Blockchain infrastructure refers to technical resources, such as servers, networks, and protocols, that support the operation of distributed ledger systems (DLT). It also includes the nodes that store, verify, and transmit transactions on the blockchain network. Blockchain infrastructure is crucial to ensuring secure, stable, and scalable network operations, enabling the storage of unalterable transaction records and the running of smart contracts.
Blockchain Infrastructure
Type of technology
Description of the technology
Basic elements
- Nodes: Computers that store and process blockchain data.
- Communication protocols: Rules for exchanging information between nodes.
- Consensus: Mechanisms to reach consensus on the state of the network (Proof of Work, Proof of Stake).
- Peer-to-peer (P2P) networks: Shared communication networks between nodes.
- Computing servers: High-performance servers that process transactions and run smart contracts.
Industry usage
- Finance: Payment systems and settlement of international transactions.
- Identity management: Digital identity management platforms.
- Logistics: Monitoring the supply chain and verifying the origin of products.
- Smart cities: Management of city data and infrastructure in a decentralised manner.
- Contract automation: Enabling smart contracts in commercial transactions.
Importance for the economy
Blockchain infrastructure provides the foundation for decentralised applications and platforms. It enables secure and transparent transactions, without the need for a trusted third party. It supports the development of new business models, such as smart contracts, decentralised finance (DeFi), and identity management systems. The development of blockchain infrastructure contributes to increased digital security and trust in online transactions.
Related technologies
Mechanism of action
- The blockchain infrastructure is based on a network of distributed nodes that store full or partial copies of the chain of blocks. Each node in the network participates in the validation and verification of transactions through the selected consensus mechanism. When a new transaction is submitted, the nodes verify its validity and add it to the block. This block is then sent to the entire network for synchronisation. Blockchain systems are typically designed to operate independently, without a central governing authority.
Advantages
- Cybersecurity: Protecting transactions from manipulation due to the distributed nature of the network.
- Scalability: Ability to expand the network with new nodes without sacrificing performance.
- Transparency: Each transaction is recorded and available for verification.
- Independence: Lack of central control over infrastructure operations.
- Immutability: Permanence of general ledger entries and no possibility of deleting or changing them.
Disadvantages
- High energy costs: Significant energy consumption with Proof-of-Work consensus.
- Technological complexity: Advanced technical knowledge requirements.
- Risk of attacks: Attacks around 51% can threaten network security.
- Regulatory problems: Different approaches to regulation in different countries.
- Limited scalability: Problems with processing multiple transactions in real time.
Implementation of the technology
Required resources
- Computing servers: High-performance servers for block storage and processing.
- Network infrastructure: Communication networks to support node operations.
- Consensus management systems: Mechanisms to verify transactions.
- Blockchain platforms: Infrastructure deployment and monitoring tools.
- Human resources: Blockchain technology experts and system engineers.
Required competences
- Systems management: Ability to manage decentralised IT systems.
- Blockchain programming: Knowledge of programming languages, such as Solidity and JavaScript.
- Cybersecurity: Protection against cyber threats and data manipulation.
- Data analysis: Data processing and analysis in decentralised environments.
- IT project management: Leading complex implementation projects in blockchain technology.
Environmental aspects
- Energy consumption: High energy demand of servers in Proof-of-Work networks.
- Emissions of pollutants: CO2 emissions from high energy consumption.
- Recycling: Difficulties in recycling decommissioned computing equipment.
- Raw material consumption: High demand for electronic components used to build nodes.
- Waste generated: Electronic waste from equipment upgrades.
Legal conditions
- Financial regulations: Regulations for the legality and use of cryptocurrencies in transactions.
- Data protection: Standards for the protection of personal data and confidentiality of transactions.
- Digital security: Regulations for securing digital infrastructure.
- Industry standards: Standards for building and operating blockchain infrastructure.
- Energy regulations: Limitations due to excessive power consumption by blockchain nodes.