Quick Summary
Blockchain is a distributed ledger technology that maintains a continuously growing list of records secured using cryptography and consensus mechanisms.
Blockchain is a distributed ledger technology that stores data across a network of computers in a way that makes it difficult to alter, hack, or cheat the system. Each block contains transaction data, a timestamp, and a cryptographic hash of the previous block.
How Blockchain Works
- A transaction is requested and broadcast to a network of computers (nodes)
- The network validates the transaction using consensus mechanisms
- Validated transactions are grouped into a block
- The new block is added to the existing blockchain
- The update is distributed across the network
Key Characteristics
- Decentralized: No single point of control
- Transparent: All transactions are visible
- Immutable: Once recorded, cannot be altered
- Secure: Cryptographic protection
- Consensus-based: Network agreement required
Types of Blockchains
| Type | Access | Use Case |
|---|---|---|
| Public | Anyone (Bitcoin, Ethereum) | Cryptocurrency, DeFi |
| Private | Permissioned | Enterprise applications |
| Consortium | Group of organizations | Supply chain, banking |
Applications Beyond Crypto
- Supply chain tracking
- Digital identity verification
- Smart contracts
- Voting systems
- Healthcare records
- Real estate transactions
Key Points
- Distributed ledger technology
- Decentralized and transparent
- Immutable records
- Uses cryptography
- Consensus mechanism
- Beyond cryptocurrency