Blockchain - A comprehensive Guide


Table of Contents: ‍

1. Blockchain

2. Private Blockchain vs. Public Blockchain

3. Proof-of-Stake vs. Proof-of-Work

4. French Blockchain Startups

5. CBDCs

6. Conclusion

PBWS created a comprehensive guide for you to get to know more about the Blockchain Technology. This new ecosystem will make a significant contribution to people's live, so we have compiled everything you need to know!

 

Blockchain

A blockchain is a method of storing and transmitting data without the use of a central authority. It is a distributed database in which data provided by users and internal links to the database are examined and aggregated into blocks at regular intervals, establishing a chain. 

Cryptography protects the entire system. A blockchain, by extension, is a distributed database that maintains a list of records that are secured from manipulation or change by storage nodes; it is therefore a distributed and secure register of all transactions carried out since the distributed system's inception.

Because both systems use computer protocols coupled to a decentralized infrastructure, there is a parallel with the Internet network. The Internet permits data packets to be sent from a "safe" server to remote clients (recipients must verify the data's integrity), and the blockchain allows "trust" to be built between agents who are not part of the system. 

The "trusted third party" in blockchain technology is the system itself: each distributed piece of the blockchain has the elements required to ensure the integrity of the data transferred (by a cryptographic algorithm).

Although blockchain technology is still in its early stages, a few applications have already been developed. Food traceability is one of the most common. Carrefour is one of the forerunners in this field, with its QR code applied to a variety of foods, allowing individuals to learn everything about the product's origin. 

Insurers are quite interested in the application of automatically triggering compensation. Smart contracts, which are stand-alone programs that execute automatically based on pre-defined circumstances, make this feasible. Finance has made significant development in the realm of blockchain, notably in "security tokens," or digitized and recorded financial instruments on the blockchain.

Private Blockchain vs. Public Blockchain

The degree of openness distinguishes the private blockchain from the public blockchain. Anyone can access and use the public blockchain. It allows anyone to send transactions to it and have them recorded in the ledger. The Bitcoin and Ethereum blockchains are examples of this. 

A private blockchain allows an entity to change the protocol at any time. No one can join in unless they have been given permission, but anyone can watch it. Private blockchains are frequently utilized by businesses to conduct internal experiments. They can also connect disparate information systems within the same organization that don't communicate well with one another. There's also the "permissioned" blockchain, which gives one entity complete control over the network.

Proof-of-Stake vs. Proof-of-Work

Proof of stake, sometimes known as PoS, is a mechanism for achieving distributed consensus on a cryptocurrency's blockchain.

While Proof of Work (PoW) requires users to run hash algorithms multiple times or solve math puzzles using algorithms to validate electronic transactions, Proof of Stake requires users to prove ownership of a certain amount of cryptocurrency (their "stake" in the cryptocurrency) in order to claim the ability to validate additional blocks in the blockchain while also receiving the reward, if one is available. 

These blocks have been added. Proof of Stake was used for the first time by Peercoin. For example, when the Ethereum cryptocurrency is fully operational, it will go from Proof of Work (PoW) to Proof of Stake (PoS).

French Blockchain Startups

Ledger 

Ledger is a firm that specializes in the creation of cryptocurrency infrastructure and security solutions and is best known for its crypto wallets.

The company's headquarters are in Paris, and it also has offices in France and San Francisco. With nearly 1 million goods sold in over 165 countries, the firm is presently the market leader. The firm has been extremely successful thus far, raising over $ 88 million in investment, making it one of France's largest companies. It currently has a significant crew, which is directed by Pascal Gauthier, the company's CEO. The firm uses a proprietary and distinguishing technology that sets it apart from the competition. The firm, which began in 2014 as a provider of physical security services, recognized an opportunity to expand into bitcoin protection. 

The business also unveiled a new product called "Vault," which is a fully managed software solution aimed at addressing the need for a cryptocurrency backup, since most blockchain protocols are frequently targeted by cyber-attacks and so require adequate protection. The firm is also known for its wallets, often known as crypto wallets, which anyone may use to hold bitcoin physically. This is distinct from other crypto trading platforms in that the coin is solely housed on the device of the device, providing greater anonymity. When opposed to trading platforms, ledgers offer a secure place to keep cryptocurrency. This company-developed solution is suitable for investors who want to keep their cash on hand.

Coinhouse 

Coinhouse, originally known as "the house of bitcoin," was one of the first cryptocurrency trading platforms to be established in France. The startup, which was founded in 2014, has already raised $3.4 million and wants to grow across Europe. The firm has been certified by the Autorité des Marchés Financiers, and it is one of the few businesses with this certification and authority from the French government to offer cryptocurrency shares. Although crypto enthusiasts are aware that there are several other firms in the blockchain field, such as Coinbase or even Binance, it is always advantageous to use a platform that is French, making it closer to French customers. Even though the French were wary of putting their money in an app at the time, the company's position and strategy remain centered on technology. 

Individuals are likely to gravitate more towards remote financial solutions in the near future, according to the company's creator, and will most likely invest through their mobile phones as well. In North America, where programs like eToro and Robinhood are popular, especially among the younger generations, such a tendency has been detected.

Stratumn 

Stratumn is a corporation that specializes in blockchain technology. Its goal is to assist small and large firms in streamlining their financial processes by utilizing the advantages of blockchain technology. The firm raised cash for the first time in 2016 and has raised around $ 9.7 million to far. Currently, the company concentrates on medium to big organizations, having several well-known French corporations as clients.

CBDCs

The fact that central bank digital currencies are not new is one option to explore. Finland attempted to apply this notion in their country in the 1990s. On the other hand, such an invention was not blockchain-based and did not prove to be effective, because the concept had not yet been completely developed and that most users preferred cash to digital currencies.

The CBDC method is quite simple and is based on blockchain technology developed internally by a central bank.A digital token or electronic record is used to represent the virtual form of a nation's fiat currency (or region). A CBDC is a centralized currency that is issued and regulated by the country's competent monetary authority.Countries that rely extensively on digital payments and transactions would be the greatest candidates to start the CBDC and learn from and share their experiences with such activities. China appears to be leading the charge in terms of CBDCs, but other similarly sophisticated countries may follow suit.

Digital currencies issued by central banks are now considerably more developed and ready to trade. While most people are unaware of what CBDCs are or what they stand for, people are becoming increasingly technologically savvy and may be interested in this government-sponsored alternative. It will be fascinating to see how far these implementations and stuff progress. It's also worth noting that central bank digital currencies should never be designed to compete with cryptocurrencies. Even though both assets are digital, they have many intangible differences, and their association isn't exact because they have so little in common.

To summarize, we can argue that central bank digital currencies will undoubtedly provide a benefit that should be considered. They will obviously never be able to replace or compete with cryptocurrencies, but they may be able to make a significant contribution to traditional financial systems and benefit blockchain technology in general.The development and innovation of blockchain technology are aggressively encouraged, and this may be a great opportunity to promote it. Furthermore, persons who are suspicious of cryptocurrencies would benefit from learning about digital currencies via central banks since they would receive exposure to digital currencies, which would persuade them to investigate the notion of cryptocurrencies. There is little doubt that a significant portion of the population, particularly in France, remains distrustful of cryptocurrencies. So every chance to show that cryptocurrency is a fantastic kind of innovation is welcome.

Presenting and showing the opportunities associated with blockchain technology in a government environment could perhaps assist individuals in realizing the technology's potential benefits. Better transparency, fewer scams, and lower bank fees are all compelling arguments for what blockchain may accomplish and how it might contribute to a better world.While it is widely assumed that central bank digital currencies will be beneficial to society, we must keep in mind that there will be numerous disadvantages to establishing such a system in the market. It is also worth noting that cryptocurrencies are the opposite of central bank digital currency. They will not allow governments to have more power and will thereby compensate for whatever anxieties that people may have. Finally, such advancements will take time and will not occur immediately. As a result, the populace will have some time to prepare, wait, and assess the available choices.

Conclusion

In conclusion, advantages listed by the blockchain technology are numerous, and applicable to all industries. The path towards a full democratization of the field is not here yet, but significant contributions from industry leaders will contribute to the perenniality and application of the field. Paris Blockchain Week Summit will continue to provide key insights about the industry for the benefit of corporations, public entities, and citizens. We look forward to bringing you new educational content on the advantages brought by blockchain technology.

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