What used to be known only as a cryptocurrency technology, blockchain, has now evolved into something much more than that. It now became a core component that supports a wide variety of industries aside from cryptocurrency. From banking to e-commerce, everyone is now working on innovating their platforms using blockchain applications. As it depicts layered landscape so that it can provide the required services and components of the business, here are some important architecture of a blockchain project you need to know.
Proof of Work (PoW)
PoW is a traditional algorithm and the first to be devised in cryptocurrency applications such as those for bitcoin and Ethereum. It is an algorithm that has a lot of computing power, therefore it doesn’t need the consensus based on the majority. Nodes with greater computing power can take up PoW. The first node to meet the necessary output gets to create a block and gets compensated for it. Typically, PoW comprises cryptographic hashing in achieving the desired outcome.
Proof of Stake (PoS)
The requirement for the high computing power of PoW may not be desirable at times. By providing an alternative approach, PoS overcomes this challenge. It’s called the stake of the user where the user who owns the highest digital assets can be the one who can create the block in the blockchain.
Security is one of the most important components in the blockchain architecture. Since anonymity and authentication are both required, credentials can come in the form of certificates and keys that can be used for signing and verification. The blockchain architecture should include efficient security measures such as authentication, confidentiality, integrity, access control, and nonrepudiation.
As users in a blockchain network work on anonymity, the consensus provides the trust component within the network. The transactions serve as a node that is verified within the network before it can be stored as a part of the block ledger. There are different algorithms of the consensus that convey how these blocks of transactions are created and validated, which enforces trust within the blockchain network.
An alias refers to a short and easy to remember name that is protected from being altered or hijacked in the blockchain storage. An alias registration is a special transaction that includes a record of an assignment. The core of the system then validates and checks the availability of the name. Once successfully verified, it then reaches the blockchain, and a new record will show in the alias database.
All these and more are what construct the architecture of the blockchain projects, including Virie Market. A new fast-rising decentralized virtual marketplace that runs through a blockchain network. No one can shut down or block this market as there are no governments or banks that control it. It’s a peer-to-peer network system where users conduct trusted transactions using private keys and multisignatures. It’s made even better with the most user-friendly interface in the market today. Its source code is open to all. Download it now and see for yourself.