What is Blockchain?
Blockchain is a decentralised digital ledger that stores data and records securely on a computer network. These blocks are linked together in a chronological chain, and each one contains transaction data, a timestamp and a cryptographic signature. These mechanisms guarantee immutability and security since, once recorded, the data in the blockchain cannot be changed without consensus throughout the network.
Consensus mechanisms
The blockchain relies on consensus mechanisms to validate and add new blocks to the chain. This is done through the validation of the network participants. There are a few variations, but the following are considered the main ones.
- Proof of work (PoW): Commonly used by Bitcoin and previously by Ethereum, it requires miners to solve complex mathematical problems to add blocks. It prioritises security but consumes a lot of energy.
- Proof of stake (PoS): Used by Ethereum after the upgrade to Ethereum 2.0 and by networks such as Solana, Cardano and Polkadot. Instead of mining, validators stake tokens to earn the right to validate blocks, making the process more energy-efficient.
How Blockchain development works
Nodes and networks
A node is a device that runs the blockchain’s protocol software and connects to its network. It acts as a moderator, helping to build and maintain the decentralised infrastructure. Depending on the type of node, its main function is to guarantee the consensus and integrity of the blockchain’s public registry.
Web3 APIs and testing environments
Web3 refers to the next generation of the internet, based on blockchain technology and managed collectively by its users.Â
In this context, testing Web3 applications becomes crucial to ensure that the different components and blockchains work seamlessly. Web3 testing ensures that different components and blockchains operate seamlessly, avoiding compatibility issues. By testing on multiple blockchains, you can validate your application’s interoperability and increase confidence in its cross-chain performance.
To build decentralised applications (DApps), developers use libraries like Web3.js and ethers.js. These libraries connect the front end to the blockchain and execute transactions. In addition, testnets such as Goerli and Sepolia offer test environments where you can experiment and validate smart contracts without the risk of spending real tokens.
Smart contracts and programming languages
Smart contracts are self-executing programs stored on the blockchain executed by computer programs or transaction protocols, used to automate the fulfilment of payment obligations, such as the transfer of cryptocurrencies or other tokens.
Two of the main blockchain programming languages are Solidity and Vyper:
- Solidity: This is the most commonly used programming language in the Ethereum Virtual Machine (EVM) and is widely adopted in several EVM-compatible blockchains.
- Vyper: This one is the second most popular programming language in Web3, after Solidity, for EVM-compatible blockchains. It is a contract-orientated language with Python-inspired syntax, strict typing, compact compiler code and efficient bytecode generation.
In addition to the main languages, essential frameworks support smart contract development and blockchain interaction. These frameworks provide tools for testing, deploying, and managing contracts. Two of the most popular are Hardhat and Truffle.
Security and common vulnerabilities
Although blockchain is a secure technology, its implementation requires rigorous care.
Poorly written smart contracts can be exploited and result in significant financial losses. Some of the most common vulnerabilities include reentrancy attacks, integer overflows and underflows, and frontrunning. To manage these risks, it’s important to adopt good security practices. This includes using blockchain security audits and conducting thorough tests.
There are several security auditing and analysis tools, such as MythX, Slither and OpenZeppelin, which help to identify and correct flaws before implementation. In addition, carrying out regular audits and ensuring that the code is robust and well-tested is essential for protecting blockchain applications.
Technical challenges and new opportunities
Blockchain is a technology that requires adaptation. Its growth has created new challenges and opportunities, particularly in scalability, interoperability, and the shift from Web2 to Web3.
Scalability is being addressed with solutions such as Layer 2 (Optimistic Rollups, ZK-Rollups) and new networks. Interoperability between blockchains is supported by protocols like Polkadot, Cosmos, and cross-chain bridges. Decentralised development is also constantly evolving, and blockchain is increasingly connected to Web3, changing the way applications and users interact online.
To become an expert in blockchain, it’s crucial to be up-to-date on the subject and to thoroughly understand both its opportunities and its risks.Â
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