BlockChain technology is an advanced dynamic tool that is already shaping the future of the Internet with simple and secure transactions.
Recently, the Dubai government has announced to adopt and launch blockchain technology by 2020, to create the future of Dubai and make Dubai happiest city on earth by implementing strategic patterns for paperless transactions. This will help Dubai to achieve the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum.
What is this BlockChain?
- BlockChain is an open Source software
- A Transaction database, decentralised, Distributed, permission less public ledger of all the transactions based on Bitcoin protocol.
- Blocks are batches of transactions in a chain.
- A sequential ledger of transactions.
- It records users Bitcoin holdings by storing every transaction from the start.
What is Bitcoin?
- Bitcoin is a protocol invented by Satoshi Yakomoto in 2008.
- It is a digital crypto currency.
What is bitcoin designed for?
A 2008 whitepaper written by the pseudonymous Satoshi Nakamoto introduced the concept of bitcoin, and the design principle behind bitcoin is:
“A purely peer-to-peer version of electronic cash [which] would allow online payments to be sent directly from one party to another without going through a financial institution.”
Why use Bitcoin?
- International currency whose ‘home ground’ is the internet, as opposed to any geographical location.
- Payments are relatively fast – the initial notification is within seconds, and it ‘settles’ in about an hour.
- Just like other currencies, bitcoin’s price fluctuates. Bitcoin’s price is more volatile than a lot of currencies.
- With time, conversion is getting easier and cheaper as more exchanges are springing up in more countries.
How Bitcoin and BlockChain works?
- “The Bitcoin Blockchain” file, sits on thousands of computers across the world, who participates in decentralised network.
- File contains data about all the bitcoin transaction
- Bitcoin File contains data about all the bitcoin transaction like ledger.
- The computers which store this file runs software that connects them over the internet to the other computers running the same.
- Once bitcoin payment is done, a payment instruction is sent to the network.
- The computers on the network validate the instruction and relay it to the other computers.
- Once validated, the payment gets included in one of the block updates and is added to The Bitcoin Blockchain file on all the computers across the network.
BlockChain works on p2p; what is Peer to Peer n/w?
- The distribution of data works on a peer-to-peer basis.
- Peer-to-peer is like a gossip network where everyone tells a few other people the news (about new transactions and new blocks.
- One benefit of peer-to-peer (p2p) over client-server is that with p2p, the network doesn’t rely on one central point of control which can fail.
What is Bitcoin Wallet?
- Bitcoin wallets are apps that allows to create Bitcoin addresses and display all the bitcoin addresses, display balances of user and make it easy to send and receive payments.
- The wallet will read the Bitcoin Blockchain file and calculate the balances in each address.
- Each bitcoin address has its own private key, which is needed to send payments from that address.
- Wallet software provides address/private key combination to user.
- A payment is an instruction to unlink some bitcoins from users address which he controls, and move them to the control of another address (recipient).
— Payments instruction contains: –
- which bitcoins you’re sending
- which address you’re sending them from
- which address you’re sending them to
Few best payment processors for Bitcoin
Building Bitcoin website using BlockChain API
- Block Chain API is entirely free to use and requires no registration. It will create a new unique address for each of your customers, and then monitor that address and alert you with a simple callback when payment is received.
- It is one of the Bitcoin client; base level of technology for conducting Bitcoin transactions, and store the keys needed to conduct a Bitcoin transaction.
- It is a web-based client with emphasis on speed, security, and ease of use.
- Create email account
- Go to blockchain.info website and create wallet
- In order to create wallet, user needs to provide email account and password for the wallet
- Wallet creation message will come inbox in the given email account.
- Access wallet by login and password, also enable API access.
- After login, user can see “ID” which is unique identifies by which user can create Bitcoin addresses.
- Once login into wallet, User can access transaction, receive payment, send payment.
- User can create wallet
- User can login to his wallet.
- Once login to his wallet, user can access transactions, send money and receive money.
- User can see Bitcoin addresses from where’re has received bitcoins.
- User accessing bitcoin address into websites by php code.
- User accessing balance at specific bitcoin address into websites by php code
Nutshell to integrate and use Bitcoin BlockChain
- Download software wallet app. (blockchain.info, mycelium etc.)
- Transfer Bitcoin via QR CODE OR Public key address.
- See your transaction confirm post to the blockchain.