Understanding the In’s and OUT’S of Blockchain Technology

Blockchain technology

What is a Blockchain?

Blockchain is a decentralized and immutable digital ledger that records transactions across multiple computers. It consists of a chain of blocks, each containing a set of transactions. Once data is added to a block, it is nearly impossible to alter, ensuring transparency and security.

How does it work?

Decentralization: Instead of relying on a central authority like a bank, blockchain relies on a network of nodes (computers) to validate and record transactions. Cryptography: Transactions are secured using cryptographic techniques, making it extremely difficult for unauthorized parties to tamper with data.

Consensus Mechanisms: Proof of Work (PoW) and Proof of Stake (PoS), ensure agreement among nodes before adding transactions to the blockchain.

SMArt COntracts

What are smart contracts?

Smart contracts are self-executing agreements with predefined rules and conditions encoded on a blockchain. When these conditions are met, the contract automatically executes without the need for intermediaries.

How do they work

Coding Rules: Developers write code to define the terms of the contract.

• Immutable Execution: Once deployed on the blockchain, the contract enforces itself, eliminating the need for intermediaries.

• Examples: Smart contracts can automate various processes, from simple payments to complex supply chain agreements