Published on Feb 21, 2020
Blockchain’s unique distributed ledger technology is what makes the Neblio Network possible. This decentralized system of securely storing transactions is the future of database technology for global networks. Enterprise applications taking advantage of this technology gain numerous benefits over those using traditional database architectures including transaction immutability, transparency, security, reliability, and decentralization.
Despite the maturity of blockchain networks, few applications have taken advantage of the technology due to the difficulty, and cost of integration and maintenance. Unlike legacy blockchain networks, next-generation blockchain networks such as Neblio will fill the huge gap in the enterprise market to simplify the development and deployment of distributed applications that drive business value through blockchain technology.
A blockchain network such as Neblio is a decentralized peer-to-peer network of nodes that exchange information in the form of transactions; storing those transactions in an immutable distributed ledger. All nodes have a full copy of the ledger (known as the blockchain, due to being made of individual blocks) at all times. A node that would like to record information in the ledger first broadcasts a transaction containing the information to the network where it is relayed to all other nodes. One node then compiles all new available transactions on the network into a block that is added to the blockchain.
Once a block is stored on the blockchain, it and all of the transactions contained within it are immutable, meaning that the transactions cannot ever be altered in any way. When information on the ledger needs to be updated, as common with database systems, a new transaction is simply added to the ledger with the new information. However, the original information that was stored in the ledger remains intact and verifiable in a previous block for the entire life of the blockchain. Building on top of this blockchain technology originally created by the pseudonymous Satoshi Nakamoto for Bitcoin, the Neblio Blockchain provides distinct advantages for business and enterprise use cases for which bitcoin was not intended.
Tokens on a blockchain network incentivize network users to secure and operate the network. In a public blockchain network, bad actors can attempt to attack or disrupt the network for their own gain. In an effort to secure the network against such attacks, the network must have a method of finding consensus. Traditional networks such as Bitcoin use an energy and computation-heavy method of finding consensus known as proof-of-work.
Users are rewarded with bitcoins for using their computational power to verify new blocks for the block chain and consensus is found when the majority of the computational power on the network agrees, preventing attacks. In contrast, many newer blockchain networks, along with Neblio use a proof-of-stake consensus model. Proof-of-stake works by using the network users’ tokens as votes towards consensus to verify new blocks and secure the network. Users with more tokens get more votes since they have more tokens to lose if an attack on the network is successful. In order to incentivize users to stake their tokens in this model, users are given a reward for staking their tokens and verifying new blocks.
