Hey everyone, In this blog we are going to learn about basic fundamentals of the blockchain Now days we daily heared about blockchain and blockchain security metaverse etc so basically what is blockchain ?
Blockchain means a distributed ledger that records transactions between parties in a verifiable and permanent way.
Some terms we heared whenever someone speaks about the blockchains are :-
- ● Distributed Ledger:
- Ledger meaning A sequential log or each transactions
A distributed ledger is a database that is consensually shared and synchronized across multiple sites, institutions, or geographies, accessible by multiple people. It allows transactions to have public “witnesses.” The participant at each node of the network can access the recordings shared across that network and can own an identical copy of it. Any changes or additions made to the ledger are reflected and copied to all participants in a matter of seconds or minutes.
- ● Transactions:
- Destination receives something of value, such as a currency Transactions are data structures that encode the transfer of value between participants in the bitcoin system.
More Information regarding Transactions:-
https://www.oreilly.com/library/view/mastering-bitcoin/9781491902639/ch05.html#:~:text=Transactions%20are%20data%20structures%20that,global%20double%2Dentry%20bookkeeping%20ledger.
- ● Block:
- Blocks are data structures within the blockchain database, where transaction data in a cryptocurrency blockchain are permanently recorded.
More Information Regarding Block how Blockchain Block works:-
https://www.investopedia.com/terms/b/block-bitcoin-block.asp
- ● Hash:
- Hash is Algorithm which convert variable length of data into fix length of alpha numeric. Bitcoin uses SHA-256 and RIPEMD160 whereas Ethereum uses the Keccak-256 hash function.
- ● Governance:
- Different blockchains have different governance mechanisms. However, public blockchains typically have an “open” governance mechanism, allowing users and nodes to have input. In the case of a dispute, nodes can reject decisions by refusing to update to follow a “fork” in the blockchain software that implements the blockchain protocols.
Peer-to-Peer
Peer-to-Peer is a distributed networking or computing architecture that divides tasks or workloads across several computer systems (each one acting as an individual peer). P2P networks can be used to share any kind of digital data, including cryptocurrencies.
P2P exchanges allow the participants of the market to trade directly with each other without any trusted third party to process all trades.
‘Regular’ cryptocurrency exchanges are companies, which serve as intermediaries between their customers and make a profit by collecting fees. Conversely, the interactions between counterparties on peer-to-peer exchanges are directed exclusively by pre-programmed software, with no requirement for human middlemen.