Introduction to blockchain
Demystifying Blockchain Technology
Blockchain is a complex concept that can be defined in various ways depending on the perspective. From a technical lens, blockchain is essentially a distributed peer-to-peer ledger that is cryptographically secure, append-only, immutable, and updatable only through consensus.
In simpler terms, blockchain can be thought of as a layer built on top of the internet that allows peers to exchange values and information directly without requiring a central intermediary. This establishes a decentralized consensus mechanism that removes the need for a centralized database administrator.
A block in the blockchain is a bundle of transactions used to organize data logically. Blocks are chained together by referencing the previous block (except for the genesis block which is hardcoded first). Blocks contain certain metadata like a timestamp and transaction counter. The specific structure of a block can vary across different blockchain implementations.
The innovation of blockchain is its ability to facilitate trusted information sharing between parties that lack mutual trust. This is achieved by distributing identical copies of the ledger across a peer-to-peer network and relying on cryptographic validation and decentralized consensus instead of a central authority.
By eliminating centralized control, blockchain enables the peer-to-peer exchange of value, data, and ownership in ways not previously possible. This has revolutionary potential to displace traditional intermediaries across many industries. However, blockchain technology is still emerging and facing adoption challenges. Understanding the basics is the first step to exploring its possibilities.
Definition of blockchain:
Blockchain is a distributed ledger technology that allows transactions and data to be recorded, shared, and synchronized across a decentralized peer-to-peer network of computers
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