Blockchain - 1.4
Summary
Blockchain is a decentralized, distributed ledger that records transactions securely, ensuring data integrity and transparency through a consensus mechanism involving multiple nodes, making it resistant to tampering and ideal for applications like cryptocurrencies and secure record-keeping.
Notes:
Blockchain Overview
Blockchain is a distributed, decentralized ledger that records transactions in a secure and transparent manner. Each transaction is verified by multiple participants (nodes) within the network, ensuring trust and consensus without relying on a central authority.
In a blockchain, each participant has access to an identical version of the ledger, which helps build trust, accountability, and prevents unauthorized modifications. This shared nature of the ledger makes blockchain particularly useful in applications like cryptocurrency, supply chain management, and secure record-keeping.
Blockchain Process
Transactions are grouped into "blocks," which are then hashed and added to the blockchain. Hashing produces a unique value for each block, ensuring data integrity and preventing unauthorized modifications by malicious actors.
Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. By linking each block to the previous one, blockchain forms an immutable chain—altering one block would require recalculating all subsequent blocks, making tampering nearly impossible.
Blockchain is decentralized, meaning that validation of new transactions is performed by multiple nodes in the network. This consensus mechanism prevents a single point of failure and ensures consistency across the network. Common consensus algorithms include Proof of Work (PoW) and Proof of Stake (PoS).