Introduction to Blockchain Technology
In recent years, Blockchain technology has garnered significant attention from various sectors. But what exactly is Blockchain? Originally created as the framework for trading the digital currency, Bitcoin, it's a public electronic ledger that can be openly shared among different users. This creates an unchangeable record of their transactions, each one time-stamped and linked to the previous one.
Blockchain is, essentially, a chain of transactional blocks. Each block is a record of a new transaction. When a block is completed, it’s added to the chain. Bitcoin owners have the private password (a complex key) to an address on the chain, which is where their ownership is recorded. Essentially, its uniqueness lies in its security and decentralization, making it tamper-proof and reliable.
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Blockchain Basics: A Beginner's Guide
What is Blockchain?
Blockchain is a type of distributed ledger for maintaining a permanent and tamper-proof record of transactional data. A blockchain functions as a decentralized database that is managed by computers belonging to a peer-to-peer (P2P) network.
What is Cryptocurrency?
Cryptocurrency is a type of digital or virtual currency that uses cryptography for security. The most famous example of a cryptocurrency is Bitcoin.
What are the benefits of Blockchain?
Blockchain technology offers multiple benefits like decentralization, transparency, immutability, security, and privacy.
What is a smart contract?
A smart contract is a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code. The code and the agreements contained therein exist across a distributed, decentralized blockchain network.
How does a Blockchain transaction work?
When a block stores new data it is added to the blockchain. Blockchain, as its name suggests, consists of multiple blocks strung together. In order for a block to be added to the blockchain, however, four things must happen: a transaction must occur, that transaction must be verified, that transaction must be stored in a block and then, that block must be added to the chain.
