A blockchain network consists of different parts & a blockchain ecosystem refers to the different parts of a blockchain network & how these different parts of a blockchain network interact with each other. The different parts of a blockchain network each play a role contributing to the function of the blockchain network, imagine an automobile - it has different parts that make up the automobile such as the steering wheel, engine & tail lights to name just a few & each part plays a role for the effective functioning of the automobile.
An Ecosystem is a Tool for Investors
An ecosystem will tell investors how a blockchain works & is a health report of the blockchain network giving investors the health condition of the blockchain network.
What Is A Blockchain?
Think of a blockchain as a distributes LEDGER or a database that is distributed across various blockchain nodes. A blockchain is not controlled by a single entity or a central figure which is known as decentralization. Data is stored in blocks while is the reason it's called a blockchain.
This is what you find in any blockchain network:
• Developers
• Miners/Validators
• Stakeholders
1. Developers build & update the blockchain network.
2. Nodes are devices that run the software of the blockchain & keep an updated transaction history.
3. Miners & validators (like myself) are participants in the blockchain network's transaction validation process.
4. Stakeholders (again like myself being both a validator & stakeholder) hold the native token of the blockchain's cryptocurrency & have the right to make proposals & vote on proposals giving stakeholders a voice in the future of the blockchain network which is different to holding stocks which I have the opportunity to hold myself except my investment is in a publicly traded company with a central figure but those who purchase the native token of a blockchain network & use it for payments are categorized as stakeholders.
Smart Contracts & Project Creation
A smart contract is a self-executing blockchain contract, think of a smart contract as a program that runs on a blockchain.
Smart contracts extend the capabilities of blockchain technology & can prove to be a lucrative tool because of the opportunity to create new projects such as:
1. Decentralized (DeFi) Platforms: examples include the ability to create a peer-to-peer cryptocurrency lending.
2. Non Fungible Tokens (NFTs)
3. Blockchain Video Games
Previous Posts
https://www.publish0x.com/encryptocurrency-blogger/understanding-scalability-xjdrkkj
https://www.publish0x.com/encryptocurrency-blogger/using-a-robo-advisor-as-a-crypto-exchange-xkedyev
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