Blockchain Technology
Definition:
Blockchain is a decentralized, distributed ledger technology that records transactions across many computers in such a way that the registered transactions cannot be altered retroactively.
Key Features:
Decentralized: No central authority controls the blockchain.
Immutable: Once data is recorded, it cannot be changed.
Transparent: All participants can view the ledger.
Secure: Uses cryptographic techniques for data integrity and security.
How It Works:
A transaction is requested.
The transaction is broadcast to a peer-to-peer network.
The network validates the transaction using algorithms (like Proof of Work or Proof of Stake).
Once verified, the transaction is combined with others to form a block.
The new block is added to the existing blockchain.
The transaction is complete.
Applications:
Financial services
Supply chain management
Voting systems
Healthcare records
Identity verification
🪙 Cryptocurrency
Definition:
A cryptocurrency is a digital or virtual currency that uses cryptography for security and operates on a blockchain.
Popular Cryptocurrencies:
Bitcoin (BTC): The first and most well-known cryptocurrency.
Ethereum (ETH): Known for smart contracts.
Ripple (XRP), Litecoin (LTC), and others.
How It Works:
Each transaction is verified and recorded on the blockchain.
No need for banks or financial institutions.
Cryptocurrencies are stored in digital wallets.
Benefits:
Low transaction fees
Fast cross-border transactions
Privacy and anonymity
No central control
Risks and Challenges:
Price volatility
Regulatory issues
Security threats like hacks
Irreversible transactions
