain application, where its contracts called consumer contracts calls functions on the proxy contract and retrieve information from the aggregator contract.

consumer

Proxy Contract 

They are proxies that are on-chain contracts pointing to the aggregator for data. With the use of proxies, the upgradation of the underlying aggregator becomes seamless due to zero service interruption to consuming contracts. They may vary for different data feeds as per the application requirements.

proxy contract

Aggregator Contract    

This contract receives data updates periodically from the decentralized oracle network. Then it stores the aggregated data on-chain for the consumers to retrieve and act upon it in the same transaction.

Connecting smart contracts to external data (off-chain) is done using a decentralized oracle network. Chainlink handles API requests by 1:1 by an oracle. It does this by using the following models – 

Basic Request Model   

This model is used when data is required from a single oracle source.      

Contracts Overview 

The following diagram shows the flow of its contract, the open-source code of which is available at the Chainlink Github repository.

Architecture Request Model Image Reference: Architecture Request Model

Chainlink Client  

It is a parent contract of the basic request model that allows smart contracts to take data from oracles. It sends the required encoded information via transferAndCall function request to chainlink oracle via LINK token.   

LINK Token  

It is an ERC-677 compliant token that executes the transferAndCall request sent by ChainlinkClient. It lets token transfer and triggering of logic in a single transaction in the receiving contract via onTokenTransfer call.   

Oracle Contract  

These run beside off-chain oracle nodes and are owned by oracle node operators. They are responsible for handling on-chain requests received via onTokenTransfer through LINK Token. 

Oracle Request  

It must be made by the client contract that initiated the process with the following must-haves:   

  • Oracle Address – which oracle to contact 
  • Job ID – which tasks to perform  
  • Callback function – through which the oracle shall send back the response  

Completion  

On completion, a fulfillOracleRequest function returns the result to ChainlinkClient via a defined callback function.   

Oracle Node (Off-chain) 

It listens to the events of its on-chain smart contract. On listening to the OracleRequest event, it uses the data emitted to execute the task.  

For example, a GET request to an API retrieves data, parses the response, converts the result into Blockchain-compatible data, and then sends the result back via the fulfilllOracleRequest function to the oracle contract.    

Decentralized Data Model 

This model is used when data is aggregated from several independent oracles nodes in a decentralized oracle network. 

Data Aggregation 

Each data feed is updated by independent oracle nodes of the decentralized oracle network, and the AccessControlledOffchainAggregator is used to aggregate the data on-chain. The aggregation process is improved by Off-Chain Reporting (OCR). 

Shared Data Resource 

Every data feed has its own properties, and each data feed is created by a community of users. These users rely on accurate data in smart contracts. In order to enhance the quality of the data feed, more users are added that add their contribution to the data feed, thus, enhancing its quality.   

Decentralized Oracle Network (DON) 

It consists of a consumer contract, a proxy contract, and an aggregator contract. DON updates each data feed where the number of participating oracles in each data feed varies. Every oracle operator is awarded for publishing data. For any update to take place, the data feed aggregator contract must have a minimum number of oracles to respond in an aggregation round, or the update will not be published. This data is validated and aggregated by a smart contract which forms the latest response of the feed.   

Updates are received by aggregators from DON only when a trigger happens on the Deviation Threshold (when off-chain values vary by more than the specified variation threshold from the on-chain value) or Heartbeat Threshold (after a specified amount of time) while in an aggregation round. The first met condition triggers an update to the data.

Off-Chain Reporting 

In Off-Chain Reporting (OCR), nodes communicate off-chain using a peer-to-peer network. A lightweight consensus algorithm is executed during the communication process. During this communication process, every node returns its observed price and signs it. The result is then aggregated and sent as a single value, thus saving a good amount of gas fees. 

During the process, nodes regularly elect a new leader who is responsible for the execution of the whole process. The leader repeatedly asks their followers to send freshly signed observations & aggregates them into a report. The report is then sent back to followers for verification of its validity. If the required number of followers approves the report, then a signed copy is sent back to the leader, who then combines it into a final report along with the signature of the followers who approved it, and then the leader broadcasts that report to the whole network.    

As per a randomized schedule, nodes in the DON try to transmit the final report to the aggregator contract. The aggregator contract then verifies that the required number of nodes have signed the report and reveals the median value as an answer to the consumers, along with a block timestamp and a round ID.    

During transmission, the Blockchain is watched by all the nodes for the final report, and in it, if any single point of failure is discovered, then that is removed. A round-robin protocol is used when the desired node does not get the transmission confirmed within the given time period; in this case, other nodes keep transmitting the final report till the time one of them gets confirmation.   

Ending Words

Blockchain technology can only be expanded globally if a secure infrastructure facilitates communication between smart contracts and external sources. Without oracles, smart contracts cannot attain their full potential, as they would only rely on on-chain data for work. 

With decentralized oracles, Blockchain networks can ease different system risks & operational limitations. In addition, Blockchain oracles can provide businesses with an interface that is trustless, secure, and safe for them to develop and grow within a decentralized economic system; if you also want that, then connect with a reliable Blockchain development company (Infrablok).

Moreover, if you are seeking help to call APIs from Ethereum smart contracts using chainlink oracles, follow the steps present in our tutorial.

Note: To write informative information on this blog, we referred Chainlink Architecture doc! 

Blockchain Technology vs Cryptocurrency: Know The Difference

Posted on by Samita Tiwari

 

In the business world, people have a lot of confusion regarding Blockchain and Cryptocurrency. Well, they both are different terms often employed interchangeably.

Cryptocurrencies are digital currencies that make use of Blockchain as a ledger for stowing records of crypto transactions. Whereas, Blockchains have many benefits beyond cryptocurrencies which includes storing and accessing medical data, supply chain & logistics, and financial records.

To help you better understand here in detail, I have explained a few crucial things related to Cryptocurrency vs Blockchain technology.

So, let’s get started!

Blockchain Overview

It is one of the trending technology which is used to store records or electronic databases using a distributed ledger system. Blockchain technology stores enormous amounts of data in (such as Cryptocurrency transaction records) blocks, groups, or hashes.

These blocks are distributed across numerous computers or a “distributed ledger.” Once each block reaches its storage limitation, it is “chained” to a block loaded previously, and a new block comes into service.

Blockchain Key Features

 

Blockchain Working

A Blockchain ledger includes two sorts of records, individual transactions & blocks. The primary block comprises a header and information related to exchanges occurring within a set time. The block’s timestamp is utilized to make an alphanumeric string called a hash.

After the primary block has been made, each resulting block in the record utilizes the past block’s hash to compute its own hash.

Before adding another block to the chain, its authenticity should be checked by a computational cycle called consensus or validation. Currently, in the Blockchain process, a bulk of nodes in the network must consent that the new block’s hash has been calculated accurately. Consensus guarantees that all duplicates of the Blockchain distributed ledger share a similar state.

When a block has been added, it can be referenced in ensuing blocks but cannot be altered.

If somebody endeavors to trade out a block, the hashes for past and ensuing blocks will likewise change and disturb the record’s common state.

At the point when consensus is not conceivable, different PCs in the organization know that an issue has happened, and no new blocks will be added to the chain until the issue is settled.

Normally, the block causing the mistake will be disposed of, and the agreement cycle will be rehashed.

Pros And Cons Of Using Blockchain

Pros

  • Decentralization
  • Network distribution
  • Low costs for users

Cons

  • High implementation costs
  • Private keys
  • Inefficiency
Read More: Accessing Real Time Data Using Chainlink Oracles

Cryptocurrency Overview

A Cryptocurrency is a digital store of value primarily for buying and selling services, goods, or property. Popular examples include Bitcoin, Ethereum, and Litecoin.

No centralized authority issues or controls these digital currencies, so they are cryptographically protected against counterfeiting. Moreover, Cryptocurrencies are also known as tokens or coins.

Cryptocurrency Key Features

Cryptocurrency Working

Cryptocurrencies operate on a distributed public ledger known as Blockchain, a record of all transactions revamped and held by cash holders.

Units of digital currency are made via mining, which includes utilizing the PC’s ability to take care of muddled numerical issues that produce coins. Users can likewise purchase the monetary forms from agents, then store and spend them utilizing cryptographic wallets.

Assuming that you own cryptographic money, you own nothing unmistakable. What you own is a key that permits you to move a record or a unit of a measure starting with one individual to another without an authorized third party.

Moreover, Bitcoin has been around since 2009, cryptocurrencies & applications of Blockchain technology are still emerging in financial terms, & more benefits are anticipated in the future. Transactions involving bonds, stocks, & other financial assets, could ultimately be traded utilizing technology.

Pros And Cons Of Using Cryptocurrency

Pros

  • Protection From Inflation
  • Self-governed & Managed
  • Simple Currency Exchange

Cons

  • Illegal Transactions Can Be Done
  • No Refund Or Cancellation Policy
  • Susceptible To Hacks

Blockchain Vs Cryptocurrency: Similarities Between Both

The factors explained below will help you know the similarities between Blockchain technology vs Cryptocurrency.

1. Intangible

Blockchain technology and cryptocurrencies are both intangible. Cryptocurrencies are intangible digital coins that no one can hold physically, like the US dollar or the Indian rupee.

The Blockchains utilized for storing cryptocurrencies do not exist in a single area or the form of a physical data center.

2. Advanced

Cryptocurrencies and Blockchains are technologically advanced. Blockchain is the underlying technology behind cryptocurrencies. Blockchain is more refined and secure than traditional databases.

On the other hand, Cryptocurrencies are more advanced in comparison with physical or paper-based currencies.

3. Interdependent

Blockchain came into reality to record bitcoin transactions (the world’s first cryptocurrency). All major cryptocurrencies have Blockchains for storing transactions.

For example, if someone buys a new bitcoin, its data related to the transaction will be recorded in a bitcoin Blockchain.

Difference Between Blockchain Technology and Cryptocurrency

Well, Blockchain platforms without Cryptocurrency do exist — and may also be a better bet for some use cases. We can say Cryptocurrency is merely an app running on top of a Blockchain. The model changes in some way without Cryptocurrency (coins), but it’s still possible to build a valuable platform. Here are the few major differences between both:

1. Monetary Value

All cryptocurrencies, whether Bitcoin or Ethereum, have their own economic value. You must have heard of Bitcoin hitting a high of $65,000 or Ether reaching $4,000. Whereas, Blockchain does not have any monetary value.

2. Usage

Blockchain technology is used for recording transactions in MedTech, FinTech, as well as logistics. On the other hand, Cryptocurrencies are digital tokens, or digital money, used for buying goods & services, plus they can be used for investment too.

3. Transparency

Being a public ledger, Blockchain is highly transparent. Anyone can join a Blockchain network & view the data which is available. On the other hand, cryptocurrencies offer anonymity, meaning no one can know or see the source or destination behind the transaction.

4. Mobility

Blockchain technology is completely decentralized and distributed worldwide, meaning there is no particular location where data is recorded. On the other hand, cryptocurrency is a part of the Blockchain and can be accessed using smartphone wallets. Say you have an Ethereum wallet; it can be used at any location for transaction purposes.

Conclusion

As we all know, that Blockchain is one of the hot topics around the business world, so several people are just exploring this technology. People often confuse Blockchains with cryptocurrencies. Some tend to believe that they are just synonyms.

Hopefully, this “Blockchain Technology vs Cryptocurrency: Know The Difference” blog will help differentiate between the two.

Wanted to take this opportunity to introduce Infrablok, a new gen web 3.0 tools & services company that specializes in providing blockchain solutions based on the needs of any business.

Everything You Need To Know About Blockchain Oracles

Posted on by Monica

 

Blockchain Oracles provide a link between off-chain and on-chain data, i.e., they act like a bridge between the data of the real world and the smart contracts of the web3 world. It means that oracles are the main source that gives data to smart contracts, which helps broaden the scope of smart contracts and Blockchain applications.     

But it does not mean that Blockchain oracles are the data source as they work at the network’s core, forming an infrastructural layer that works beside Blockchain. It gathers data by querying external data sources, verifying it, and then supplying the resultant information to smart contracts in the Blockchain.

Blockchain Oracles

Moreover, with Oracles, the issue of connecting the two worlds was resolved, but Blockchain’s very basis seemed deluded. The trustworthiness and reliability of Blockchain are based on its concept of being decentralized & deterministic, but none of it was conceptualized in Oracles. Thus, giving rise to the Blockchain Oracle Problem…  

Major Problem Related to Blockchain Oracle 

Anything that is written on the Blockchain is immutable, which makes it trustworthy, but anything that Oracle supplies is not immutable until it reaches the Blockchain, which means, data might get counterfeited or tweaked by anyone in the Oracle before it gets registered in the digital ledger over Blockchain. 

It directly conflicts with the Blockchain’s fundamentals of security, authenticity, and trust, thus creating the Blockchain oracle problem.

Smart contracts work with an aim to get a deterministic answer to questions like, Will party A win the election? Or will the stock of B generate profit? Getting a deterministic answer to these questions through smart contracts is based on getting to the consensus of true/false stored in its distributed ledger. But to reach the consensus, smart contracts require data from the real world, like market predictions or the result of a game or an election result; feeding data to the smart contracts is where oracles come into play. Though they are required for data yet, being controlled by third parties outside of blockchain makes them untrustworthy.

Types of Oracles

The solution to the above problem lies in decentralizing these oracles and creating a decentralized network of oracles. Designing a network of oracles would require choosing the right type of oracle, depending on what sort of application you want to design and other requirements. The Blockchain oracles are classified into three different types that are: 

1. Direction Of Information Flow 

Depending on the direction of the information flow, oracles are categorized as follows – 

Inbound Oracles

Inbound Oracles fetch data from the real-world (off-chain) and deliver it onto a Blockchain network for smart contract consumption.

These oracles are utilized to power Chainlink Price Feeds, offering DeFi smart contracts on-chain access to financial market data.

Outbound Oracles

Outbound Oracles are just the opposite of inbound oracles, which permit smart contracts to send commands to off-chain systems to execute certain actions.

It can include telling the storage provider to store the supplied data, reporting the banking network to make a payment, or pinging an IoT system to unlock a bus door once the on-chain rental payment is made.

Computation Oracles

Computation Oracles are a mixture of both inbound and outbound oracles. Whenever an app needs to compute data after receiving a certain value from the Blockchain’s smart contract (on-chain), it computes the data off-chain & sends the result to the smart contract.

2. Source Of Information 

It helps in identifying oracles based on the Source of information origin and is categorized as follows –   

Software Oracles 

Software oracles are used when an application requires data from an online source (internet). They can collect real-time information from servers, websites, databases, APIs, or any online digital source available on the internet. 

For example, an oracle can give real-time weather updates to an insurance application’s smart contract that manages claims of damaged crops due to bad weather.   

Hardware Oracles 

When an application requires data from the real world, then hardware oracles are used. They collect data with the help of scanners, sensors, and IoT devices. 

For example, tracking the geolocation of goods in a supply chain requires a QR code to be scanned and sent that code to the Blockchain’s smart contract. 

Human Oracles

When an application requires specialized skills in mathematics, finance, or any specialized field, then a human with the required set of knowledge can act as an oracle. In order to reduce the chances of fraud, humans can be cryptographically identified. 

For example, an application to settle an arbitration dispute might require human intervention when two parties disagree on the settlement. A human oracle would then check previous data and find the solution. 

3. Centralized/Decentralized 

An oracle may be centralized or decentralized, as described below: 

Centralized

An oracle with a single source of information or being controlled by a single entity is called a centralized oracle. Having a fixed source makes them more vulnerable and gives the whole network a single point of failure.

It can act as a bridge between on-chain and off-chain data but will not be trustworthy and, thus, must only be used when no other alternative is available.

Decentralized

An oracle network that has multiple sources of information or is not controlled by a single entity. Being off-Blockchain, it does not guarantee 100% trust. The trust divides into multiple nodes as they give results only after a majority consensus is reached amongst participating nodes giving it much higher credibility. Data fetched and processed by decentralized oracles are more accurate and far more trustworthy than centralized oracles.

Depending on the application, an oracle might belong to any type explained above or have more than one type of functionality. 

For example, suppose the source of information for a private application is a single data source. In that case, it will be centralized software inbound oracle, whereas if an application requires settling claims for delayed delivery of a package, then it will be a decentralized hardware inbound oracle. 

The Best Blockchain Oracles to Use In dApps  

There are various options available that provide Blockchain oracles to be integrated with dApps. Some of them are – 

Chainlink 

In the decentralized network, you can pick the number of nodes required, the collateral those nodes should have, and data sources are collected to enter the data into the Blockchain’s smart contract. 

Moreover, it supports Ethereum, BNB, Polygon, Avalanche, Fantom, and Arbitrum & provides support to integrate it with other chains.  

Oraclize 

It ensures data authenticity while connecting dApps with external web APIs. It supports public chains like Ethereum, Bitcoin, Rootstock, EOS Mainnet, Testnet, and private Ethereum-based chains. 

API3 

It provides Airnode as its 1st party Blockchain oracle and ensures to connect via web API directly without any requirement of any third parties. It needs to be set up once it is completed; it can handle all future management and maintenance. 

DIA 

Decentralized Information Asset (DIA) is a multichain, open-source data, oracle solution for decentralized finance. It allows the customization of data feeds in the context of data sources and methodologies. It supports EVM chains, Solana, Polkadot, etc. 

Moreover, many more oracle solutions are available, the choice of which fully depends upon the application’s needs. 

If you want to choose one of the best Blockchain Oracles for dApp development, consider the following criteria to make the right decision… 

Factors To Consider While Picking Blockchain Oracles

Where To Use Blockchain Oracles? 

You can use oracles to create more advanced decentralized applications (dApps). While there are infinite possibilities to use Blockchain Oracle, the use cases with the most current adoption are below. 

Decentralized Finance (DeFi) 

An enormous portion of the decentralized finance (DeFi) ecosystem needs oracles to access financial data about assets & markets.   

For example, decentralized money markets utilize price oracles to specify users’ borrowing capacity and inspect if users’ positions are undercollateralized and subject to liquidation. 

Similarly, to increase capital efficiency, synthetic asset platforms and automated market makers (AMMs) use price oracles to help peg token values to real assets. 

Dynamic NFTs and Gaming 

Using Oracles, smart contracts can be used for non-financial reasons, such as dynamic NFTs (Non-Fungible Tokens) whose appearance, value, or distribution can change depending on the time of day or weather.  

Furthermore, compute oracles are used to generate verifiable randomness that projects use to assign randomized traits to NFTs or to select random winners to receive high-demand NFTs. In addition, On-chain gaming apps also utilize verifiable randomness to make more engaging & surprising gameplay experiences. 

Insurance 

Insurance smart contracts employ input oracles to prove the occurrence of insurable events while claims processing, opening-up keys to physical sensors, web APIs, legal data, and satellite imagery.  

Output oracles can also provide insurance – smart contracts to make payouts on claims utilizing other Blockchains or traditional payment networks. 

Wrapping Up

A trustworthy mechanism that facilitates the communication between smart contracts & the external world is crucial to the global adoption of Blockchains. Without Blockchain Oracles, smart contracts would have to depend only on details existing within their networks, which would greatly confine their capabilities.  

Decentralized Oracles have the potential to introduce safeguard mechanisms that could eradicate systemic risks from the Blockchain ecosystem. Blockchain Oracles remain one of the crucial building blocks to be enforced in a reliable, secure, & trustless manner for the Blockchain ecosystem to grow. Moreover, these decentralized oracles together form a decentralized oracle network (DON); click here to know more about it!

Additionally, if you are looking forward to using Blockchain Oracles in your next business project, feel free to connect with one of the reliable Blockchain development companies (Infrablok). Doing so, you will get a professional development team who will help you get things done as per your needs. 

Accessing Real Time Data Using Chainlink Oracles

Posted on by Monica

 

Blockchain and its new cryptocurrencies and chains are becoming popular day by day, making it one of the fastest-growing technologies in the business world. The first chain that came into the market after Bitcoin was Ethereum which brought the concept of “smart contracts.”  

These smart contracts are paving the way for solving various real-world problems in the immutable, decentralized, distributed, yet trustworthy network. It means that Blockchain is no longer fixed for the cryptocurrency market. But it can also be employed to solve realistic problems by setting up terms or agreements in the form of some computation done in smart contracts (written in a programming language).

With this breakthrough, new ideas sprang up that brought solutions to the problems of the centralized world into the decentralized world. But with this, some significant bottlenecks in the advancement of Blockchain came up.    

Before discussing accessing real-time data using Chainlink Oracles, it’s also essential to know the Blockchain technology bottlenecks. By knowing this, you can overcome challenges in less time. 

3 Major Bottlenecks In The Advancement Of Blockchain

Blockchain Oracles Problems

1. Every Transaction In Blockchain Takes Place On Blockchain

Every computation, be that solving a simple calculation from the Blockchain data (called on-chain data) or a complex computation that involves data from the real world (called off-chain data), in real-time, is needed to take place Blockchain itself.  

It means that there had to be a way devised for an isolated system like Blockchain to access not only its on-chain data but also off-chain data. If this is achieved, putting a massive amount of data (off-chain data) on Blockchain would create extremely high levels of redundancy in every system that processes blockchain transactions.   

2. No Relation Between Real World Data & Smart Contracts

There is no link between off-chain data & smart contracts, which means smart contracts could not process any computation related to off-chain data.   

3. Bigger Transaction = Higher Cost

If any real-world problem ought to solve with Blockchain, then data has to be migrated over to Blockchain to solve that transaction, which means more time consumption will lead to a higher transaction (gas) cost.

How To Access Real-Time Data Employing Chainlink Oracles?

To solve the real-world computation off-chain & feed the solution to the on-chain smart contract, some mechanism that can make off-chain data immutable, decentralized, distributed, & secure was required. To make this possible, Chainlink created Oracles and combined them to form a Decentralized Oracles Network (DONs). 

Oracles acted as entities that could connect off-chain data with the Blockchain’s smart contract. Oracles can solve all off-chain computations by preserving all the core fundamentals of Blockchain & acted as a bridge to feed the solution to the Blockchain’s smart contract. 

Additionally, they enabled 2-way communication by creating a communication link between on-chain & off-chain data. It means all high costing computations can now be done off-chain while keeping it immutable, decentralized, distributed, & secure. 

Oracles can achieve this connectivity by interfacing with external APIs & data feeds, allowing them to pull data for or push data from a smart contract. 

Did You Know One Oracle Can Mislay Whole Trustworthiness?

Well, one Oracle could not be called decentralized or distributed as it certainly wasn’t giving immutability. This resulted in a loss of whole trustworthiness as data was received from outside a blockchain network. To feed any data to Blockchain, any system outside the Blockchain must have the same fundamentals. 

Decentralized Oracle Network (DONs) To Maintain Credibility

To maintain trustworthiness, DONs were formed. The DONs is a network where several Blockchain oracles run by independent node operators are selected to retrieve & validate data from multiple off-chain sources. It ultimately helped achieve a Blockchain kind network outside of Blockchain in the real world to process any off-chain data.  

It works as a Blockchain because the oracle nodes of these DONs have a resultant value aggregated to get a single trusted data point fed to the on-chain smart contract for further execution.  

Moreover, the independent network of multiple DONs running simultaneously and independently of each other formed the chainlink network. In simple terms, Chainlink is a decentralized network of Oracles that lets users securely connect off-chain data to on-chain smart contracts & vice versa. 

Know How Users Can Securely Connect Off-Chain Data To On-Chain Smart Contracts & Vice Versa

Here we have given an example that will help you understand the working to know how users can securely connect off-chain data to on-chain smart contracts & vice versa. 

how users can securely connect off-chain data to on-chain smart contracts

Assume there is an insurance company that insures packages delivered across the globe. John visits this company and asks to insure his package that requires to reach its destination in 3 days. In this case, if the package gets delayed due to any reason related to the flight carrier, John gets the claim. But, in case of delivery delays, various checks are done by the insurance company to ensure that the package was not delivered on time due to the lagging of the flight carrier; thus, settlement of the claim becomes a lengthy process. 

To solve the above issue, the insurance company decides to opt for a Blockchain-based solution, & to fetch flight data in real-time, they opt for oracles. This oracle-based insurance company will monitor data coming through oracles via API and transmit the required information to the Blockchain. Then, with the help of smart contracts (based on the preset agreement between the client & company) and oracles, the Blockchain will determine if the events are occurring as per the preset agreement or not through consensus.

Smart contracts will then control the action to release a claim or not. Being on Blockchain, the whole process gets transparent, allowing the clients to track the status of the flight, henceforth, their packages. Thus, making it automated and trustless increases faith in the process, paving the path for smoother and faster claims.   

Wrapping Up

Chainlink is also developing optional attributes such as advanced oracle computations, oracle and data privacy, and much more. By ensuring high security & credibility guarantees on par with the Blockchain, Chainlink oracles enable more refined smart contracts. Moreover, to know major things related to Blockchain Oracles, click here. 

If you are looking to access real-time data using Chainlink Oracles or want to overcome Blockchain oracle issues in your blockchain ecosystem, take help from the best Blockchain development company (Infrablok). It will help by offering innovative Blockchain solutions.

Ethereum Vs Ethereum 2.0: Will ETH 2 Replace Ethereum Classic?

Posted on by Samita Tiwari


Cryptocurrencies’ invention provided a new way to make investments and payments. With cryptocurrencies, Blockchain technology came into reality, revolutionizing the global markets. Blockchain, with cryptocurrencies (Bitcoin and Ethereum), is empowering various industries like healthcare, agriculture, banking, and more. It offers secure transactions at an affordable rate.  

Moreover, Bitcoin is the very first cryptocurrency in the crypto space. Ethereum is the 2nd largest cryptocurrency and is home to several NFTs, DeFi, and dApps projects. In 2015 Ethereum’s first version came into existence.        

But as we all know, timely updates enhance the working of technology and make it more user-friendly, and to meet the current market standard, Ethereum decided to roll out Ethereum 2.0 in 2022. Ethereum 2.0, or you can say “Serenity,” “Eth 2.0,” or the “New Ethereum,” aim is to give users sustainability and faster transaction speed.    

Well, now you might be thinking about Ethereum vs Ethereum 2.0 which to buy? To help you make a suitable decision here, we have compared several factors that will help you get a clear understanding of Ethereum and Ethereum 2.0.  

So, let’s get started!

Ethereum Overview

Advantages of Ethereum

Vitalik Buterin, a Canadian-Russian programmer, launched Ethereum’s first version in 2015. It is an open-source, free, decentralized Blockchain platform that works on smart contract functionality and specifies a peer-to-peer network among its users.     

With the popularity of smart contracts by Ethereum, worldwide programmers are able to use Blockchain to form dApps. Ultimately resulting in giving way to some of the significant crypto innovations, such as NFTs & Blockchain-based games.        

Key Features 

  • Data Coordination 
  • Permissioned networks 
  • Private transactions 
  • Tokenization 

Ethereum 2.0 Overview

Ethereum 2.0 Update

Ethereum 2.0 is not completely a new Blockchain but an upgraded version of Ethereum. The governance mechanism of the network is modified from proof-of-work (PoW) to proof-of-stake (PoS). Whereas the new Ethereum update will help catch up with some of the newer Blockchains, including Polkadot, Cardano, Solana, etc., already using the PoS model.             

Moreover, the PoS model is not sudden or unexpected. This update has been a part of Ethereum’s roadmap for a long time to attain more security, sustainability, and scalability.       

Key Features     

  • Sharding
  • Faster Transaction Speed
  • Secure 

If you want to know more about ETH 2.0, connect with the expert working in the reliable Ethereum app development company. By doing so, you will be able to get a clear understanding of how Ethereum can help you grow your business.  

Difference Between Ethereum And Ethereum 2.0 

The below-stated crucial features will help you know the difference between ETH and ETH 2 and analyze which one is better (Ethereum vs Ethereum 2.0). 

Consensus Mechanism Modifications

Ethereum works on the proof-of-work (PoW) mechanism, whereas Ethereum 2.0 works on the proof-of-stake (PoS) mechanism. Moreover, the PoS mechanism helped Ethereum 2.0 become more decentralized in comparison with older Ethereum. 

Since using the latest version of Ethereum, users don’t have to buy expensive rigs, and anyone with a specific amount of ETH can partake in mining new tokens. Resulting in more user participation leads to more decentralization.        

Sharding

Another important update that makes Ethereum 2.0 different from the classic Ethereum is sharding. Sharding is a phenomenon in which data is distributed in various machines to enhance processing speed. Likewise, in Ethereum, it has been accomplished by orienting 64 shards.  

Each shard is a new chain connected to the older Ethereum chain to link with the previously recorded data. Moreover, all work the same as the old one, but the difference is that Ethereum 2.0 workload has been distributed onto multiple databases.        

Sharding directly manages Ethereum’s scalability issues. The classic Ethereum can only handle 15 transactions, whereas Ethereum 2.0 is much more efficient and can complete 100,000 transactions per second.   

To make this point clear, consider the older Ethereum Blockchain as a one-lane highway with a lot of traffic. However, following the recent upgrade (Ethereum 2.0), 63 new lanes have been added. By doing this, the flow of traffic has been smoother, while its speed has increased.  

Beacon Chain

We already discussed that the new Ethereum version that is Serenity, or Eth 2.0, is divided into 64 distinct chains and how validators are fixed to add a new data block to them. In addition, one Blockchain connects all 64 sharded chains to control the same, enabling transactions throughout the network. This central element is a major part of the entire ecosystem and is known as Beacon Chain.   

Beacon Chain’s main functionality is that it randomly nominates the next validator and monitors its activity. Moreover, it’s also liable for slashing the staked amount if an exploitative trial is witnessed. The randomness in validator selection is crucial to guarantee that the system is not biased toward a specific participant.   

Cryptocurrency

Both networks, Ethereum Classic and Ethereum 2.0 have a native cryptocurrency with accounts & balances that can be transferred. On Ethereum Classic, it is known by the name of ether or ETC, and in Ethereum 2.0, it is known as ether or ETH.   

In both networks, the currency can be split up to 10^18, making the smallest unit, the “Wei,” 0.000000000000000001 of 1 ETH or ETC.

Ethereum vs Ethereum 2.0: Comparison Table

Ethereum vs Ethereum 2.0: Comparison Table

Ethereum 2.0 vs Ethereum: Which One Is Better?

The factors stated here will clear all your doubts related to Ethereum Vs Ethereum 2.0: Which One Is Better? Ultimately aiding you in picking the best one for your business activities.  

1. High Performance

Ethereum 2.0 utilizes PoS as a consensus mechanism and has a flexible monetary policy with no supply cap, and the database is fragmented, so more shards can process more transactions collectively. As a comparison, ETC currently has a throughput of ~680,000 transactions a day. This is perfectly comparable to high-value systems such as Fedwire (US) and Target2 (EU), which settle ~$11 trillion a day. 

However, Ethereum 2.0 will handle many times the number of transactions. This means ETH 2.0 will be perfectly comparable, in small transaction performance, to PayPal, Visa, or even the proposed Libra currency by Facebook. 

2. High-Level Security

The main goal of the new Ethereum community is to ensure high-level platform security for developers and investors. If I talk about older days, then each day, several hacking incidents on different Blockchains emerge, resulting in people losing their money. But moving toward a PoS system will surely minimize the threat of cyberattacks.  

Moreover, Ethereum 2.0 can also deal with a threat that comes with a 51% attack risk. Being a decentralized platform, Ethereum’s developers must ensure that no single party tends to take over the bulk of the network.   

3. Sustainability

Eco-friendliness is the most important thing a new project can do to gain a foothold in the Blockchain world. Ethereum’s Blockchain was dependent on mining under the old PoW consensus model. 

To mine bitcoins, miners needed highly complex computing devices that consumed large amounts of electricity. But, the newer PoS model makes Ethereum 2.0 more eco-friendly and sustainable by eliminating the entire mining network.   

4. More Scalability

Ethereum 2.0 has the capability of hosting numerous DApps and DeFi services. According to research, it has been found that Ethereum is home to nearly 80% and 90% of the total DeFi apps and NFTs, respectively. This activity generates a great deal of traffic and thousands of transactions every single day.  

However, the classic Ethereum Blockchain can only manage 15 transactions each second. This resulted in users paying high transaction fees and dealing with delayed transfers.   

Wrapping Up

After considering all the facts and figures related to Ethereum and Ethereum 2.0, we can clearly say that in the war of Ethereum vs Ethereum 2.0: Will ETH 2 Replace Ethereum Classic?, ETH 2 is the winner. 

New Ethereum updates have made the crypto market more strong. The modification in the consensus mechanism proposes transparency, scalability, and enhanced security on the network. It will be a remunerative deal for enterprises and individuals. 

Moreover, if you are finding a reliable partner to work on Ethereum-based projects or need any suggestions related to Blockchain-related projects, connect with the best Blockchain company (Infrablok).

Frequently Asked Questions (FAQs)

 

Ques 1. What are the 3 Phases of Ethereum 2.0?

Ans 1. Ethereum 2.0 is planned to be launched in 3 phases:   

0 Phase: Beacon Chain 

1 Phase: The Merge 

2 Phase: Sharding 

Ques 2. What is Sharding? 

Ans 2. Sharding is the procedure in which one Blockchain diverges into different Blockchains. Therefore, one network works as a particular validator. Instead of executing all transactions via a single Blockchain, it can be done across various side chains. It makes the process more energy-efficient.