Methods and computing nodes for managing blockchain resources

Methods and computing nodes for managing blockchain resources

Question

What is a centralized database? List one advantage and one disadvantage of a centralized database.

What is a blockchain? Describe a key difference between a blockchain and a centralized database.

What is the difference between a permissioned blockchain and a permissionless blockchain?

What is a smart contract? Describe a use case for smart contracts in a blockchain system.

Explain the concept of "consensus" in blockchain technology.

Describe the "immutability" property of blockchain. How does this affect data security?

What is one problem related to traditional URI-based resource references that this invention solves?

What is a blockchain-based URI (BURI)? List three pieces of information that can be included in a BURI.

What is the purpose of the blockchain notification board (BCNB) described in this article?

Explain how the "time" variable is used in a BURI to identify unique resources over time.

Answer

A centralized database stores all data in one location, usually on a central computer. The advantage is that it is easy to manage and maintain; the disadvantage is that there is a single point of failure, and if that point fails, all data will be lost.

A blockchain is a decentralized, distributed database in which data is stored in a network of multiple nodes. Unlike centralized databases, blockchains have no central point of control, which makes them harder to tamper with.

Permissioned blockchains restrict who can participate in the network and validate transactions, while permissionless blockchains, such as Bitcoin, allow anyone to join.

Smart contracts are pieces of code that execute automatically on a blockchain. For example, they can be used to automatically execute agreements when certain conditions are met, such as making payments when goods are delivered.

Consensus refers to the process by which all nodes in a blockchain network agree on the validity of a transaction. This is essential to ensure that the ledger on all nodes remains consistent and accurate.

Immutability means that once data is written to the blockchain, it cannot be changed. This ensures the integrity of the data and makes it a reliable way to store sensitive information.

One problem with traditional URIs is that they can become dangling references, meaning they point to non-existent data if the resource is moved or deleted.

A BURI is an identifier that identifies a specific resource on a blockchain. The information it can contain includes peer URIs, chaincode IDs, and timestamps.

BCNB acts as a bulletin board for storing blockchain resource information, such as peer node URIs, message information, etc. It can help improve the trust and reliability of blockchain networks.

The “time” variable in BURI allows it to point to the state of a resource at a specific point in time. This is important because data on a blockchain is updated over time, and BURI ensures that it always refers to the correct version of the data.

Essay Questions

Discuss the main advantages of blockchain over centralized databases and give examples of how blockchain technology can transform various industries.

Dive into the role of smart contracts in blockchain. Describe its different components, execution mechanisms, and their advantages in facilitating secure and automated transactions.

Analyze the differences between permissioned and permissionless blockchains. Compare and contrast their features, use cases, and trade-offs, and discuss which type is more suitable for specific scenarios.

Explain the importance of achieving and maintaining consensus in a blockchain system. Describe different consensus mechanisms, such as Proof of Work (PoW) and Proof of Stake (PoS), and analyze their advantages and disadvantages.

Explanate on the concept of Blockchain Notification Board (BCNB) and its role in enhancing trust and security in blockchain networks. Discuss its implementation, features, and potential advantages, and give examples of real-world use cases.

Glossary of Key Terms

Term Definitions Blockchain A decentralized, distributed database where data is stored across a network of multiple nodes. Block A data structure of a blockchain containing a set of transactions that are hashed and chained together. A smart contract is a piece of code that is automatically executed on the blockchain. Consensus A process by which all nodes in a blockchain network agree on the validity of a transaction. Immutability A property of data that cannot be changed once it is written to the blockchain. Uniform Resource Identifier (URI) A string of characters used to identify resources on the Internet. Blockchain-based URI (BURI) An identifier that identifies a specific resource on the blockchain, even if the network address, chaincode ID, chaincode version, etc., change. Blockchain Notification Board (BCNB) A notice board that stores blockchain resource information (e.g., peer node URI, message information, etc.). Chaincode Program code deployed on a computing network that is executed and verified together by chain validators during the consensus process. World State A data structure that represents the current state of the blockchain, including the results of all submitted transactions. Peer Node A node that maintains a copy of the blockchain and participates in the validation of transactions on the network. Orderer A node that collects transactions and sorts them into blocks that are added to the blockchain. Endorsement Policy Defines the rules for which nodes need to endorse a transaction before it can be submitted to the blockchain.