10 Things Every Blockchain Engineer Should Know
Blockchain is no longer just the backbone of Bitcoin (BTC) or cryptocurrencies. It is more than that. Its application in various industries is as wide as the seas. And despite the technology’s limitations and challenges, demand for blockchain engineers increased by more than 500% between 2018 and 2019. Many engineers are wanting to jump on the blockchain bandwagon. Blockchain engineers can have a head start or stay relevant if they know these 10 aspects of the industry. Maybe not all of them. But the more they know, the better.
Blockchain interoperability refers to the ability of separate blockchains to access, see and share information with each other. However, current blockchains are isolated and siloed from the next. They exist independently, perhaps because there is too much competition. Experts argue that blockchain interoperability will lead to the overall success of the industry. A good example is that of payment platforms such as PayPal, which can interoperate with other mobile payment apps. A bridge has to be built — say for example, between Bitcoin and Ether (ETH). Let’s imagine a world where it was impossible to send an email from Yahoo servers to Google’s Gmail servers.
Decentralized finance, commonly referred to as DeFi or open finance, refers to the provision of financial services such as lending, borrowing, insurance, savings, loans, trading and more on public blockchains. DeFi provides more benefits when compared to legacy financial services. According to analytics site Defipulse, the total value locked in DeFi surpassed $1.2 billion in February 2020. Decentralized finance is growing and has the potential to reach every human being with a smartphone.
As blockchain technology continues to evolve, the need for improved blockchain systems grows. Digital asset modeling language, or DAML, is a smart contract language that enables blockchain engineers to accurately code multi-party agreements for various blockchains. DAML is now open-source and expected to deploy improved developer experience and provide front-end support and ledger model improvements in 2020.
Blockchain-as-a-Service, or BaaS, is a managed blockchain model that allows engineers to build blockchain applications and other digital services over a distributed network. In this model, the industry provides the infrastructure and blockchain-building tools. The BaaS model provides an auditable transaction record, a middleware for monitoring application development, a modular and preconfigured network and infrastructure, and a platform architecture management.
Cryptojacking — also called malicious crypto mining — is an emerging online threat that involves malicious mining of cryptocurrencies on a victim’s device. Though crypto mining’s potential has not yet been fully explored, there has been a significant rise in cryptojacking instances. It is better to detect and prevent cryptojacking through network monitoring solutions since the threats are not easily detected by endpoint solutions.
