Video transcript
An introduction to Blockchain
Learn about blockchain and how it can be used it today’s dynamic digital business environment.
At this point, you've probably heard about blockchain and cryptocurrencies such as bitcoin on the news or in casual conversation. it's a topic that dominates social media ignites debate and could very well change the future of finance, but what is blockchain we'll cover the blockchain basics in part one of this blockchain video series. Simply speaking a blockchain is a system in which a record of transactions is maintained across multiple computers called nodes that are linked in a peer-to-peer network. let's go through the core components.
- Cryptography a blockchain is a chain of blocks that contain transaction information each block of data contains a unique hash key which is like a fingerprint used to identify a block in its contents that links the blocks together. a block will contain the hash of the previous block making the chain immutable as any change will require a new hash that will break the chain.
- Distributed ledger instead of relying on a central authority to manage the ledger blockchains use a distributed peer-to-peer network each user on the network is called a node and each node maintains a copy of the entire blockchain history as well as the rules that govern the blockchain.
The consensus when a new transaction is submitted it goes through a series of validation procedures to ensure it is a valid and authorized transaction prior to it being added to the blockchain, through a process called mining or consensus the transaction is validated against a set of rules and ultimately added to the chain with blockchain two parties are able to make a transaction without a trusted intermediary such as a bank broker or clearinghouse.
let's say Alice wants to send a payment to bob without blockchain bob and Alice uses a number of intermediaries to facilitate the payment including clearing and settlement and to also ensure that bob does not send that same payment to Someone else known as double spending with blockchain digital trust is built into the system removing the need for a trusted third party.
To recap blockchain technology is a distributed ledger that provides users with digital trust to perform transactions blockchain uses cryptography and consensus methods to create these immutable blocks this technology has far-reaching impacts across industries now that you have the basics, you'll be able to join in on the conversations about this revolutionary technology.
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