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Understanding Blockchain

Blockchain is a secure and transparent digital ledger used to store information, primarily for cryptocurrencies like Bitcoin and Ethereum. It consists of linked blocks containing transaction data, timestamps, and unique hashes, ensuring immutability and security through decentralization. Blockchain technology has applications in various fields, including smart contracts, supply chain tracking, and voting systems.

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26 views2 pages

Understanding Blockchain

Blockchain is a secure and transparent digital ledger used to store information, primarily for cryptocurrencies like Bitcoin and Ethereum. It consists of linked blocks containing transaction data, timestamps, and unique hashes, ensuring immutability and security through decentralization. Blockchain technology has applications in various fields, including smart contracts, supply chain tracking, and voting systems.

Uploaded by

anandhunandhu2627
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Understanding Cryptocurrency and Cryptography

Understanding Blockchain

What is Blockchain?

Blockchain is a special kind of database or ledger used to store information in a secure, transparent, and

unchangeable way. It's the backbone of most cryptocurrencies like Bitcoin and Ethereum, but it's used in

many other industries too.

How Blockchain Works (Simple Explanation):

1. Chain of Blocks

- Think of a block as a digital page that holds a list of transactions (or any data).

- These blocks are linked together in order, forming a chain - hence the name blockchain.

2. Each Block Contains:

- A list of recent transactions

- A timestamp

- A unique code called a hash

- The hash of the previous block

3. Security Through Linking

- Every block points to the one before it.

- If someone tries to change a block, its hash changes - which breaks the chain - making tampering obvious

and nearly impossible.

4. Decentralized Network

- Instead of being stored on one server, the blockchain lives on many computers (nodes) across the world.

- All nodes keep a copy of the entire chain.

- When new transactions happen, all nodes update together through consensus.

5. Immutable and Transparent


Understanding Cryptocurrency and Cryptography

- Once a block is added, it can't be edited or deleted.

- Everyone on the network can see the data - making it transparent.

Real-Life Analogy:

Imagine a notebook (ledger) shared by a classroom:

- Everyone writes their turn in order.

- No one can erase or change past notes.

- Everyone keeps a copy.

- If someone tries to cheat, the rest will notice and reject the fake version.

Used For:

- Cryptocurrencies (Bitcoin, Ethereum)

- Smart contracts

- Supply chain tracking

- Voting systems

- Medical records

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