Understanding Blockchain Technology Concepts

Aug 5, 2024

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.