Blockchain and Crypto Advanced

What is Permissioned vs Permissionless Blockchain ?

Permissioned and permissionless blockchains are two different types of blockchain systems that have different characteristics and uses.

Permissioned blockchains, also known as private blockchains, are restricted to a specific group of participants and require permission to join. These blockchains are typically used for closed or semi-closed systems, where all participants are known and trusted, and where the focus is on maintaining privacy and confidentiality. Permissioned blockchains are often used in industries where data privacy and security are a high priority, such as in financial services, healthcare, and government.

Permissionless blockchains, also known as public blockchains, are open to anyone and do not require permission to join. These blockchains are typically used for open systems where anyone can participate, and where the focus is on transparency and decentralization. Permissionless blockchains are often used for decentralized applications (dApps) and decentralized finance (DeFi) platforms, where transparency and trust are important. Example – Bitcoin, Ethereum, Cardano, Polkadot and many more

Overall, permissioned blockchains are more suitable for closed or semi-closed systems where privacy and security are a high priority, while permissionless blockchains are more suitable for open systems where transparency and decentralization are important.

What is fork or bitcoin fork?

A bitcoin fork is a change to the bitcoin protocol that creates a new branch of the bitcoin blockchain. This can occur when there is a disagreement among the community of bitcoin users about how the protocol should be changed or improved. When a fork occurs, the bitcoin network splits into two separate networks, each with its own set of rules and protocols.

There are two main types of bitcoin forks: soft forks and hard forks. A soft fork is a backwards-compatible change to the bitcoin protocol that does not result in the creation of a new blockchain. A hard fork, on the other hand, is a change to the bitcoin protocol that is not backwards-compatible and results in the creation of a new blockchain.

Hard forks are typically more controversial and can lead to significant disruption in the bitcoin market. When a hard fork occurs, the new blockchain and the old blockchain may continue to operate independently of each other, leading to the creation of two separate cryptocurrencies. This can result in confusion and uncertainty among bitcoin users, as they may not know which version of the cryptocurrency to use or how to access their funds on the new blockchain.

Overall, bitcoin forks are a normal part of the bitcoin protocol and can occur for a variety of reasons. However, they can also lead to significant disruptions in the bitcoin market and may require careful consideration and planning by bitcoin users.

What is blockchain or Bitcoin Halving that everyone talks about?

Bitcoin halving is a process that occurs in the bitcoin blockchain to reduce the rate at which new coins are generated. It occurs every 210,000 blocks (about every four years) and reduces the block reward, which is the number of new bitcoins that are generated with each block, by half.

The purpose of halving is to ensure that the total supply of bitcoins is limited and predictable. The maximum supply of bitcoins is capped at 21 million, and halving helps to ensure that this cap is reached in a predictable manner.

When a halving event occurs, the block reward is reduced from a certain number of bitcoins to half that amount. For example, the first halving event occurred in 2012 and reduced the block reward from 50 bitcoins to 25 bitcoins. The second halving event occurred in 2016 and reduced the block reward from 25 bitcoins to 12.5 bitcoins. The third halving event occurred in 2020 and reduced the block reward from 12.5 bitcoins to 6.25 bitcoins.

Halving has a number of effects on the bitcoin market. For example, it can reduce the rate at which new bitcoins enter circulation, which can increase the value of existing bitcoins by reducing the supply. Halving can also have an impact on the mining industry, as the reduced block reward may make mining less profitable for some miners.

Overall, bitcoin halving is a key feature of the bitcoin protocol that helps to ensure a predictable and limited supply of bitcoins and can have significant effects on the bitcoin market.

How often does Bitcoin Halving happens ? Who gains from it ?

Halving was designed to be a key feature of the bitcoin protocol to ensure that the total supply of bitcoins is limited and predictable. The maximum supply of bitcoins is capped at 21 million, and halving helps to ensure that this cap is reached in a predictable manner.

When a halving event occurs, the block reward is reduced by half. The block reward is the number of new bitcoins that are generated with each block.

For example,

the first halving event occurred in 2012 and reduced the block reward from 50 bitcoins to 25 bitcoins. The second halving event occurred in 2016 and reduced the block reward from 25 bitcoins to 12.5 bitcoins. The third halving event occurred in 2020 and reduced the block reward from 12.5 bitcoins to 6.25 bitcoins.

Halving has a number of effects on the bitcoin market. For example, it can reduce the rate at which new bitcoins enter circulation, which can increase the value of existing bitcoins by reducing the supply. Halving can also have an impact on the mining industry, as the reduced block reward may make mining less profitable for some miners.

Overall, bitcoin halving is a key feature of the bitcoin protocol that helps to ensure a predictable and limited supply of bitcoins and can have significant effects on the bitcoin market.

Who gains from Bitcoin Halving ?

The impact of bitcoin halving on different parties can vary. Halving is a process that occurs in the bitcoin blockchain to reduce the rate at which new coins are generated and can have a number of effects on the bitcoin market.

One group that may benefit from bitcoin halving are holders of bitcoin. When a halving event occurs, the block reward is reduced by half, which can reduce the supply of new bitcoins entering the market. This can increase the value of existing bitcoins by reducing the supply, which can benefit holders of bitcoin.

Another group that may benefit from bitcoin halving are miners. Miners are individuals or organizations that contribute computing power to the bitcoin network to process transactions and create new blocks. When a halving event occurs, the block reward is reduced, which can make mining less profitable for some miners. However, those miners who are able to continue operating profitably may benefit from the increased value of existing bitcoins.

Overall, the impact of bitcoin halving on different parties can vary and depend on a number of factors, including the overall demand for bitcoin and the ability of miners to continue operating profitably.

Who does the halving ?

Halving occurs automatically when a certain number of blocks have been added to the bitcoin blockchain. Specifically, halving occurs every 210,000 blocks (about every four years). When a halving event occurs, the block reward is automatically reduced by half. The block reward is the number of new bitcoins that are generated with each block.

What is Segwit?

Segregated Witness (SegWit) is a technical improvement to the bitcoin blockchain that was implemented in August 2017. SegWit was designed to address a number of issues with the bitcoin network, including transaction malleability and block size limits.

Transaction malleability is a technical issue that allows the data within a bitcoin transaction to be modified before it is confirmed on the blockchain. This can cause problems when trying to verify the authenticity of a transaction.

Block size limits are a feature of the bitcoin blockchain that limit the maximum size of each block. This limits the number of transactions that can be processed on the network at any given time.

SegWit was designed to address these issues by separating the witness data (signature data) from the transaction data in each block. This allows more transactions to be processed in each block and also helps to prevent transaction malleability.

SegWit has been widely adopted by the bitcoin community and is supported by a number of bitcoin wallets and exchanges. It has helped to improve the scalability and security of the bitcoin network and is considered a key technical improvement.

What is zkrollup?

Zero-knowledge rollup (zkrollup) is a type of layer-2 scaling solution for blockchain networks. Layer-2 solutions are designed to help address the scalability issues of blockchain networks by moving some of the workload off the main blockchain and onto a separate layer.

Zkrollup is a specific type of layer-2 solution that uses zero-knowledge proofs to validate transactions without revealing any sensitive information about the transactions to the network. This allows zkrollup to process transactions in a more private and efficient manner than other layer-2 solutions.

Zkrollup can be used to scale a number of different types of blockchain networks, including networks that use smart contracts and those that support privacy-focused transactions. It is considered a promising solution for improving the scalability and privacy of blockchain networks.

What is Layer 1 and Layer 2 blockchain ?

In the context of blockchain technology, “layer 1” refers to the underlying base layer of a blockchain network. The base layer is responsible for maintaining the integrity of the network and ensuring that transactions are processed and recorded accurately. It is the foundation upon which other layers or applications are built. Ethereum and Cardano is a an example of Layer 1 blockchain.

“Layer 2” refers to any additional layer that is built on top of the base layer (layer 1) to provide additional functionality or to improve the scalability and efficiency of the network. Layer-2 solutions are designed to help address the scalability issues of blockchain networks by moving some of the workload off the main blockchain and onto a separate layer.

Examples of layer-2 solutions include sidechains, state channels, and zero-knowledge rollups (zkrollups). These solutions allow transactions to be processed off-chain, which can help to reduce the load on the base layer and improve the overall performance of the network. Matic/Polygin is a an example of Layer 2 blockchain.

Layer 1 and layer 2 solutions can work together to provide a more complete and robust blockchain ecosystem. Layer 1 solutions provide the underlying infrastructure for the network, while layer 2 solutions build on top of that infrastructure to provide additional features and functionality.

Where can I get to see all of crypto tokens ?

https://coinmarketcap.com/ is one of the known site where you can see a good number of tokens.