Blockchain Technology

Explore the core principles of blockchain technology, including consensus mechanisms, cryptographic algorithms, and decentralized architectures.

Consensus Mechanisms

How blockchain nodes achieve agreement

Cryptography

Secure data handling and encryption techniques

Distributed Networks

Peer-to-peer architecture and network security

How Blockchain Works

Blockchain technology operates as decentralized ledger that records transactions across a network of computers. Each block contains a cryptographic hash of the previous block, ensuring immutability and integrity. Here's a high-level overview:

  1. 1 A transaction is initiated and broadcast to the network.
  2. 2 Miners or validators verify the transaction through consensus algorithms.
  3. 3 Once verified, the transaction is grouped into a block and cryptographically linked to the previous block.
  4. 4 The block is added to the blockchain and distributed across the network for verification.
Learn Implementation Details
Blockchain Architecture Diagram

Key Components

Blocks

Data containers that store transaction records and are sequentially linked.

Nodes

Network participants that validate transactions and maintain the distributed ledger.

Smart Contracts

Self-executing contracts with programmable rules that automate transactions.

Consensus Mechanisms

Different consensus algorithms power blockchain networks to validate transactions and maintain agreement. Here are the most common mechanisms:

  • Proof of Work (PoW)

    Miners solve computational puzzles to validate blocks.

  • Proof of Stake (PoS)

    Validators are chosen based on the amount of cryptocurrency they "stake."

  • Proof of Authority (PoA)

    Networks rely on a known validator set with authority to produce blocks.

  • Delegated Proof of Stake (DPoS)

    Token holders vote for representatives to validate transactions.

  • Proof of Burn (PoB)

    Miners "burn" coins to prove commitment to the network's long-term success.

Compare Consensus Algorithms
Consensus Mechanisms Comparison

Security by Design

Blockchain employs multiple layers of cryptographic security to ensure data integrity, confidentiality, and authenticity across its decentralized architecture.

Cryptographic Hashing

Ensures data immutability by linking blocks through unique hashes.

Private/Public Keys

Digital signatures authenticate users and secure transactions.

Distributed Validation

Multiple nodes verify transactions to prevent fraud and tampering.

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