<p><span style="background-color:transparent;color:#000000;">Cross-Origin Resource Sharing (CORS), Error Disclosure, Information Leak, Insecure Cookies, Path Traversal, Rate Limiting are 6 API security vulnerabilities.</span></p>

6 Common API Vulnerabilities and Strategies to Prevent Them

Security Vulnerabilities and How to Secure API Servers

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6 API Security Vulnerabilities and How to Secure API Servers?

<p>Imagine a digital world where every transaction leaves an undeniable mark of authenticity. This is the power of cryptographic signatures. We'll explore how these signatures work, from the public and private keys to the robust signing and verification process that built up blockchain security. Understanding these is crucial for evaluating the security and reliability of blockchain projects.</p>
<p>&gt;&gt;&nbsp;<em>Read more: </em><em><a href="https://reliasoftware.com/blog/how-does-blockchain-work">How Does Blockchain Work</a>? Hash, Blocks, Mining</em></p>
<h2>What are Public and Private Keys in Crypto?</h2>
<p>In the blockchain ecosystem, public and private keys are fundamental cryptographic tools that underpin the security and functionality of the entire system. Besides their definitions, I'll also explain how do public and private keys work in transaction verification here.</p>
<h3>Public Key</h3>
<p>We can analog the public keys to bank account numbers. These numbers are publicly shared strings of characters that act as unique identifiers for our accounts. They address us on the bank system. Then, obviously, anyone can send money to us, or we can deposit money into our banks using their numbers.</p>
<p>Similarly, public keys point to our wallets on the blockchain, also known as addresses. <strong>An account address is a part of or derived/generated from an account's public key. </strong>So, anyone can do transactions with us such as send crypto or fund a smart contract to our public keys.</p>
<p>Another use of public keys is that they can verify our assets on blockchain. Our data is always associated with our public keys. This <a href="https://reliasoftware.com/blog/create-an-ethereum-transaction">makes the blockchain transaction</a> verification on blockchain very easy to complete, ensuring the data integrity while allowing data transparency.</p>
<p>Public keys are generated from the private keys through a complex mathematical process. This ensures a secure and one-way relationship. So that we can see how important a private key is and why we must keep it a secret.</p>
<h3>Private Key</h3>
<p>Term of private key can be analogous to a bank account password - a secret string of characters that only you should possess. Similarly, once we have private keys, we can own our assets on blockchain.</p>
<p>Private keys are used for sending funds and signing transactions. To authorize a cryptocurrency transaction, we must use our private keys to sign it, proving ownership of the funds.</p>
<p>Therefore, this key is crucial for security. Losing your private key is equivalent to losing access to your cryptocurrency funds, as no one else can sign transactions on your behalf.</p>
<p>In essence, public and private keys work in tandem to provide a secure and decentralized framework for cryptocurrency transactions. They enable users to control their funds and participate in the blockchain ecosystem with confidence.</p>
<figure class="image align-center"><img src="https://api.reliasoftware.com/uploads/public_and_private_keys_5e0c56ebb9.webp" alt="Blockchain Transaction Verification" width="700" height="420">
<figcaption>Public and Private Keys</figcaption>
</figure>
<h2>Signatures</h2>
<p>We have known that a blockchain account uses a private key to sign data, then others can use the corresponding public key to understand that data and verify its ownership. Now we will go deeper to understand how a public and private key pair work together and benefit from this implementation in terms of the blockchain system.</p>
<h3>Sign a Transaction</h3>
<ul>
<li><strong>Transaction Creation: </strong>The sender initiates a transaction by creating a digital message containing details like the recipient's public key, the amount to be transferred, and any associated data.</li>
<li><strong>Digital Signature: </strong>The sender uses their private key to encrypt the transaction message. This creates a unique digital signature. Think of it as a fingerprint of the transaction, tied specifically to the sender's private key.</li>
</ul>
<h3>Verify a Transaction</h3>
<ul>
<li><strong>Broadcast: </strong>The signed transaction is broadcast to the network of nodes (computers) maintaining the blockchain.&nbsp;&nbsp;</li>
<li><strong>Signature Verification: </strong>Each node on the network attempts to verify the digital signature using the sender's public key. If the signature is valid, it confirms that the transaction originated from the legitimate owner of the private key.</li>
<li><strong>Consensus Mechanism: </strong>The network employs a consensus mechanism (like Proof-of-Work or Proof-of-Stake) to validate the transaction and ensure its authenticity. This process involves a majority of nodes agreeing on the transaction's validity before it's added to the blockchain.&nbsp;&nbsp;</li>
<li><strong>Block Addition:</strong> Once verified, the transaction is added to a new block in the blockchain, along with other verified transactions. This creates a permanent and immutable record of the transaction.</li>
</ul>
<figure class="image align-center"><img src="https://api.reliasoftware.com/uploads/signing_and_verifying_a_transaction_9c6ba03865.webp" alt="Signing and Verifying a Transaction" width="700" height="420">
<figcaption>Signing and Verifying a Transaction</figcaption>
</figure>
<h2>Benefit of Using Private and Public Keys</h2>
<p>We have gone through the public-private key pair, understand how it works and the purpose of that implementation. So now, let&rsquo;s see this cryptographic innovation offers which key advantages:</p>
<ul>
<li><strong>Secure Transactions</strong>: By requiring the private key for transaction authorization, only the rightful owner can spend funds.</li>
<li><strong>Decentralized Trust:</strong> The public-private key pair eliminates the need for intermediaries like banks. Users can directly transact with each other, fostering peer-to-peer interactions and building trust within the decentralized ecosystem.</li>
<li><strong>Enhanced Privacy: </strong>While public keys are shared, private keys remain secret, offering users a degree of pseudonymity. This allows for controlled disclosure of information, empowering individuals to manage their privacy within the blockchain environment.</li>
<li><strong>Enabling Innovation:</strong> The secure and verifiable nature of transactions facilitated by public-private key pairs enables the creation of smart contracts and decentralized applications (dApps).</li>
</ul>
<p><em>&gt;&gt;&nbsp;Explore more: <a href="https://reliasoftware.com/blog/advantages-and-disadvantages-of-blockchain">Advantages and Disadvantages of Blockchain Technology</a></em></p>
<h2>Summary</h2>
<p>We explored the fundamental concepts of signing and verifying transactions in the realm of <a href="https://reliasoftware.com/blog/what-is-blockchain-technology">blockchain technology</a>. In conclusion, they offer numerous advantages, including enhanced security through authentication, data integrity, and non-repudiation.</p>
<p>These features foster trust and transparency by eliminating intermediaries and creating an immutable record of all transactions. Moreover, automation of verification processes reduces costs and enables the development of innovative applications like smart contracts and decentralized applications (dApps).</p>
<p style="text-align: right;"><em>&gt;&gt;&gt; Follow and Contact&nbsp;<a href="https://reliasoftware.com/">Relia Software</a>&nbsp;for more information!</em></p>

<p class="" data-start="61" data-end="228">Public and private keys are cryptographic pairs in blockchain security. The public key is shared openly, while the private key secures and authorizes transactions.</p>

How to Use Public and Private Keys for Transaction Verification? | Relia Software

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How to Use Public and Private Keys for Transaction Verification?

<p>Git is a powerful version control system, but like any powerful tool, it's easy to make mistakes. Whether we've committed the wrong files, introduced a bug, the feeling of "Oh no, what have I done?" is familiar to many developers.&nbsp;Fortunately, Git provides a robust set of tools and commands to help us undo those mistakes, allowing you to rewind, revise, and recover your work.</p>
<p>This guide will explore common Git incidents and demonstrate the techniques we can use to effectively undo them, from simple file modifications to more complex history rewrites, so we can confidently keep our project on track.</p>
<p><em>&gt;&gt; Explore more:</em></p>
<ul>
<li style="font-style: italic;"><em>Top 10 <a href="https://reliasoftware.com/blog/automated-code-review-tools">Automated Code Review Tools</a> For Developers</em></li>
<li style="font-style: italic;"><em><a href="https://reliasoftware.com/blog/gitlab-vs-github">GitLab vs. GitHub</a>: Which One Is Right For You?</em></li>
<li style="font-style: italic;"><em><a href="https://reliasoftware.com/blog/what-is-devops">What is DevOps</a>? Principles and Practices Explained</em></li>
</ul>
<h2>Command: git restore</h2>
<h3><strong>Discard all local changes in a file</strong></h3>
<p>Sometimes, we write some lines of code in a local file, haven&rsquo;t committed them, and then realize they are not the best work. We want to undo them and get back to the last commit. In this case, we can use:</p>
<pre class="language-markup"><code>git restore &lt;filename&gt;
</code></pre>
<p>Notice:</p>
<ul>
<li>Discard uncommitted local changes cannot be undone!</li>
<li>In the case we accidentally delete a file, we can also use this way to restore.</li>
</ul>
<h3>Restore a chunk in a file</h3>
<p>In equivalent with the case above, but now we just want to discard chunks or lines of code in a file.&nbsp;We can use the command with an additional option &ldquo;-p&rdquo; followed by the filename of the selected file.</p>
<pre class="language-markup"><code>git restore -p &lt;filename&gt;
</code></pre>
<p>Git will sequentially go through each chunk (or hunk) in the file, we just need to choose the one we want to discard and type &ldquo;y&rdquo; indicating &ldquo;Yes&rdquo; to approve.</p>
<p><strong>For example</strong>, <code>text_A.txt</code> was changed like this:</p>
<p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://api.reliasoftware.com/uploads/text_atxt_was_changed_2a351246ee.webp" alt="text_A.txt was changed" width="932" height="190"></p>
<p>Enter this command &ldquo;<code>git restore -p text_A.txt</code>&rdquo;. The following question will be shown.</p>
<p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://api.reliasoftware.com/uploads/enter_the_command_git_restore_p_text_atxt_d544fb0f29.webp" alt="Enter this command &ldquo;git restore -p text_A.txt&rdquo;" width="699" height="428"></p>
<p>It is asking us for approval of discarding that hunk. OK, type &ldquo;y&rdquo; and enter. Now, the hunk is back.</p>
<p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://api.reliasoftware.com/uploads/the_hunk_is_back_c80d01e790.webp" alt="the hunk is back" width="937" height="211"></p>
<h3 dir="ltr" role="presentation">Reset the file to its old version</h3>
<p dir="ltr">Sometimes, we need to restore a file from commits&rsquo; changes to a specific version. We can run this command:</p>
<pre class="language-markup"><code>git restore --source &lt;git_commit_hash&gt; &lt;filename&gt;
</code></pre>
<p dir="ltr"><strong>For instance</strong>, we have a commit that changed 2 files</p>
<p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://api.reliasoftware.com/uploads/a_commit_that_changed_2_files_ddb5dbeb8c.webp" alt="a commit that changed 2 files" width="824" height="276"></p>
<p dir="ltr">But the change at <code>text_A.txt</code> is wrong, so we need to reset it while still keeping the change at <code>html_B.html</code>. Let&rsquo;s type:</p>
<pre class="language-markup"><code>git restore --source de06f6a0f03b7611507bab3f2b8a0ce7e65e56f9 text_A.txt</code></pre>
<p><code>de06f6a0f03b7611507bab3f2b8a0ce7e65e56f9</code> is the commit hash of an old version that we need the file to rollback to.</p>
<p>The result is that code in <code>text_A.txt</code> is automatically changed to its old version.</p>
<p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://api.reliasoftware.com/uploads/code_in_text_atxt_is_automatically_changed_to_its_old_version_c9fe700285.webp" alt="code in text_A.txt is automatically changed to its old version" width="936" height="191"></p>
<p>Notice:</p>
<ul>
<li>This change is still unstaged.</li>
<li>Git history is not rewritten.</li>
</ul>
<h2>Command: git commit &ndash;amend</h2>
<p>If we commit our change too soon and want to make some changes in the latest commit, the option &ldquo;--amend&rdquo; can help.</p>
<p><strong>For example</strong>, we have the latest commit that creates the file <code>html_B.html</code>.</p>
<p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://api.reliasoftware.com/uploads/the_latest_commit_that_creates_the_file_html_b_dd6c4f2cc7.webp" alt="the latest commit that creates the file html_B.html" width="950" height="365"></p>
<p>But the title tag is wrong, so we want to fix that quickly just in the existing commit.</p>
<p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://api.reliasoftware.com/uploads/the_title_tag_is_wrong_01427c31e4.webp" alt="the title tag is wrong" width="935" height="263"></p>
<p>So, commit the new change with the &ldquo;--amend&rdquo; option.</p>
<p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://api.reliasoftware.com/uploads/commit_the_new_change_with_the_amend_option_19570e68df.webp" alt="commit the new change with the &ldquo;--amend&rdquo; option" width="933" height="481"></p>
<p>Cool, the new change was combined with the latest commit.</p>
<p>Notice:</p>
<ul>
<li>We can also edit the commit message by using the &ldquo;-m&rdquo; option in &ldquo;git commit --amend&rdquo;.</li>
<li>&ldquo;--amend&rdquo; actually rewrite the git history, so we should not do it this way if we pushed the commit to our shared remote repository. Many conflicts will occur and make other team members confused.</li>
</ul>
<h2><strong>Command: git revert</strong></h2>
<p>If we want to remove a commit in the middle of git history, we should use this:</p>
<pre class="language-markup"><code>git revert &lt;git_commit_hash&gt;
</code></pre>
<p>Basically, this creates a new commit that removes all changes of the commit corresponding with the provided commit hash.</p>
<p>Notice:</p>
<ul>
<li>Of course, &ldquo;git revert&rdquo; can cause conflict, so we have to resolve all available conflicts to make reverting done.</li>
<li>This approach does not rewrite<strong> </strong>git history, so it&rsquo;s safe to share the revert commit to remote repositories.</li>
</ul>
<h2>Command: git reset</h2>
<h3>Reset to an old commit</h3>
<p>When we see that all the latest commits are unnecessary, we can delete all those commits to get the project back to a specific commit. This is the case when &ldquo;git reset --hard&rdquo; comes to the play.</p>
<pre class="language-markup"><code>git reset --hard &lt;git_commit_hash&gt;</code></pre>
<p>We have all the commits here.</p>
<p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://api.reliasoftware.com/uploads/all_the_commits_16b6f37df0.webp" alt=" all the commits" width="702" height="399"></p>
<p>The latest one should be removed. So enter the command:</p>
<pre class="language-markup"><code>git reset --hard de06f6a0f03b7611507bab3f2b8a0ce7e65e56f9</code></pre>
<p>Nice, now that commit is gone.</p>
<p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://api.reliasoftware.com/uploads/that_commit_is_gone_39843e5309.webp" alt="that commit is gone" width="880" height="316"></p>
<h3>Recover deleted commits</h3>
<p>As mentioned above, we can reset to any commit with &ldquo;git reset&rdquo;. But imagine that we accidentally do that command, our git history is now no longer keeping the deleted commits, and all the changes are gone away. Don't panic! We can fix this easily to bring all the commits back.</p>
<p>For example, we have this git history.</p>
<p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://api.reliasoftware.com/uploads/git_history_e49294f424.webp" alt="git history" width="569" height="490"></p>
<p>Now, try to reset to &ldquo;Create a HTML file&rdquo; by</p>
<pre class="language-markup"><code>git reset --hard de06f6a0f03b7611507bab3f2b8a0ce7e65e56f9</code></pre>
<p>New git history is:</p>
<p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://api.reliasoftware.com/uploads/new_git_history_fa7573c207.webp" alt="New git history" width="650" height="260"></p>
<p>Until now, we have a tool to see everything has changed within our git repository. That is &ldquo;reflog&rdquo;. Let&rsquo;s run:</p>
<pre class="language-markup"><code>git reflog</code></pre>
<p>Here is the result:</p>
<p><img src="https://api.reliasoftware.com/uploads/here_is_the_result_of_git_reflog_90f80f5e75.webp" alt="Here is the result of git reflog" width="891" height="72"></p>
<p>We can see all git activities. Just notice that the latest commit before we do &ldquo;<code>git reset</code>&rdquo; is &ldquo;<code>Restore A</code>&rdquo;. Copy the hash &ldquo;<code>9a35adf</code>&rdquo; that lies right before &ldquo;<code>de06f6a</code>&rdquo; (the result of our incident &ldquo;<code>reset</code>&rdquo;).</p>
<p>Run the command:</p>
<pre class="language-markup"><code>git reset --hard 9a35adf</code></pre>
<p>The git history should be recovered successfully, all code changes are also back. Very interesting!</p>
<h2>Command: git rebase</h2>
<p>We need to keep in mind these steps when work with &ldquo;rebase&rdquo;:</p>
<ul>
<li>How far back do you want to go? What should be the &ldquo;base&rdquo; commit?</li>
<li>Do rebase. An example: <code>git rebase -i HEAD~3</code></li>
<li>In the editor, only determine which actions you want to perform. Don&rsquo;t change commit data in this step.</li>
</ul>
<h3>Edit old commit message</h3>
<p>We have this git history.</p>
<p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://api.reliasoftware.com/uploads/git_history_e49294f424.webp" alt="git history" width="569" height="490"></p>
<p>Now, we will try to edit the commit message &ldquo;change both A and B&rdquo; to &ldquo;update text file A and html file B&rdquo;.</p>
<p>First, we will select commits for rebasing session by the command:</p>
<pre class="language-markup"><code>git rebase -i HEAD~3</code></pre>
<p>The editor will show the 3 latest commits and we can interact with them.</p>
<p>HEAD~3: The 3rd latest commit is going to the base.</p>
<p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://api.reliasoftware.com/uploads/3_latest_commits_3b83d87118.webp" alt="3 latest commits" width="916" height="163"></p>
<p>Change the action of the commit we are going to change its message to &ldquo;<code>reword</code>&rdquo;. Save change and close the editor.</p>
<p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://api.reliasoftware.com/uploads/change_its_message_to_reword_80ba48df9d.webp" alt="change its message to &ldquo;reword" width="920" height="163"></p>
<p>Now, a new editor will appear to allow us to edit the commit message.</p>
<p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://api.reliasoftware.com/uploads/a_new_editor_allows_to_edit_the_commit_message_843c434523.webp" alt="a new editor will appear to allow us to edit the commit message" width="878" height="496"></p>
<p>Edit it, then save change and close. The change will be approved and we should get our target successfully.</p>
<p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://api.reliasoftware.com/uploads/the_change_will_be_approved_fbb2df28f0.webp" alt="The change will be approved" width="564" height="494"></p>
<h3>Delete commits</h3>
<p dir="ltr">By the same way, but with the action &ldquo;<code>drop</code>&rdquo; we can remove commits.</p>
<p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://api.reliasoftware.com/uploads/the_action_drop_can_remove_commits_0975e3854b.webp" alt="the action &ldquo;drop&rdquo; can remove commits" width="917" height="167"></p>
<p>The result after saving the action change is</p>
<p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://api.reliasoftware.com/uploads/the_result_after_saving_the_action_change_ee7e700cc2.webp" alt="The result after saving the action change" width="594" height="384"></p>
<h3>Squash multiple commits into one</h3>
<p>Still in the same way, now, with the action &ldquo;<code>squash</code>&rdquo;, we can combine the commit we applied &ldquo;<code>squash</code>&rdquo; with its prior commit.</p>
<p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://api.reliasoftware.com/uploads/the_action_squash_c2a356fa79.webp" alt="the action &ldquo;squash" width="915" height="161"></p>
<p>Save the change and close the editor. We will go to another editor to edit the message for the combination commit.</p>
<p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://api.reliasoftware.com/uploads/edit_the_message_for_the_combination_commit_c9e93faf49.webp" alt="edit the message for the combination commit" width="553" height="273"></p>
<p>We can write anything and save to complete rebasing &ldquo;squash&rdquo;. The result now is:</p>
<p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://api.reliasoftware.com/uploads/complete_rebasing_squash_005eb00220.webp" alt="complete rebasing &ldquo;squash&rdquo;" width="582" height="417"></p>
<h3>Add changes to an old commit</h3>
<p>We already learned about &ldquo;git commit --amend&rdquo; that can fix the latest commit. But now, we are going to repair a commit in the middle of git history. Let&rsquo;s see how we can deal with that.</p>
<p>For example, we have a HTML file that was committed before, but now we see that it is wrong with &ldquo;Hello World&rdquo; in the div tag (commit de06f6a), and should be replaced with the h1 tag.</p>
<p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://api.reliasoftware.com/uploads/a_html_file_that_was_committed_before_6295d65ecf.webp" alt="a HTML file that was committed before" width="986" height="210"></p>
<p>Firstly, we need to commit the new change (replacing with h1) but of course not by the normal &ldquo;git commit&rdquo;. We will use:</p>
<pre class="language-markup"><code>git commit --fixup de06f6a</code></pre>
<p><code>de06f6a</code>: the commit we are going to fix by committing the new change.</p>
<p>A new commit is created with the new change.</p>
<p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://api.reliasoftware.com/uploads/a_new_commit_is_created_with_the_new_change_4db1b31bbf.webp" alt="A new commit is created with the new change." width="626" height="124"></p>
<p>Secondly, rebasing with the base must include the fixed commit de06f6a and the option &ldquo;--autosquash&rdquo;.&nbsp;</p>
<pre class="language-markup"><code>git rebase -i HEAD~3 --autosquash</code></pre>
<p>The editor now will be shown.</p>
<p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://api.reliasoftware.com/uploads/the_editor_now_will_be_shown_2e099cbbd2.webp" alt="The editor now will be shown" width="914" height="164"></p>
<p>With the &ldquo;--autosquash&rdquo; option, we don&rsquo;t need to do anything. Git helped us mark the action &ldquo;fixup&rdquo; for our fix-up commit and also sort it right after the fixed commit &ldquo;create a HTML file&rdquo;. Great! We just need to close the editor to make rebasing complete.</p>
<p>The result now is this. The div tag was replaced by the h1 tag and still keeps the commit without changing its message and position.</p>
<p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://api.reliasoftware.com/uploads/the_div_tag_was_replaced_by_the_h1_tag_764e9c5850.webp" alt="The div tag was replaced by the h1 tag" width="919" height="394"></p>
<p>Nice! We already fixed up a commit that can be anywhere in git history.</p>
<h2>Conclusion</h2>
<p>Making mistakes is a part of <a href="https://reliasoftware.com/blog/software-development-life-cycle-sdlc">the development process</a>, and thankfully, Git offers a robust set of tools to address them. Remember that understanding the implications of each command, especially those that rewrite history, is crucial.</p>
<p>Using <code>reflog</code> when experimenting with history-altering commands is highly recommended. By mastering these techniques, we'll be well-equipped to handle any Git-related mishap, ensuring a smooth and productive development workflow.</p>
<p>The key takeaway is that Git offers a path to recovery for almost any situation. The more you practice and understand these commands, the more confident and efficient you'll become in <a href="https://reliasoftware.com/blog/software-project-management-tools">managing your projects</a>.</p>
<p style="text-align: right;"><em>&gt;&gt;&gt; Follow and Contact&nbsp;<a href="https://reliasoftware.com/">Relia Software</a> for more information!</em></p>

<p>Commands for Git undo commit are git restore, git commit &ndash;amend, git revert, git reset, and git rebase. Learn how to undo local commit, last commit, rewrite history,...</p>

How to Undo a Commit in Git? Code Examples Included | Relia Software

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Git Undo Commit: How to Undo a Commit in Git with Code Sample?

<p>10 best VSCode extensions we cover are: GitLens, LiveShare, Pieces, Github Copilot, Code Runner, Turbo Console Log, Import Cost, Prettier, ESLint, and Docker.</p>

10 Best VSCode Extensions to Improve Developer's Productivity

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Top 10 Best VSCode Extensions to Improve Developer's Productivity

<p class="" data-start="272" data-end="605">Now that we've gained a high-level understanding of blockchain and smart contracts and learned <a href="https://reliasoftware.com/blog/advantages-and-disadvantages-of-blockchain">why blockchain is so advantageous</a>. Now let&rsquo;s take the next step: creating an Ethereum wallet and making our first transaction on a live blockchain. This hands-on approach will help you understand key activities and <a href="https://reliasoftware.com/blog/what-is-blockchain-technology">concepts in blockchain technology</a>&nbsp;in real world.</p>
<p dir="ltr">Don&rsquo;t worry about other blockchains, because most of them implement the equivalent concepts as Ethereum. Well, we&rsquo;re going to:</p>
<ol>
<li data-start="736" data-end="767">Create an Ethereum transaction.</li>
<li data-start="771" data-end="802">Examine what actually happened.</li>
<li data-start="806" data-end="852">Understand the technical mechanisms behind it.</li>
</ol>
<p>&gt;&gt;&nbsp;<em>Explore more: </em><em><a href="https://reliasoftware.com/blog/how-does-blockchain-work">How Does Blockchain Work</a>? Hash, Blocks, Mining</em></p>
<h2 data-start="538" data-end="573"><strong id="docs-internal-guid-f9158cae-7fff-7b7b-d428-56a67d6d79c6">MetaMask Crypto Wallet</strong></h2>
<p dir="ltr">So in order for us to interact with blockchain, the first thing that we're going to need is an Ethereum wallet like MetaMask, one of the most popular wallets and one of the easiest to use. Let&rsquo;s download MetaMask for our corresponding browser.</p>
<figure class="image align-center"><img src="https://api.reliasoftware.com/uploads/metamask_installed_successfully_on_ms_edge_7514741852.webp" alt="MetaMask installed successfully on MS Edge" width="771" height="376">
<figcaption>
<p dir="ltr">MetaMask installed successfully on MS Edge</p>
<strong id="docs-internal-guid-cf8b8605-7fff-bc28-2a21-3f8b4ac611f2"></strong></figcaption>
</figure>
<p dir="ltr">Now, because we're new here, we're going to create a new wallet. Then, MetaMask will force us to create our passwords and secret recovery phrases (a.k.a. mnemonic phrases) to secure our wallets. We absolutely must keep these phrases secure in the case you want to interact with the real Ethereum network.</p>
<p dir="ltr">Some tips for password protection:</p>
<ul>
<li dir="ltr" role="presentation">Save a backup in multiple private places such as a piece of paper or a password manager like 1Password or encrypted storages.</li>
<li dir="ltr" role="presentation">Never share the phrases with anyone.</li>
<li dir="ltr" role="presentation">Be careful of phishing. MetaMask should not ask for providing passwords or secret phrases.</li>
</ul>
<p dir="ltr">After we completed everything, we created our MetaMask wallets successfully. Now we can see the user interface of this wallet.</p>
<figure class="image"><img src="https://api.reliasoftware.com/uploads/home_ui_of_metamask_3e451fcde8.webp" alt="Home UI of MetaMask" width="780" height="380">
<figcaption>
<p dir="ltr">Home UI of MetaMask</p>
<strong id="docs-internal-guid-f7046c10-7fff-b4eb-8815-1a0a2f6d1ae4"></strong></figcaption>
</figure>
<p dir="ltr">Let's take some inventory of what is actually going on in here and what we actually have.</p>
<h2 dir="ltr" role="presentation">Public Address</h2>
<p dir="ltr">We can see below the account name &ldquo;Account 1&rdquo; a string. That is exactly my address, <code>0x0d7785280fA17BD03B9a39E3472874A22788c1a5</code>. We can use a tool like <a href="https://etherscan.io/" rel="nofollow noreferrer">Etherscan</a> to view different addresses and what's been going on with them.</p>
<figure class="image"><img src="https://api.reliasoftware.com/uploads/try_to_look_up_your_address_on_etherscan_44955548d9.webp" alt="Try to look up your address on Etherscan" width="918" height="247">
<figcaption>Try to look up your address on Etherscan</figcaption>
</figure>
<p dir="ltr">So if we look at this address on Etherscan we can see that no transactions have happened. It's empty. It has zero ether in it. It has zero dollar worth in it.</p>
<figure class="image align-center"><img src="https://api.reliasoftware.com/uploads/nothing_in_look_up_result_f6e0f97cc4.webp" alt="Nothing in look-up result" width="851" height="415">
<figcaption>
<p dir="ltr">Nothing in look-up result</p>
<strong id="docs-internal-guid-0746745c-7fff-441a-a7ad-4145307cfb4b"></strong></figcaption>
</figure>
<p dir="ltr">This address here is unique and represents exclusively this single account that we've just created.</p>
<h2 dir="ltr" role="presentation">Mnemonic Phrase</h2>
<p dir="ltr">Our mnemonic that we've been given gives us access to manage multiple accounts in the wallet. With mnemonic, we can create, delete and access all wallet&rsquo;s accounts. This is why securing your mnemonic is so crucial especially if you have multiple different accounts.</p>
<h2 dir="ltr" role="presentation">Private key</h2>
<p dir="ltr">As we know, <a href="https://reliasoftware.com/blog/public-and-private-keys-for-transaction-verification">each account has a unique identifier called the public address. However there's also a private key to work with this account</a>, or a secret key. Private key is a single password associated with a single account. This is why when people say store your private keys in a safe place, they're usually referring to both your mnemonic and your private keys.</p>
<h2 dir="ltr" role="presentation">Networks - Mainnet and Testnet</h2>
<p dir="ltr">By default, we are going to use Ethereum Mainnet. But for programming, we will need to test our chains before publishing it, so we also have testnets for that purpose.</p>
<figure class="image"><img src="https://api.reliasoftware.com/uploads/network_selection_on_metamask_d4e4cbf719.webp" alt="Network selection on MetaMask" width="890" height="385">
<figcaption>
<p dir="ltr">Network selection on MetaMask</p>
<strong id="docs-internal-guid-a57f6128-7fff-6eed-e18c-139ded79771b"></strong></figcaption>
</figure>
<p dir="ltr">We will change to the testnet Sepolia. But you can choose any testnets because their behaviors should be mostly the same.</p>
<figure class="image align-center"><img src="https://api.reliasoftware.com/uploads/view_of_sepolia_testnet_bad40259d4.webp" alt="View of Sepolia testnet" width="874" height="426">
<figcaption>View of Sepolia testnet</figcaption>
</figure>
<p dir="ltr">We can see that Sepolia is using the token SepoliaETH as the default token for transactions and our amount of SepoliaETH is 0. So, we have to earn some tokens before being able to create a transaction.</p>
<h2 dir="ltr" role="presentation">Faucet Application - Transaction Created by ChainLink Faucet</h2>
<p dir="ltr">For testing on testnets, free tokens can be claimed from &ldquo;faucet&rdquo; applications. We can use any available faucets. Here, we are going to claim from <a href="https://faucets.chain.link/" rel="nofollow noreferrer">https://faucets.chain.link/</a>.</p>
<figure class="image align-center"><img src="https://api.reliasoftware.com/uploads/select_ethereum_sepolia_on_chainlink_faucet_8888b2cc9a.webp" alt="Select Ethereum Sepolia on ChainLink faucet" width="830" height="404">
<figcaption>
<p dir="ltr">Select Ethereum Sepolia on ChainLink faucet.</p>
<strong id="docs-internal-guid-0e7cb93a-7fff-d301-60af-5075c28c1885"></strong></figcaption>
</figure>
<p dir="ltr">As we are testing with Sepolia, we will pick the option &ldquo;Ethereum Sepolia&rdquo; that will drip 250 LINK to us. We can use LINK, another type of token, for transactions instead of the default token SepoliaETH. Then, click &ldquo;Continue&rdquo;.</p>
<figure class="image align-center"><img src="https://api.reliasoftware.com/uploads/get_tokens_view_32242d6dcd.webp" alt="Get tokens view" width="813" height="507">
<figcaption>Get tokens view</figcaption>
</figure>
<p dir="ltr">Now, enter the address of our &ldquo;Account 1&rdquo; and &ldquo;Get tokens&rdquo;. We&rsquo;re going to wait a little bit. Once the token transfer is completed, go to <a href="https://sepolia.etherscan.io/" rel="nofollow noreferrer">Sepolia Etherscan</a> - Etherscan for only Sepolia network (different from Etherscan we mentioned before that is for mainnet). Let&rsquo;s search the address to see what happened.</p>
<blockquote>
<p><em><strong data-start="108" data-end="155">How long does an Ethereum transaction take? </strong>An Ethereum transaction usually takes <strong>15 seconds to 5 minutes</strong>, depending on network congestion and gas fee settings. On testnets like Sepolia, it can be&nbsp;even faster (often processed within a few seconds).</em></p>
</blockquote>
<figure class="image align-center"><img src="https://api.reliasoftware.com/uploads/the_token_transfer_was_scanned_2b5d38bc37.webp" alt="The token transfer was scanned" width="801" height="434">
<figcaption>The token transfer was scanned.</figcaption>
</figure>
<p dir="ltr">We can see a record that includes some information about &ldquo;from&rdquo; address of someone, &ldquo;to&rdquo; address that is mine, amount of token is 250. You can explore more by clicking on the transaction hash.</p>
<p dir="ltr">Going back to our MetaMask wallet, now, in &ldquo;Account 1&rdquo;, we should get 250 LINKs. This is a transaction ChainLink created.</p>
<figure class="image align-center"><img src="https://api.reliasoftware.com/uploads/a_new_token_link_added_to_the_account_with_250_link_9d0fe885f7.webp" alt="A new token, LINK, added to the account with 250 LINK" width="851" height="415">
<figcaption>A new token, LINK, added to the account with 250 LINK</figcaption>
</figure>
<h2 dir="ltr" role="presentation">Gas, Gas Price, Gas Limit, and Ethereum Transaction Fee</h2>
<p dir="ltr">Let&rsquo;s look further at the transaction details of the recent token transfer.</p>
<figure class="image align-center"><img src="https://api.reliasoftware.com/uploads/token_transfer_transaction_detail_8f9c5622d7.webp" alt="Token transfer - Transaction detail" width="940" height="590">
<figcaption>
<p dir="ltr">Token transfer - Transaction detail</p>
<strong id="docs-internal-guid-520d18f0-7fff-9408-0ad5-6fb27e907a68"></strong></figcaption>
</figure>
<p dir="ltr">We can see more about status, block, etc. But the crucial things we should notice are the &ldquo;Transaction Fee&rdquo; and &ldquo;Gas Price&rdquo;. What is gas and gas price? How can we calculate the fee for each transaction?</p>
<p dir="ltr">Gas is a unit of computational measure. The more computation a transaction uses, the more gas you have to pay for. Every transaction that happens on-chain pays a &ldquo;gas fee&rdquo; to node operators.</p>
<p dir="ltr">Wei is the unit for measuring gas price and fee.</p>
<table style="border-collapse: collapse; width: 36.1702%; height: 81.1875px; margin-left: auto; margin-right: auto; border: 1px solid rgb(0, 0, 0);" border="1"><colgroup><col style="width: 100%;"></colgroup>
<tbody>
<tr style="height: 81.1875px;">
<td style="height: 81.1875px; border-color: rgb(0, 0, 0);">
<p dir="ltr" style="text-align: center;">1 GWei = 109 Wei</p>
<p dir="ltr" style="text-align: center;">1 ETH = 109 GWei</p>
</td>
</tr>
</tbody>
</table>
<p dir="ltr">Gas Price is how much a transaction costs per unit of gas.</p>
<table style="border-collapse: collapse; width: 57.2695%; height: 34px; border: 1px solid rgb(0, 0, 0); background-color: rgb(248, 202, 198); margin-left: auto; margin-right: auto;" border="1"><colgroup><col style="width: 100%;"></colgroup>
<tbody>
<tr>
<td style="border-color: rgb(0, 0, 0); text-align: center;">Transaction fee = Gas Used x Gas Price</td>
</tr>
</tbody>
</table>
<p dir="ltr">For example: 21000 gas used x 1 GWEI per gas = 21000 GWEI</p>
<h2 dir="ltr">Summary</h2>
<p dir="ltr">Transactions on a live blockchain are the fundamental units of activity, representing the transfer of value or data between accounts. These transactions are recorded in blocks, which are then added to the chain in order. By investigating Ethereum Sepolia Testnet, we have understood more basic concepts of a blockchain wallet and in advance explored a transaction in very details of Gas and Transaction Fee.</p>
<p style="text-align: right;"><em>&gt;&gt;&gt; Follow and Contact&nbsp;<a href="https://reliasoftware.com/">Relia Software</a>&nbsp;for more information!</em></p>

<p class="" data-start="295" data-end="453">Learn how to set up MetaMask, use the Sepolia testnet, claim free tokens, and explore Ethereum transactions with full details on gas fees and wallet security.</p>

How to Create An Ethereum Transaction on A Live Blockchain? | Relia Software

How to Create An Ethereum Transaction on A Live Blockchain?

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<p dir="ltr">Vite has become a cornerstone of <a href="https://reliasoftware.com/blog/web-development-trends">modern web development</a>, offering a faster experience compared to traditional bundlers. Vite, meaning "fast" in French, lives up to its name by leveraging native ES modules during development and Rollup for bundling production code.</p>
<p dir="ltr">We will explore how Vite's innovative approach to development processes allows developers to create high-performance web applications with unparalleled speed and ease. I'll also break down how to <a href="https://reliasoftware.com/blog/building-front-end-applications-with-react">create React app</a> using Vite with simple steps.</p>
<h2><span id="input-sentence~1">What is Vite?</span></h2>
<p><span id="input-sentence~1"></span><strong><span id="input-sentence~1">V</span><span id="input-sentence~1">ite is a modern JavaScript build tool that provides a faster and more efficient development experience compared to traditional bundlers like Webpack. </span></strong><span id="input-sentence~2">Vite's speed comes from a combination of architectural choices that optimize both the development and production build processes. Here are some its strong features:</span></p>
<ul>
<li dir="ltr" role="presentation"><strong>Native ES Modules During Development</strong></li>
</ul>
<p dir="ltr">Instead of bundling the entire application during development, Vite leverages native ES modules, which are supported by modern browsers. This allows the browser to request individual modules as needed, resulting in much faster server startup times and quicker updates. Essentially, it only processes code that is actually needed at that moment.</p>
<ul>
<li dir="ltr" aria-level="1">
<p dir="ltr" role="presentation"><strong>esbuild</strong></p>
</li>
</ul>
<p dir="ltr">Vite utilizes esbuild, an extremely fast JavaScript bundler written in Go, for dependency pre-bundling. esbuild's performance is significantly better than traditional JavaScript-based bundlers like Webpack, especially for large projects. This speeds up the process of resolving and transforming dependencies.</p>
<ul>
<li dir="ltr" aria-level="1">
<p dir="ltr" role="presentation"><strong>On-Demand Compilation</strong></p>
</li>
</ul>
<p dir="ltr">During development, Vite only compiles the code that is actively being used in the browser. This "on-demand" approach avoids unnecessary processing of the entire codebase, leading to faster initial loads and updates.</p>
<ul>
<li dir="ltr" aria-level="1">
<p dir="ltr" role="presentation"><strong>Optimized Production Builds with Rollup</strong></p>
</li>
</ul>
<p dir="ltr">For production builds, Vite uses Rollup, a highly efficient JavaScript bundler that focuses on producing optimized and lean bundles. This ensures that the final production code is as small and performant as possible.</p>
<p dir="ltr">These factors combine to create a development experience that is significantly faster and more responsive than traditional build tools.</p>
<h2>4 Steps to Setup a Vite React App</h2>
<h3 dir="ltr" role="presentation">Prerequisites</h3>
<p dir="ltr">First, we will use Node.js for a demo. Vite supports Node.js version 18 or later. Besides, we also need a node package management tool such as npm, yarn or pnpm.</p>
<h3 dir="ltr" role="presentation">Step 1: Create the Vite Project</h3>
<p dir="ltr">Next, open a terminal and navigate to the directory where we want to create our React project. Then, run this command:</p>
<pre class="language-yaml"><code>yarn create vite your-project-name -- --template react</code></pre>
<p dir="ltr">It will automatically generate for us an initial React source with a <code>vite.config.js</code> or <code>vite.config.ts</code> file in our project's root directory that allows us to customize Vite's behavior.</p>
<figure class="image align-center"><img style="display: block; margin-left: auto; margin-right: auto;" src="https://api.reliasoftware.com/uploads/vite_config_js_file_3d387aa9c9.webp" alt="vite.config.ts file" width="375" height="460">
<figcaption>vite.config.ts file</figcaption>
</figure>
<h3 dir="ltr" role="presentation">Step 2: Install Dependencies</h3>
<p dir="ltr">Next step, to make the initial project work, we need to install all necessary packages. Then run:</p>
<pre class="language-yaml"><code>yarn install</code></pre>
<h3 dir="ltr" role="presentation">Step 3: Run the Development Server</h3>
<p dir="ltr">Now, everything is prepared for running the app. Start the development server with the command:</p>
<pre class="language-yaml"><code>yarn dev</code></pre>
<p dir="ltr">Vite will start a development server, and you'll see a message in your terminal indicating the local URL where your app is running (usually <span style="text-decoration: underline;">http://localhost:5173</span>). Try to access that URL, this is something you would see.</p>
<figure class="image align-center"><img src="https://api.reliasoftware.com/uploads/vite_message_4f16d1fd9e.webp" alt="a message in your terminal indicating the local URL where your app is running" width="767" height="374">
<figcaption>A message in your terminal indicating the local URL where your app is running.</figcaption>
</figure>
<h3 dir="ltr" role="presentation">Step 4: Start coding</h3>
<p dir="ltr">Seems everything is set up successfully. We can start modifying the code and building your React application. Vite's hot module replacement (HMR) will automatically update the browser as you make changes.</p>
<h2 dir="ltr" role="presentation">Vite configuration</h2>
<p dir="ltr">We already started a Vite app successfully, but one very important thing we need to know is Vite configuration.</p>
<p dir="ltr">The initial Vite configuration file vite.config.js that Vite generated for us is like this:</p>
<pre class="language-javascript"><code>import { defineConfig } from 'vite'
import react from '@vitejs/plugin-react'


// https://vite.dev/config/
export default defineConfig({
  plugins: [react()],
})
</code></pre>
<p dir="ltr">Let&rsquo;s try to remove everything here, only export an empty configuration.</p>
<pre class="language-javascript"><code>export default {}
</code></pre>
<p dir="ltr">The server is still accessible, but nothing was rendered. If we open the browser console, we can see the error &ldquo;<strong>Uncaught ReferenceError: React is not defined</strong>&rdquo;. This is because this React app is configured to use Vite for bundling.</p>
<p dir="ltr">Anyway, let&rsquo;s test some settings to understand what we can do with Vite.</p>
<h3 dir="ltr" role="presentation">Base URL path for the app</h3>
<p dir="ltr">In some complex projects, we would like to run our app at a specific base path. For example, our React app is built as an admin dashboard, so we want the app to always be located at the URL path /admin. We can define like this:</p>
<pre class="language-javascript"><code>export default {
  base: '/admin/'
}
</code></pre>
<p dir="ltr">Restart the app, we can see</p>
<figure class="image align-center"><img style="display: block; margin-left: auto; margin-right: auto;" src="https://api.reliasoftware.com/uploads/react_apps_routes_is_on_admin_base_url_a373fd3582.webp" alt="React app&rsquo;s routes is on /admin base URL" width="475" height="178">
<figcaption>React app&rsquo;s routes are on /admin base URL.</figcaption>
</figure>
<p dir="ltr">Now, our React app&rsquo;s routes are on /admin base URL.</p>
<h3 dir="ltr" role="presentation">Built-in function defineConfig()</h3>
<p dir="ltr">Similar to &ldquo;base&rdquo; settings, we also have lots of others such as &ldquo;<code>envPrefix</code>&rdquo;, &ldquo;<code>server</code>&rdquo;, &ldquo;<code>css</code>&rdquo;, &ldquo;<code>preview</code>&rdquo;, &ldquo;<code>logLevel</code>&rdquo;, &ldquo;<code>envDir</code>&rdquo;, etc., but it&rsquo;s hard to remember all. Vite package already has a built-in function <code>defineConfig()</code> that officially helps us set up Vite more easily.</p>
<p dir="ltr">Instead of the way we configured &ldquo;base&rdquo; above, we can write like this, pass a config object to <code>defineConfig()</code> function. The app still works the same.</p>
<pre class="language-javascript"><code>import { defineConfig } from 'vite'


export default defineConfig({
  base: '/admin'
})
</code></pre>
<p dir="ltr">The <code>defineConfig()</code> actually has other overrides for lots of use cases. It can be used by passing into a callback function.</p>
<pre class="language-javascript"><code>export default defineConfig(({command, mode, isSsrBuild}) =&gt; {
  console.log('Server starting:', {command, mode, isSsrBuild})
  return {}
})
</code></pre>
<p dir="ltr">This code introduces 3 inputs: <code>command</code>, <code>mode</code> and <code>isSsrBuild</code>. Here is the result including a log in the startup period if we run &ldquo;<code>yarn dev</code>&rdquo;.</p>
<p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://api.reliasoftware.com/uploads/a_log_in_the_startup_period_if_we_run_yarn_dev_a014e90c7e.webp" alt="a log in the startup period if we run &ldquo;yarn dev&rdquo;" width="697" height="196"></p>
<p dir="ltr">Based on these overrides, we can customize the Vite configuration for each input set. For instance, against the mode &ldquo;production&rdquo;, we will not set up the base URL, but regarding the mode &ldquo;development&rdquo;, the base URL should be &ldquo;<code>/staging</code>&rdquo;.</p>
<p dir="ltr">Remember that we always need to return a config object for all cases.</p>
<p dir="ltr">Furthermore, <code>defineConfig()</code> also accepts async callbacks.</p>
<h3 dir="ltr" role="presentation">A sample Vite configuration for the React app</h3>
<pre class="language-javascript"><code>import { defineConfig } from 'vite'
import react from '@vitejs/plugin-react'
import path from 'path'


export default defineConfig({
  plugins: [react()],
  resolve: {
    alias: {
      '@': path.resolve(__dirname, './src'), // Example: Alias '@' to the 'src' directory
      '@components': path.resolve(__dirname, './src/components'), // Example: Alias '@components' to the components directory
      '@pages': path.resolve(__dirname, './src/pages'), // Example: Alias '@pages' to the pages directory
      '@assets': path.resolve(__dirname, './src/assets'), // Example: Alias '@assets' to the assets directory
      '@hooks': path.resolve(__dirname, './src/hooks'), // Example: Alias '@hooks' to the hooks directory
      '@utils': path.resolve(__dirname, './src/utils'), // Example: Alias '@utils' to the utils directory
      '@services': path.resolve(__dirname, './src/services'), // Example: Alias '@services' to the services directory
    },
  },
  server: {
    port: 3000, // Change the development server port if needed
    open: true, // Automatically open the browser on server start]
  },
  build: {
    outDir: 'dist', // Output directory for the production build
    sourcemap: true, // Generate sourcemaps for debugging production builds
  },
})
</code></pre>
<p>&gt;&gt;&nbsp;<em>Read more: </em><em>Top 12 Best <a href="https://reliasoftware.com/blog/javascript-frameworks">Javascript Frameworks</a> for Your Projects</em></p>
<h2 dir="ltr" role="presentation">Conclusion</h2>
<p dir="ltr">In conclusion, Vite significantly enhances <a href="https://reliasoftware.com/blog/custom-web-app-development">the development and build processes for modern web applications</a>. Its focus on on-demand compilation and optimized production builds translates to a faster and more efficient developer experience.</p>
<p dir="ltr">By demonstrating how to create and configure a Vite React app, we've highlighted its ease of use and flexibility. Ultimately, Vite's speed and efficiency make it a <a href="https://reliasoftware.com/blog/most-popular-web-development-frameworks">powerful tool for building high-performance web applications</a>, streamlining workflows and accelerating <a href="https://reliasoftware.com/blog/software-development-life-cycle-sdlc">development cycles</a>.</p>
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<p><span id="input-sentence~1">V</span><span id="input-sentence~1">ite is a modern JavaScript build tool that provides a faster and more efficient development experience compared to traditional bundlers like Webpack.</span></p>

How to Setup and Create Vite React App? Code Sample Included | Relia Software

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How to Setup and Create Vite React App? Code Sample Included

<p><a href="https://reliasoftware.com/blog/what-is-blockchain-technology">A blockchain is a decentralized, immutable ledger</a> that records transactions across a network of computers. You can think it likes a notebook that everyone can see and update, but no one can erase or change what's already written. That's the idea behind blockchain.</p>
<p>Today we will delve deeper into the inner workings of blockchain technology. I'll explain how blockchain works using simple ideas like:</p>
<ul>
<li>Hashing: Turning data into a unique code.</li>
<li>Blocks: How data is grouped together.</li>
<li>Mining: The process of confirming and linking these groups.</li>
<li>Decentralization: How many computers work together to keep everything honest.</li>
</ul>
<p>This guide will help you understand the basic building blocks of blockchain technology and why it has the potential to change how we manage data and trust in our digital world.</p>
<p>&gt;&gt;&nbsp;<em>Read more: </em></p>
<ul>
<li><a href="https://reliasoftware.com/blog/advantages-and-disadvantages-of-blockchain"><em>Advantages and Disadvantages of Blockchain Technology</em></a></li>
<li><em>How to <a href="https://reliasoftware.com/blog/create-an-ethereum-transaction">Create An Ethereum Transaction on A Live Blockchain</a>?</em></li>
<li><em>How to <a href="https://reliasoftware.com/blog/public-and-private-keys-for-transaction-verification">Use Public and Private Keys for Transaction Verification</a>?</em></li>
</ul>
<h2>Hash Algorithm</h2>
<p>To understand blockchain, we need to grasp the concept of hashing. Hashing is a process that transforms any input data, regardless of its size or complexity, into a unique, fixed-length string of characters. These inputs can be a text document, an image, a video, or even a complex financial transaction This string, known as a hash, acts as a unique fingerprint for the original data.</p>
<p dir="ltr">This unique hash has several crucial properties:</p>
<ul>
<li dir="ltr" role="presentation">Uniqueness: Ensure that each piece of data has a distinct and unalterable identifier.</li>
<li dir="ltr" role="presentation">Fixed Length: Be efficient in storing and comparing hashes.</li>
<li dir="ltr" role="presentation">Deterministic: Given the same input data, the hash function will always produce the same hash.</li>
</ul>
<p dir="ltr">Popular hash functions used in blockchain technology include SHA-256 and Keccak-256 (used by Ethereum). Although different blockchains might use different algorithms, the core principles of hashing remain the same.</p>
<figure class="image align-center"><img style="display: block; margin-left: auto; margin-right: auto;" src="https://api.reliasoftware.com/uploads/hash_algorithm_384d9adbfe.webp" alt="Hash Algorithm" width="650" height="390">
<figcaption>Hash Algorithm</figcaption>
</figure>
<h2 data-start="11" data-end="106">Block</h2>
<p data-start="11" data-end="106">A block in a blockchain is like a page in a ledger. It contains three key pieces of information:</p>
<ul data-start="108" data-end="354">
<li data-start="108" data-end="165"><strong data-start="110" data-end="127">Block Number:</strong> Shows the block&rsquo;s order in the chain.</li>
<li data-start="166" data-end="273"><strong data-start="168" data-end="177">Data:</strong> Includes details like transaction records, smart contracts, or any other important information.</li>
<li data-start="274" data-end="354"><strong data-start="276" data-end="286">Nonce:</strong> A unique value that miners must find to create a valid block.</li>
</ul>
<p>How Does Blockchain Mining Work?</p>
<p>To validate a block, miners (nodes perform mining) combine the block number, data, and a trial nonce value. This combined information is then fed into a cryptographic hash function that represents the entire block's contents.</p>
<p>The crucial aspect of mining lies in finding a nonce that, when hashed with the block's data and number, produces a hash meeting specific criteria. In the case of Bitcoin, the criteria might be to find a hash that starts with a certain number of leading zeros. In Ethereum, the criteria may be different.</p>
<p>Regardless of the specific criteria, the process of finding the correct nonce is computationally intensive and requires significant processing power. This mining process is essential for securing the blockchain network and adding new blocks to the chain. After mining completely, miners should receive some crypto as their rewards (aka. transaction fees).</p>
<figure class="image align-center"><img src="https://api.reliasoftware.com/uploads/how_mining_proceed_0be5c4d5a8.webp" alt="How Mining Proceed?" width="650" height="390">
<figcaption>How Mining Proceed?</figcaption>
</figure>
<h2><strong id="docs-internal-guid-88ad7629-7fff-6f61-83d9-154dfef35c91">Blockchain - Linked Blocks</strong></h2>
<p dir="ltr">A blockchain is a chain of interconnected blocks. Actually, each block contains data, a block number, a nonce (a unique value), and the hash of the previous block. This creates a continuous chain where each block is connected to the one before it.</p>
<p dir="ltr">The Genesis block, the first block in the chain, has a special case where its "previous hash" points to an arbitrary value, typically a string of zeros.</p>
<p dir="ltr">To validate a block, the block number, data, nonce, and the hash of the previous block are combined and then hashed. This process continues for each subsequent block, creating an unbroken chain of linked hashes.</p>
<p dir="ltr">This interdependency makes the blockchain immutable. If any data within a block is altered, its hash will change. This invalidates the hash of the subsequent block, which then invalidates the next, and so on down the chain.</p>
<p dir="ltr">However, this immutability is only as strong as the control over the blockchain itself. If a single node controls the majority of the mining power, they can potentially alter past blocks by recalculating the chain. This highlights the importance of decentralized control in public blockchains, where the mining power is distributed among many participants, making it significantly harder to manipulate the chain.</p>
<figure class="image align-center"><img src="https://api.reliasoftware.com/uploads/linked_blocks_1d0320a117.webp" alt="Linked Blocks" width="650" height="390">
<figcaption>Linked Blocks</figcaption>
</figure>
<h2 dir="ltr" role="presentation">Distributed Blockchain</h2>
<p dir="ltr">The true power of blockchain lies in its decentralized nature. In a distributed network, multiple independent nodes (peers) maintain their own copies of the blockchain. Each node validates transactions and adds new blocks to the chain independently.</p>
<p dir="ltr">The consensus mechanism ensures that all nodes agree on the valid state of the blockchain. This is achieved by comparing the hashes of the latest blocks across all nodes. If a node attempts to alter past transactions, its resulting hash will differ from the hashes of other nodes. This disagreement triggers a process where the majority of nodes reject the altered chain.</p>
<p dir="ltr">This decentralized approach ensures that no single entity can manipulate the blockchain without the agreement of the majority of network participants. It fosters trust and security by making it incredibly difficult for any individual or group to alter the historical record of transactions.</p>
<p dir="ltr">In a blockchain, transactions are recorded within blocks. Each block includes a set of transactions, and these transactions are incorporated into the block's hash. This ensures that any alteration to a transaction within a block will invalidate the block's hash, and consequently, the hashes of all subsequent blocks in the chain. Therefore, blockchain can be considered a digital ledger.</p>
<figure class="image align-center"><img src="https://api.reliasoftware.com/uploads/distributed_ledgers_53e2144382.webp" alt="Distributed Ledgers" width="650" height="390">
<figcaption>Distributed Ledgers</figcaption>
</figure>
<p>&gt;&gt;&nbsp;<em>Read more:&nbsp;</em></p>
<ul>
<li style="font-style: italic;"><em>Top 15 <a href="https://reliasoftware.com/blog/mobile-app-development-trends">Latest Mobile App Development Trends</a> in 2025</em></li>
<li style="font-style: italic;"><em>Top 6 <a href="https://reliasoftware.com/blog/healthcare-technology-trends">Healthcare Technology Trends</a> in 2025</em></li>
</ul>
<h2 dir="ltr">Final Thoughts</h2>
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<p data-start="0" data-end="426" data-is-last-node="" data-is-only-node="">In short, blockchain technology changes how we store and manage data. By using secure cryptography and a network of many computers instead of a central authority, it creates a reliable and transparent system. This technology can be used for many purposes&mdash;from financial transactions to <a href="https://reliasoftware.com/blog/best-supply-chain-management-software">supply chain management</a> and beyond. Although it's still evolving, blockchain has the potential to transform many areas of our daily lives.</p>
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<p>This blog explains how <span class="dg6jd">blockchain works step by step,</span> including: Hashing (Turning data into a unique code); Blocks (How data is grouped together), Mining, etc.</p>

How Does Blockchain Work? Step By Step with Diagram | Relia Software

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How Does Blockchain Work? Hash, Blocks, Mining

<p dir="ltr">After talking about &ldquo;<a href="https://reliasoftware.com/blog/what-is-blockchain-technology">What is Blockchain</a>?&rdquo;, you may ask yourself a lot of questions like what makes Bitcoin so interesting, why it's like digital gold, and how smart contracts add real-world value.&nbsp;That's what we're going to go into next.</p>
<p dir="ltr">We'll talk about the advantages of blockchain and smart contracts that are over our traditional system environments, as well as the challenges that we need to be concerned.</p>
<p dir="ltr">&gt;&gt;&nbsp;<em>Read more: </em><em>Top <a href="https://reliasoftware.com/blog/mobile-app-development-trends">Mobile App Development Trends</a> In 2025</em></p>
<h2 data-pm-slice="1 1 []"><strong>Advantages of Blockchain Technology</strong></h2>
<h3 data-pm-slice="1 1 []"><strong>Decentralized</strong></h3>
<p>Blockchains are decentralized, meaning there's no centralized source that controls the blockchain. You'll hear the term "decentralization" used a lot because it has a massive benefit - a more open and fair financial system.</p>
<p>Unlike traditional systems, individuals that make up a blockchain are independent and also known as node operators. They run the software that connects the whole blockchain together as a decentralized network. So, there's no single point of failure or control exists.</p>
<p><strong>Centralized vs. Decentralized System</strong></p>
<p data-pm-slice="1 1 []">A strong example of why decentralization matters is the GameStop stock saga of January 2021. A centralized entity abruptly halted trading of GameStop shares, showcasing how a single organization can wield immense control over financial markets. This incident highlighted a key risk&mdash;centralized systems can manipulate markets and restrict individual choices, raising concerns about fairness and transparency.</p>
<p>The 'bankless' movement shapes a future where individuals can manage their finances without relying on traditional banks. Historically, these centralized institutions have been criticized for questionable practices and the power to freeze or restrict access to funds without notice. This can cause financial instability for individuals who depend on these institutions.</p>
<p data-pm-slice="1 1 []">Blockchain solves this issue by removing intermediaries and giving individuals direct ownership and control over their assets. Through decentralization where power is distributed across multiple independent operators, users can freely transact without needing approval from centralized entities.</p>
<figure class="image align-center"><img src="https://api.reliasoftware.com/uploads/centralized_vs_decentralized_system_0a19b45c06.webp" alt="Centralized vs. Decentralized System" width="699" height="419">
<figcaption>Centralized vs. Decentralized System</figcaption>
</figure>
<h3 dir="ltr" role="presentation">Transparency &amp; Flexibility</h3>
<p dir="ltr">Blockchains offer transparency. Every action and rule is visible to all participants, eliminating the possibility of backdoor deals or secret privileges. This ensures a level playing field where everyone operates under the same set of clear and immutable rules.</p>
<p dir="ltr">It's important to note that while blockchain transactions are public, user identities can remain anonymous. By creating multiple accounts, individuals can interact with the blockchain in various ways, preserving their privacy. This anonymity, combined with the transparency of the system, empowers individuals and fosters a sense of freedom.</p>
<h3 dir="ltr" role="presentation">Speed and Efficiency</h3>
<p dir="ltr">Have you ever tried to make a withdrawal from the bank and it took three to five days? All the bank is doing is adding and subtracting numbers, basic first-grade math. So why does it take so long? This delay is largely due to centralized systems and manual processes.</p>
<p dir="ltr">Blockchain technology, on the other hand, offers significantly faster transaction times. By leveraging decentralized networks, blockchain transactions can be verified and processed within minutes, or even seconds, depending on the specific blockchain.</p>
<p dir="ltr">In contrast to traditional stock trading, which can take up to a week to settle a buy or sell order, blockchain-based systems can speed up these processes.</p>
<figure class="image align-center"><img src="https://api.reliasoftware.com/uploads/blockchain_technology_have_faster_transaction_times_0eee25be9e.webp" alt="Blockchain technology have faster transaction times" width="700" height="420">
<figcaption>Blockchain technology have faster transaction times.</figcaption>
</figure>
<h3 dir="ltr" role="presentation">Security and Immutability</h3>
<p dir="ltr">Blockchains are immutable, meaning they cannot be altered or corrupted. This fundamental property ensures the security of data, transactions, and digital assets. Unlike traditional systems where data loss can happen due to hardware failures or cyberattacks, blockchain networks maintain data integrity even if multiple nodes go offline. As long as a single node remains operational, the entire blockchain remains accessible and secure.</p>
<p dir="ltr">Hacking a blockchain is an extremely difficult task, far more challenging than attacking a centralized system. The decentralized nature of blockchains and the cryptographic techniques used make them highly resistant to cyber threats.</p>
<p dir="ltr">Furthermore, blockchain technology offers a secure and convenient way to store and manage assets. Instead of relying on physical storage or paper documents, digital assets can be securely stored on the blockchain. Access to these assets is controlled by private keys or mnemonic phrases, so there's no need for physical transportation or storage.</p>
<h3 data-pm-slice="1 1 []">Removal of Counterparty Risks</h3>
<p data-pm-slice="1 1 []">Smart contracts, in particular, remove conflict of interest in the traditional world. When we deal with users or individuals, they don't always have our best interests at heart. A lot of them are usually self-motivated in some sense and there's nothing wrong with that. That's how a lot of people are. However, when we make an agreement with them, this can have a serious conflict of interest when one party has control over execution.</p>
<p dir="ltr">Let's take insurance for example. I pay an insurance provider $100 a month and we have an agreement or a contract that they will pay my medical bills if I get hit by a motor.&nbsp; However, they have this massive conflict of interest. While the insurer promises to pay out claims, their primary goal is to maximize profits.</p>
<p dir="ltr">This can lead to disputes and delays when it comes time to fulfill the terms of the contract. Insurers may try to avoid paying claims by scrutinizing policies for loopholes or denying coverage based on technicalities.</p>
<p dir="ltr">This inherent conflict of interest is common in many contractual relationships. The party with the power to execute the contract may not always act in the best interest of the other party. As a result, individuals may need to resort to legal action to enforce their rights, leading to costly and time-consuming legal battles.</p>
<p dir="ltr">Smart contracts solve this issue by automating the execution of agreements without relying on biased intermediaries, making transactions more secure, transparent, and fair for all parties involved.</p>
<h3 data-pm-slice="1 1 []">Trust-Minimized Agreements</h3>
<p data-pm-slice="1 1 []">Smart contracts allow us to engage in trustless and trust-minimized agreements. We currently live in a world of brand-based agreements where we depend on brands or institutions to uphold their promises. If we engage in some agreement and we don't like the service provided, our only option is to switch to another provider&mdash;one that makes similar promises, requiring us to trust them once again.</p>
<p data-pm-slice="1 1 []">Smart contracts allow us to move from brand-based agreements to math-based agreements. These math-based agreements do not require trust, hence the name &ldquo;trustless&rdquo;. One plus one is always going to equal two in a math world. So, whatever the code determines is the input or output, that's exactly what's going to happen every single time.</p>
<p data-pm-slice="1 1 []"><strong>To sum up:</strong></p>
<p data-pm-slice="1 1 []">Now these lead to two major benefits, freedom and trustlessness. All these pieces allow us to live in a world that's more accountable, more trusting, and fairer. It allows us to work in an environment in a universe where things just work. It allows us the freedom to engage with other people how we wish because there's no centralized controlling body influencing every action that we make. All the rules are the same and no one's getting special treatment.</p>
<p>This brings out the new world of Economic Opportunity as well. As our lives become more and more digital, centralized services often restrict user choices and impose limitations based on profit motives. These platforms control interfaces, guide decisions, and benefit from user interactions. Smart contracts, decentralized applications and blockchains allows us to be free of these repressors and live in an environment that's truly free and trustless.</p>
<p>With smart contracts, we transition from an economy dominated by centralized platforms to one driven by open, automated, and transparent agreements that function independently of traditional institutions.</p>
<h2 data-pm-slice="1 1 []"><strong>Disadvantages of Blockchain Technology</strong></h2>
<p dir="ltr">Blockchain technology, while promising, also faces lots of significant challenges that prevent its widespread adoption and full potential.</p>
<h3 dir="ltr" role="presentation">Scalability</h3>
<ul>
<li dir="ltr" aria-level="1">
<p dir="ltr" role="presentation">Transaction throughput: Many blockchains struggle to process a high volume of transactions, leading to slow confirmation times and high fees.&nbsp;&nbsp;</p>
</li>
<li dir="ltr" aria-level="1">
<p dir="ltr" role="presentation">Network congestion: As the number of users and transactions grows, the network can become congested, further impacting performance.</p>
</li>
</ul>
<h3 dir="ltr" role="presentation">Complexity and User Friendliness</h3>
<ul>
<li dir="ltr" aria-level="1">
<p dir="ltr" role="presentation">Technical barriers: Blockchain technology can be complex to understand and implement, requiring specialized knowledge and skills.</p>
</li>
<li dir="ltr" aria-level="1">
<p dir="ltr" role="presentation">User experience: Many blockchain applications have a steep learning curve, making them less accessible to the general public.</p>
</li>
</ul>
<h3 dir="ltr" role="presentation">Interoperability</h3>
<ul>
<li dir="ltr" aria-level="1">
<p dir="ltr" role="presentation">External services: Different blockchains often operate independently, making it difficult to share data and collaborate across platforms.</p>
</li>
<li dir="ltr" aria-level="1">
<p dir="ltr" role="presentation">Standardization: A lack of standardized protocols and interfaces hinders seamless communication between blockchain networks.</p>
</li>
</ul>
<h3 dir="ltr" role="presentation">Regulatory Uncertainty</h3>
<ul>
<li dir="ltr" aria-level="1">
<p dir="ltr" role="presentation">Evolving regulations: The regulations for blockchain are still developing, creating uncertainty for businesses and developers.&nbsp;</p>
</li>
<li dir="ltr" aria-level="1">
<p dir="ltr" role="presentation">Compliance: Adhering to various regulatory requirements can be complex and costly.</p>
</li>
</ul>
<p>&gt;&gt;&nbsp;<em>Read more: </em></p>
<ul>
<li><em><a href="https://reliasoftware.com/blog/how-does-blockchain-work">How Does Blockchain Work</a>? Hash, Blocks, Mining</em></li>
<li><em>How to <a href="https://reliasoftware.com/blog/create-an-ethereum-transaction">Create An Ethereum Transaction on A Live Blockchain</a>?</em></li>
</ul>
<h2 dir="ltr" role="presentation">Summary</h2>
<p>Blockchain technology is changing the way we interact digitally by making transactions more transparent, secure, and efficient. It eliminates intermediaries, reduces risks, and allows for trustless agreements, creating a fairer <a href="https://reliasoftware.com/blog/fintech-app-development">financial system</a>.</p>
<p>However, challenges like scalability, usability, and regulation still need to be addressed for wider adoption. As blockchain continues to grow, its ability to transform industries and give individuals more control will grow. Applying this technology can lead to a more open and secure digital future.</p>
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<p>Advantages of Blockchain Technology are: Decentralized, Transparency, Speed, Security and Immutability, Removal of Counterparty Risks, Trust-Minimized Agreements.</p>

Advantages and Disadvantages of Blockchain Technology | Relia Software

What are Advantages and Disadvantages of Blockchain Technology?

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<p dir="ltr"><span id="input-sentence~0">In the digital age, where information flows freely and rapidly, the need for secure and transparent systems is more important than ever. Fortunately, blockchain technology appears to be a game-changing answer. It provides a new way to manage data and process transactions securely.</span><span id="input-sentence~1"> In this blog, let's explore together what blockchain is and how it&rsquo;s transforming the way we handle data.<br></span></p>
<p dir="ltr">&gt;&gt;&nbsp;<em>Read more: </em></p>
<ul>
<li dir="ltr"><em>What are&nbsp;<a href="https://reliasoftware.com/blog/advantages-and-disadvantages-of-blockchain">Advantages and Disadvantages of Blockchain Technology</a>?</em></li>
<li dir="ltr"><em><a href="https://reliasoftware.com/blog/how-does-blockchain-work">How Does Blockchain Work</a>? Hash, Blocks, Mining</em></li>
<li dir="ltr"><em>How to <a href="https://reliasoftware.com/blog/public-and-private-keys-for-transaction-verification">Use Public and Private Keys for Transaction Verification</a>?</em></li>
</ul>
<h2 dir="ltr">What is Blockchain?</h2>
<p dir="ltr"><strong>Blockchain is a decentralized, immutable digital ledger that records transactions across many computers.</strong> This distributed system ensures transparency, security, and trust in a wide range of applications.&nbsp;</p>
<p dir="ltr">Unlike traditional systems, blockchain eliminates the need for intermediaries, empowering individuals and organizations to interact directly and securely.</p>
<h2 dir="ltr">Understanding Blockchain Fundamentals</h2>
<p dir="ltr"><span id="input-sentence~2">To fully understand blockchain, we need to get familiar with its fundamentals, which will shape how we code and architect our smart contract applications.</span><span id="input-sentence~3"> Start with the 2 most well-known blockchains: Bitcoin and Ethereum.<br></span></p>
<h3 dir="ltr">Bitcoin &ndash; The Pioneer of Blockchain</h3>
<blockquote>
<p dir="ltr"><strong>Bitcoin is a decentralized digital currency, operating on a peer-to-peer network without the need for intermediaries like banks.</strong></p>
</blockquote>
<p dir="ltr"><span id="input-sentence~3">You've likely heard of Bitcoin, one of the earliest applications of blockchain technology. Introduced by the pseudonymous Satoshi Nakamoto in 2008, Bitcoin revolutionized peer-to-peer transactions by enabling decentralized, censorship-resistant finance powered by cryptography.</span><span id="input-sentence~4"> Like gold, its scarcity made many people consider it as a superior store of value. This digital gold can be bought, sold, and traded like any other asset.<br><br>Bitcoin's success was just the beginning. Its breakthrough motivated others to explore how blockchain could be used for even more applications.</span></p>
<figure class="image align-center"><img src="https://api.reliasoftware.com/uploads/what_is_bitcoin_35e8457796.webp" alt="Bitcoin &ndash; The Pioneer of Blockchain" width="789" height="473">
<figcaption>Bitcoin &ndash; The Pioneer of Blockchain (Source: Canva)</figcaption>
</figure>
<h3><strong id="docs-internal-guid-44b08517-7fff-b3d0-f287-e718c36499a1">Ethereum &ndash; The Next Generation of Blockchain</strong></h3>
<blockquote>
<p dir="ltr"><strong>Ethereum is an open-source, decentralized blockchain platform that enables developers to build and deploy smart contracts and decentralized applications (dApps).</strong></p>
</blockquote>
<p dir="ltr">Vitalik Buterin published a whitepaper outlining Ethereum, a new protocol that leveraged blockchain technology. Unlike Bitcoin, Ethereum introduced a groundbreaking feature: smart contracts. In 2015, Buterin and his co-founders launched the Ethereum project, enabling developers to build decentralized applications (dApps), decentralized organizations (DAOs), and smart contracts.&nbsp;</p>
<p dir="ltr">This innovative approach eliminated the need for third-party intermediaries or centralized authorities, empowering users to engage in peer-to-peer agreements directly on the blockchain. Essentially, Ethereum took the core principles of Bitcoin and expanded them to create a more versatile and programmable platform.</p>
<p dir="ltr">&gt;&gt;&nbsp;<em>Read more: </em><em>How to <a href="https://reliasoftware.com/blog/create-an-ethereum-transaction">Create An Ethereum Transaction on A Live Blockchain</a>?</em></p>
<figure class="image align-center"><img src="https://api.reliasoftware.com/uploads/what_is_ethereum_c784b7ec74.webp" alt="What is Ethereum?" width="801" height="481">
<figcaption>Ethereum &ndash; The Next Generation of Blockchain (Source: Canva)</figcaption>
</figure>
<h3 dir="ltr">Smart contracts - Bitcoin vs Ethereum</h3>
<p dir="ltr">Ethereum introduced a new feature - smart contract living in blockchain. What is really a smart contract? Why does it open lots of blockchain developments?</p>
<p dir="ltr">In reality, the concept of smart contracts wasn't entirely new. As early as 1994, Nick Szabo proposed the idea of self-executing contracts. These contracts, written in code and deployed on a blockchain, eliminate the need for intermediaries. Unlike traditional contracts, which rely on paper or digital documents and human enforcement, smart contracts are automatically executed by the blockchain network itself.</p>
<p dir="ltr">Ethereum, in particular, embraced smart contracts as a core feature, differentiating it from Bitcoin. While Bitcoin does support basic scripting capabilities, Ethereum's Turing-completeness allows for far more complex and versatile smart contracts. This intentional design choice reflects the different visions of the two projects: Bitcoin as a digital asset, and Ethereum as a platform for building decentralized applications.</p>
<p dir="ltr">Smart contracts are poised to revolutionize numerous industries, enabling trustless and transparent interactions between parties without the need for intermediaries.</p>
<figure class="image align-center"><img src="https://api.reliasoftware.com/uploads/smart_contracts_bitcoin_vs_ethereum_9eda65d2cd.webp" alt="Smart contracts - Bitcoin vs Ethereum" width="805" height="483">
<figcaption>Smart contracts - Bitcoin vs Ethereum (Source: Canva)</figcaption>
</figure>
<h2 dir="ltr">The Oracle Problem and Hybrid Smart Contracts</h2>
<h3 dir="ltr">Oracle Problem</h3>
<p dir="ltr">Blockchains are powerful tools, but they suffer from a significant limitation known as the Oracle Problem. Blockchains are deterministic systems, meaning they operate on a predefined set of rules and can only process information that's already on the chain. This closed-loop nature prevents them from directly accessing real-world data and executing external computations.</p>
<p dir="ltr">For smart contracts to function effectively and interact with the real world, they need a reliable source of external information. This is where oracles come into play. Oracles are systems that bridge the gap between blockchains and the real world. They provide real-world data and execute computations off-chain, then report the results back to the blockchain. By doing so, oracles enable smart contracts to make informed decisions based on real-world events.</p>
<p dir="ltr">To be more obvious, the Oracle problem prevents blockchains connecting directly to the world via 3-rd APIs.</p>
<p dir="ltr">But, Oracle cannot be centralized. Its data must be reliable and consistent.</p>
<p dir="ltr">So, Oracle would be decentralized as well and only offer data with origin proofs. Our blockchains now can trust these Oracles.</p>
<h3 dir="ltr">Hybrid Smart Contract</h3>
<p dir="ltr">Smart contracts that combine the power of on-chain logic and off-chain data are called Hybrid smart contracts.</p>
<p dir="ltr">Hybrid smart contract = Smart contract + off-chain components</p>
<p dir="ltr">The following keywords can be interchangeable: Smart contract application, Decentralized application, Decentralized protocol, and dApp.</p>
<h3><strong id="docs-internal-guid-7e74a6e9-7fff-c104-948c-285f2e50d676">Chainlink</strong></h3>
<p dir="ltr">Chainlink is a popular decentralized oracle network that empowers smart contracts to interact with the real world. By providing reliable and secure access to external data and computation, Chainlink enables hybrid smart contracts to function effectively.</p>
<p dir="ltr">Key Benefits of Chainlink:</p>
<ul>
<li dir="ltr" aria-level="1">
<p dir="ltr" role="presentation">Data Feeds: Access real-world data from various sources, including financial markets, weather conditions, and sports scores.</p>
</li>
<li dir="ltr" aria-level="1">
<p dir="ltr" role="presentation">Randomness: Generate verifiable random numbers for fair and transparent outcomes in games, lotteries, and other applications.</p>
</li>
<li dir="ltr" aria-level="1">
<p dir="ltr" role="presentation">External Computation: Execute complex computations off-chain, reducing gas fees and improving performance.</p>
</li>
<li dir="ltr" aria-level="1">
<p dir="ltr" role="presentation">Customizable Oracles: Build custom oracles to meet specific needs, allowing for greater flexibility and innovation.</p>
</li>
</ul>
<p dir="ltr">By leveraging Chainlink, developers can create more sophisticated and powerful dApps that can adapt to real-world events and deliver innovative solutions.</p>
<h2 dir="ltr">Summary</h2>
<p dir="ltr">We've explored the fundamental concepts of blockchain and smart contracts, starting with Bitcoin, the pioneering cryptocurrency. Bitcoin, often referred to as "digital gold," introduced the idea of decentralized, peer-to-peer transactions.</p>
<p dir="ltr">Ethereum, however, took blockchain technology to the next level by enabling the creation of smart contracts. These self-executing contracts, written in code, automate agreements and interactions, opening up a world of possibilities for decentralized applications (dApps).</p>
<p dir="ltr">To bridge the gap between the blockchain and the real world, oracles like Chainlink are crucial. They provide real-world data and computation to smart contracts, allowing them to interact with external systems and make informed decisions.</p>
<p dir="ltr">Hybrid smart contracts, which combine on-chain logic with off-chain data and computation, are becoming increasingly prevalent in the blockchain ecosystem. They empower developers to build more sophisticated and versatile dApps, driving innovation and reshaping industries.</p>
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<p>Blockchain is a decentralized, immutable digital ledger that records transactions across many computers, ensuring transparency, security, and trust in many applications.</p>

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