Blockchain Technology - 24PCA413
,Definition of Blockchain
Blockchain is a distributed, decentralized, and immutable digital ledger used to
record transactions across multiple computers (nodes).
Each transaction is stored in a block, and blocks are cryptographically linked to
form a chain.
Once data is recorded, it cannot be altered or deleted without consensus of the
network.
Eliminates the need for a central authority or trusted intermediary.
Operates on peer-to-peer (P2P) network architecture.
,Key Characteristics of Blockchain
1. Decentralization
No single entity controls the network.
Every node maintains a copy of the ledger.
Reduces single point of failure.
Example:
Bitcoin network operates without a central bank.
2. Immutability
Once a block is added, it cannot be modified.
Any change requires altering all subsequent blocks, which is computationally infeasible.
Example:
Financial transaction history in blockchain cannot be tampered with.
, Key Characteristics of Blockchain
3. Transparency
All validated transactions are visible to network participants.
In public blockchains, data is openly verifiable.
Example:
Anyone can view Ethereum transactions using blockchain explorers.
4. Security
Uses cryptographic hashing and digital signatures.
Consensus mechanisms prevent fraudulent transactions.
Example:
SHA-256 hashing algorithm used in Bitcoin.
5. Distributed Ledger
Ledger is shared across multiple nodes.
All nodes validate and update the ledger independently.
Example:
Supply chain participants share the same product movement records.
,Definition of Blockchain
Blockchain is a distributed, decentralized, and immutable digital ledger used to
record transactions across multiple computers (nodes).
Each transaction is stored in a block, and blocks are cryptographically linked to
form a chain.
Once data is recorded, it cannot be altered or deleted without consensus of the
network.
Eliminates the need for a central authority or trusted intermediary.
Operates on peer-to-peer (P2P) network architecture.
,Key Characteristics of Blockchain
1. Decentralization
No single entity controls the network.
Every node maintains a copy of the ledger.
Reduces single point of failure.
Example:
Bitcoin network operates without a central bank.
2. Immutability
Once a block is added, it cannot be modified.
Any change requires altering all subsequent blocks, which is computationally infeasible.
Example:
Financial transaction history in blockchain cannot be tampered with.
, Key Characteristics of Blockchain
3. Transparency
All validated transactions are visible to network participants.
In public blockchains, data is openly verifiable.
Example:
Anyone can view Ethereum transactions using blockchain explorers.
4. Security
Uses cryptographic hashing and digital signatures.
Consensus mechanisms prevent fraudulent transactions.
Example:
SHA-256 hashing algorithm used in Bitcoin.
5. Distributed Ledger
Ledger is shared across multiple nodes.
All nodes validate and update the ledger independently.
Example:
Supply chain participants share the same product movement records.
