1. Introduction to Blockchain Technology
1. Introduction to Blockchain Technology
Introduction to Blockchain Technology
Blockchain is a decentralized, distributed ledger technology that securely records and verifies transactions among a network of participants. Instead of relying on a single central authority (like a bank or government), blockchain networks depend on a global network of computers—each maintaining a copy of the ledger. This ensures transparency, security, and immutability of all recorded data.
History of Blockchain
The blockchain concept took off in 2008 with the publication of the Bitcoin whitepaper by the pseudonymous Satoshi Nakamoto. Bitcoin introduced the first practical use of blockchain, allowing people to send and receive digital currency without central intermediaries. Since then, blockchain has evolved beyond cryptocurrencies, finding applications in finance, supply chain, healthcare, and more. Today, it stands as one of the most transformative and rapidly growing technologies, paving the way for decentralized systems and innovative solutions across industries.
Key Characteristics of Blockchain
Decentralization: No central authority controls the database; it’s maintained by multiple nodes worldwide.
Immutability: Once data is recorded, it’s extremely difficult to alter or delete, enhancing trust.
Security: Cryptographic methods protect data from being tampered with or accessed by unauthorized parties.
Transparency: All participants see the same records, fostering accountability and reducing fraud.
Important Blockchain Terminologies
Node: Any computer or server that connects to the blockchain network and maintains a copy of the ledger.
Miner/Validator: Nodes that validate and record transactions on the blockchain in exchange for rewards or fees.
Transaction: A data entry (e.g., sending cryptocurrency) that is broadcast to the network and stored in a block.
Block: A group of verified transactions, linked (chained) in chronological order using cryptographic hashes.
Hash: A unique digital fingerprint of data, used to secure and link blocks together.
Consensus: The mechanism through which blockchain nodes agree on the validity of transactions (e.g., Proof of Work).
Smart Contract: Self-executing agreements with rules encoded directly into the blockchain, triggering actions once conditions are met.
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