Lecture on Blockchain Technology

Key Concepts

Distributed Ledger

• Definition: A ledger available for anyone to see, tracking individual transactions.
• **Characteristics: **
  • Everyone participating on the blockchain maintains the ledger.
  • Each participant has a copy of the ledger.
  • Changes are distributed to all participants.

Uses of Blockchain

• Payment Processing: Tracking transactions and ensuring their integrity.
• Digital Identification: Securely managing identities and credentials.
• Supply Chain Monitoring: Tracking the movement of goods and verifying their authenticity.
• Digital Voting: Ensuring transparency and security in electoral processes.

Transaction Process

1. Initiation: A transaction is initiated (e.g., Bitcoin transfer, data backup, house title transfer).
2. Distribution: Transaction information is sent to all blockchain participants.
3. Ledger Update: Each participant's ledger is updated with the transaction.

Block Formation

• Aggregation: Transactions are collected into a block.
• Hashing: A hash is added to the block to ensure integrity.
• Distribution: The block is sent to all participants.

Integrity and Security

• Hash Function: Ensures the integrity of transactions in a block.
  • Invalid hash indicates modification.
  • Modified blocks are rejected by the network.

Future of Blockchain

• Versatile technology with potential for various applications beyond cryptocurrency.
• Expectation of additional functionalities in the future.