The Blockchain

Jeremie l.

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The Blockchain

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Blockchain, blockchain system, database, cryptocurrency, NFT Non Fungible Token, technology, computer, money, digital objects, bitcoin, smart contract, copyright, collections, social medias, gas fees problem, economy, banking, cybersecurity, insurance industry, digital identity

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Abstract

First of all, the blockchain's system is the main thing to understand, everything that is going to be in this document is related and depends on the blockchain's system. So, a blockchain is a decentralized database which allows everybody to see the transaction history. Those transactions have the particularity to be unchangeable. Once it's done, no one can change it or remove it.
The fact they are untraceable is also very famous, but, in facts, it's not totally correct. When someone buys a crypto-currency, the transaction is verified and then registered in a block which is going to be connected to the other blocks to form the chain. The algorithm of the blockchain assigns a cryptographic hash to the block. The fact that the blocks have a hash and are time-stamped make the transactions unchangeable. Then, everybody can see the transaction. They can see the amount of the transaction, the sender's address and the receiver's address.

The blockchain
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[...] When someone buys a cryptocurrency, the transaction is verified and then registered in a block which is going to be connected to the other blocks to form the chain. The algorithm of the blockchain assigns a cryptographic hash to the block. The fact that the blocks have a hash and are time-stamped make the transactions unchangeable. Then, everybody can see the transaction. They can see the amount of the transaction, the sender's address, and the receiver's address. The address is the identity of someone in the blockchain. [...]

[...] Unlike cryptocurrencies, NFTs are not interchangeable. It means that you can't exchange one NFT with another one that has the same value. They mostly use the Ethereum's blockchain technology because, like Bitcoin's, it contains a cryptocurrency but also allows managing smart contracts. A smart contract is an automated computer program that guarantees a very precise set of execution conditions. It's like a traditional contract with the exception that he doesn't require an intermediary. In our case, with NFTs, the creator of the NFT sets very precise conditions that the potential future owner will have to respect. [...]

[...] Whitelist: There are a few disadvantages to purchasing an NFT. Good projects attract a lot of people so, as soon as the project is dropped, people are rushing to mint the NFTs. You must be very fast to get one. Then, there is the gas fees problem. Gas fees are the fees for miners who give their computer performances to validate transactions on blockchain. The more you're willing to pay gas fees, the faster your transaction will be confirmed. There aren't all these problems with whitelists. [...]

[...] The first one is the "Bored Ape Yacht Club" collection, released in April 2021. It contains bored Ape, which are monkey avatars. You have probably already seen one of them because they are everywhere on social medias. The floor price of the collection is of 90 Ethereums ( euros). There is also the "CryptoPunk" collection which is very famous and was released in June 2017. It's a 10 thousand NFTs collection created by Matt Hall and John Watkinson. They are pixel NFTs made in 24 X 24 pixels format in 8 bits. [...]

[...] It wouldn't be like that with blockchain's technology. With blockchain, our digital identity could simply be a cryptographic key that we stock in a hardware wallet like ledger. All our information could be stocked in the blockchain and used according to the conditions defined in the smart contracts. No more security problems and faster transactions. It would be profitable for everybody, when you buy a house, when a nurse needs medical information about you and even for the vote, we could vote from home just by identifying ourselves with our cryptographic key. [...]

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