Blockchain is a decentralized and distributed digital ledger technology that records transactions across multiple computers or nodes.It is designed to be secure, transparent, and resistant to modification.In a traditional centralized system, there is usually a central authority or intermediary, such as a bank or government, that maintains a central database and verifies transactions. In contrast, blockchain eliminates the need for a central authority by relying on a network of computers (nodes) that participate in the verification and recording of transactions.
How it works
In a blockchain network, each transaction is grouped together with other transactions into a block. Each block contains a reference to the previous block, creating a chain of blocks. This chain of blocks, known as the blockchain, serves as a historical record of all transactions that have occurred on the network.
To add a new block to the blockchain, the network of nodes must agree on its validity through a consensus mechanism. The most commonly used consensus mechanism is Proof of Work (PoW), where nodes compete to solve complex mathematical problems to validate and add blocks to the chain. Once a block is added, it is extremely difficult to alter the information within it, providing a high level of security and immutability.
What is Blockchain Ledger
A blockchain ledger is a digital record or database that stores all the transactions and data associated with a blockchain network. It is the fundamental component of a blockchain system and serves as a decentralized and transparent ledger of all activities that occur within the network.
The blockchain ledger is structured as a chain of blocks, where each block contains a set of transactions or data. Each block is linked to the previous block through a cryptographic hash, creating an immutable and tamper-proof sequence of blocks, commonly referred to as the blockchain.
The ledger stores a complete history of all transactions that have ever occurred on the blockchain network. It includes details such as the participants involved, the timestamp of each transaction, and any additional data associated with the transaction.
Network Nodes
The blockchain ledger is maintained and updated by a network of nodes or computers that participate in the validation and verification of transactions. These nodes work together to achieve consensus on the validity of transactions and ensure that the ledger remains consistent and accurate across the entire network.
One of the key features of a blockchain ledger is its decentralized nature. Instead of relying on a single central authority or intermediary to maintain the ledger, the responsibility is distributed among multiple nodes. This decentralization enhances security, resilience, and trust in the system since no single point of failure exists.
The transparency of the blockchain ledger is another notable characteristic. Once a transaction is recorded on the ledger, it becomes visible to all participants in the network. This transparency promotes accountability and trust among users as they can independently verify the transactions and the integrity of the ledger.
Overall, the blockchain ledger provides a secure, transparent, and tamper-proof record of all transactions and data within a blockchain network, enabling trust and enabling various applications beyond cryptocurrencies.
Top 5 Blockchain
As of my knowledge cutoff in September 2021, here are five notable blockchain platforms:
- Bitcoin (BTC): Bitcoin is the first and most well-known blockchain platform, introduced by an anonymous person or group known as Satoshi Nakamoto. It serves as a decentralized digital currency and a peer-to-peer payment system.
- Ethereum (ETH): Ethereum is a blockchain platform that goes beyond cryptocurrencies and enables the development of decentralized applications (DApps) and smart contracts. It introduced the concept of programmable blockchain, allowing developers to build and deploy their own decentralized applications on its network.
- Ripple (XRP): Ripple is a blockchain platform designed for fast and low-cost international money transfers and remittances. It focuses on facilitating real-time gross settlement systems, currency exchange, and remittance services.
- Hyperledger Fabric: Hyperledger Fabric is an open-source blockchain platform hosted by the Linux Foundation. It is specifically designed for enterprise applications and aims to provide a modular framework for building private, permissioned blockchain networks.
- Corda: Corda is another enterprise-focused blockchain platform developed by R3. It is designed for businesses in the financial sector and aims to enable secure and private transactions between parties while maintaining the benefits of blockchain technology.
Please note that the blockchain landscape is dynamic, and new platforms may have emerged or gained prominence since my last update. It’s always a good idea to conduct further research and stay updated on the latest developments in the blockchain space.
References
https://en.wikipedia.org/wiki/Blockchain
