A
blockchain is a chain of blocks where each block contains a list of
transactions. These blocks are linked using cryptographic techniques, ensuring
security and immutability.
Key
characteristics of blockchain:
- Decentralization: Unlike traditional
centralized databases (e.g., banks or government systems), blockchain
operates on a peer-to-peer network, removing the need for intermediaries.
- Transparency: All transactions
recorded on the blockchain are visible to all participants in the network.
- Immutability: Once a transaction is
added to the blockchain, it cannot be altered or deleted.
- Security: Transactions are encrypted and verified through a consensus mechanism, making hacking extremely difficult.
2.
How Blockchain Works
Step-by-Step
Process:
1. Transaction
Initiation: A user initiates a transaction (e.g., sending cryptocurrency or
verifying an asset in a supply chain).
2. Transaction
Broadcast: The transaction is sent to a network of computers (nodes) for
verification.
3. Validation
& Consensus: Nodes validate the transaction using consensus mechanisms like
Proof of Work (PoW) or Proof of Stake (PoS).
4. Block
Creation: Once validated, transactions are grouped into a block.
5. Block
Linking: The new block is linked to the previous block through cryptographic
hashes, forming a chain.
6. Finalization:
The transaction is permanently recorded, and the ledger updates across all
nodes.
Key
Components of Blockchain
A.
Blocks
Each
block contains:
- A list of transactions
- A timestamp
- A cryptographic hash of the previous
block
- A unique identifier (hash) for the
current block
B.
Nodes
Nodes
are computers connected to the blockchain network that validate transactions
and maintain the blockchain.
C. Consensus Mechanisms
Blockchain networks use different methods to validate transactions and reach agreement:
- Proof of Work (PoW): Used by Bitcoin;
miners solve complex mathematical puzzles to validate transactions.
- Proof of Stake (PoS): Validators are
selected based on the amount of cryptocurrency they hold.
- Delegated Proof of Stake (DPoS):
Users vote for representatives who validate transactions.
- Proof of Authority (PoA): Trusted
entities validate transactions in private blockchains.
D.
Smart Contracts
Smart
contracts are self-executing contracts with predefined rules stored on the
blockchain. They automatically execute when conditions are met.
No comments:
Post a Comment