Introduction
Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network that can be open and shared in real time. It records the operations performed by each user (block node) and combines these operations into a secure and tamper-proof chain structure that is recorded and synchronized to all nodes on the network.
Blockchain is decentralized ledger
No central authority or third party is required in a blockchain to record and verify transactions and actions initiated by anyone. Therefore, blockchain is often seen as a decentralized ledger technology that can reduce the cost of trust for third parties.
Blockchain ensures that two or more parties can securely transfer digital assets when a transaction is made. When a transaction is completed, it is recorded into the blockchain. These records that are already on the chain can not be tampered with and other network members have direct public access to the information. These completed transactions will be recorded in a data structure defined as a "block". After that, all blocks are connected into a chain through specific rules, making them into a blockchain
Each block contains the cryptographic hash, timestamp and transaction data of the previous block, so the data already stored in the blockchain is difficult to be tampered with and is more secure.
Origin of Blockchain
The concept of blockchain technology was first introduced in 2008 by the founder of Bitcoin, Nakamoto Satoshi, in his whitepaper "Bitcoin: A Peer-to-Peer Payment System" along with Bitcoin. In other words, Bitcoin is a project based on blockchain technology implementation. However, it is important to note that Bitcoin is not completely equal to blockchain.
The Original Blockchain Network
As mentioned above, the first blockchain network was the Bitcoin network, created in 2009, and was the first grounded application of blockchain technology. Its value lies in allowing users to complete peer-to-peer value exchange without the need for any third-party trust.
Since the birth of Bitcoin and its network, various blockchains have emerged, such as Ethereum, Litecoin, etc. These projects aim to solve the current inefficient way of transferring value through innovative approaches. One of the most crucial is the emergence of "smart contracts".
Smart Contracts Open up Blockchain Possibilities
A smart contract is a set of code that can operate based on blockchain. By setting clear, defined rules, the code can run forever after it is deployed to blockchain by anyone.
Smart contracts can be used in a variety of ways, including but not limited to issuing tokens, generating wallets, establishing decentralized exchanges, etc. With the birth and development of the smart contract concept, it has now spawned more things that are difficult to achieve with native blockchain technology, such as decentralized finance (DeFi), non-fungible tokens (NFT), GameFi, etc.
Summary
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Blockchain is an open, shared, and tamper-evident public ledger. All participants using this ledger can complete transactions without going through a third party.
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Information on the blockchain is recorded in a "block" structure, each block contains the hash of the previous block, timestamp and transaction data, and is linked to each other in order, forming a chain of blocks.
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Bitcoin, the world's first blockchain network, was established in 2009.
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Blockchain technology brings us more innovative scenario applications, such as DApp, DeFi, NFT.
Disclaimers
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Crypto investment involves significant risks. Please proceed with caution. The course shall not be considered investment or financial advice.