Blockchain is a revolutionary technology. It’s essentially a digital ledger of transactions that is duplicated and distributed across a network of computers.
Table of contents
Key Concepts
- Blocks: Data is grouped into blocks.
- Chain: Blocks are linked together chronologically, creating a chain.
- Decentralization: No single entity controls the blockchain.
- Cryptography: Secures the data and transactions.
Transaction Process
- A transaction is requested.
- The transaction is broadcast to the network.
- Network participants validate the transaction.
- Once verified, the transaction is grouped into a block.
- The block is added to the chain.
Security
Cryptography, specifically hashing, plays a crucial role in blockchain security. Each block contains a hash of the previous block, making it extremely difficult to alter any data.
ELI5 Blockchain
Imagine someone sends money. A “hash,” like a secret word, is created. This hash combines information about a solved math problem and the transaction. This ensures no one can fake the transaction. Each transaction is contained within notes about the solved math problem – these notes are called a block.
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