Blockchain Network and its Attributes

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Preamble

The crypto sector is actively developing, but its impact on the global economy has not yet been sufficiently studied. It is obvious that this area of activity is not immune from shocks and crises just like many others. Awareness of this objective reality should lead companies that implement various crypto (blockchain) projects into business to understand the following fact. Even in the presence of the most negative external circumstances, they have a chance not only to remain in the market, but also to develop successfully. To do this, you need to remember a few simple rules:

1) Manage your resources, striving for their optimal use and, at the same time, reducing losses.

2) Be in constant contact with your clients, regardless of the external situation.

3) Strive for maximum automation of those processes that are part of each implemented project and carry a large resource load.

Based on the above, it becomes clear that the main driver or brake of any large or small project is infrastructure. Analyzing the infrastructure, finding and eliminating its shortcomings, as well as optimizing both the processes themselves and the resources used may require specialists to have knowledge in the use of special technologies and tools. Such professionalism is precisely the hallmark of Dysnix specialists.

Blockchain network operation diagram

When we are talking about various blockchain projects, it makes sense to remember the very principle of blockchain operation. So, there is a certain blockchain network or, in other words, a certain distributed registry, which consists of many nodes. Each network node contains not only some facts, but also a history of changes in these facts. The term “facts” means a certain digital asset that is processed by participants in the blockchain network. Before investing in the network, this digital asset was somehow described and endowed with its attributes. In the subsequent process of working with a digital asset through various transactions, changes in its attributes will occur. It is transactions that change the attributes of a digital asset that will be the history of changes in facts. The transactions themselves can be initiated by any client of the blockchain network.

Before any transaction enters the chain block, a smart contract is launched, which reflects the rules for verifying the initiated change. A smart contract is a program code that, in addition to the rules for conducting transactions, also contains a consensus protocol acceptable for each specific blockchain network. A consensus protocol is designed to verify the results of transactions, which can be formed into a specific set of records. After confirming that consensus has been reached, nodes add the already verified block to the shared ledger. In this case, the block is protected using cryptographic tools and cannot be changed in the future. After joining a block to the chain, both its current state (in the state database) and the previous one (in the historical database) are saved.

Decentralized applications and smart contracts

As follows from the above, blockchain technology fully forms a decentralized environment. A situation in which a developer includes applications in this decentralized environment to implement targeted tasks is usual. For example, one application will generate transactions (frontend), and another application will verify transactions (smart contract). Such applications will be called decentralized (DApps), since in order to implement their tasks in a decentralized environment, applications do not require any central server; they will work independently on all network nodes. There is a standard definition of a decentralized application as a blockchain application that runs on a decentralized peer-2-peer network, and the smart contracts and data of this network are interconnected.

One of the features of a decentralized application is the absence of backend code, which is present in a regular web application. DApps use smart contracts instead of backend code. A smart contract, at its core, is a kind of agreement between participants in a blockchain network. It should be noted that if there is some kind of paper contract between network participants, a smart contract can either complement it or completely replace it. It should also be noted that smart contracts are executed automatically. From an applied point of view, a smart contract is a code developed in one of the standard programming languages, the purpose of which is to ensure the execution or verification of an agreement between network participants.

We can schematically describe a decentralized application for a clearer understanding of it. First of all, DApp includes a description of the blockchain network participants themselves, a description of their rights, as well as a description of what will fit into the network, what digital assets, how they will change, as well as transactions and events. In addition, the DApp also includes a description of the rights of participants to access network data, all program interfaces that are necessary for interaction between parts of the application. In conclusion, it should be noted that the front-end of a web application can work not only in the blockchain network, but also outside it.