Blockchain Technology

Overview

• Blockchain is often described as a distributed ledger.
• The ledger is available for anyone to see, tracking individual transactions.

Key Characteristics

• Maintenance: Everyone participating in the blockchain maintains a copy of the ledger.
• Distribution: Changes are distributed to everyone maintaining a copy.

Applications

• Payment Processing
• Digital Identification
• Supply Chain Monitoring
• Digital Voting

Transaction Process

1. Initiate a transaction (e.g., Bitcoin transfer, data backup, house title transfer).
2. Transaction information is sent to everyone participating in the blockchain.
3. Each device maintains a copy of the transaction.
4. The transaction is added into a larger block of transactions.
5. A hash is added to the block for integrity.
   • Ensures the integrity of the transactions.
   • An invalid hash indicates tampering; the block is rejected by other devices.

Importance of Hash

• Provides integrity and security for transactions.
• An invalid hash from modification results in the block being thrown out.

Future Prospects

• Blockchain technology is versatile, seen in applications like cryptocurrency.
• Expected to have additional functionality and applications in the future.