Blockchain technology is a decentralized and distributed ledger system that allows multiple parties to record and store information in a secure, transparent, and tamper-resistant manner.
A decentralized and distributed ledger that records transactions across a network of computers. Each participant in the network has access to the entire database and its complete history.
For better understanding : Imagine a digital notebook that many people use to write down important things. This notebook is so special because once something is written, it can't be easily changed, and everyone has a copy to make sure no one cheats.
The distribution of control and authority across the blockchain network, eliminating the need for a central authority or intermediary.
Instead of having one boss or leader in charge of the notebook, it's shared among many people. This way, no one person can control everything, and it's fair for everyone.
Digital or virtual currencies that use cryptography for security and operate on a blockchain. Bitcoin and Ethereum are examples of cryptocurrencies.
Think of digital money that only exists in the digital notebook. It's like having special coins and tokens that you can use to buy things, but you can't hold them in your hand.
Individual computers or devices that participate in the blockchain network by maintaining a copy of the entire blockchain and validating transactions.
Nodes are like the keepers of the notebook. They are the computers owned by different people around the world who work together to make sure everything in the notebook is correct and secure.
A process used to achieve agreement on the state of the blockchain. Popular mechanisms include Proof of Work (used by Bitcoin) and Proof of Stake (used by Ethereum 2.0).
This is like a big team meeting where everyone who has a copy of the notebook agrees on what should be added or changed. It helps keep the notebook consistent and trustworthy.
A process used to achieve agreement on the state of the blockchain. Popular mechanisms include Proof of Work (used by Bitcoin) and Proof of Stake (used by Ethereum 2.0).
Imagine writing down a set of rules in the notebook, and when certain conditions are met, those rules automatically come to life. It's like having a magic agreement that executes itself.
Public blockchains are open to anyone and are typically used for cryptocurrencies. Private blockchains are restricted to a specific group of participants and are often used in enterprise settings.
Public blockchains are like notebooks that anyone can see and use. Private blockchains are like notebooks that only a specific group of people can access, like a secret club notebook.
Once a block is added to the blockchain, it cannot be altered or deleted. This ensures the integrity and security of the recorded transactions.
Once something is written in the notebook, it's there forever and can't be erased or changed easily. It's like having a super secure history book that never loses its pages.
Algorithms that take an input (or 'message') and produce a fixed-size string of characters, which is a unique identifier for the input. Used for data integrity and securing the blockchain.
Think of this like a secret code that helps keep the information in the notebook safe. It turns information into a unique set of numbers and letters that only certain people can understand.
Occur when a blockchain diverges into two separate chains due to changes in the protocol. Forks can be hard forks (irreversible split) or soft forks (backward-compatible split).
Forks are like different paths the notebook can take. Sometimes people don't agree on what should be in the notebook, so they go in different directions, creating separate versions.
These concepts provide a foundational understanding of blockchain technology. As you delve deeper, you'll encounter more advanced concepts and applications within the blockchain space. Explore detailed learning materials for Blockchain Technology in the "Blockchain-Resources" file located in the repository.
Contributed by Geeth Sowri to SERVER-X-101