1. Basic Concept of Blockchain
Blockchain is a distributed data storage technology that combines computer technologies such as peer-to-peer transmission, consensus mechanisms, and cryptographic algorithms to form a new application model. Essentially, blockchain is a decentralized database composed of a series of data blocks linked together through cryptographic methods. Each data block contains information about a network transaction used to verify its validity (anti-counterfeiting) and generate the next block.
2. How Blockchain Works
The working principle of blockchain is based on the Byzantine Generals Problem, with the core challenge being how transaction parties reach consensus and prevent malicious attacks without a trusted central node. Blockchain ensures transaction continuity, credibility, and immutability through the following steps:
- Create Transaction: Create a new transaction from the sender to the receiver.
- Broadcast to the Entire Network: The sender broadcasts the encrypted transaction record to the entire network.
- Information Verification: Receiving nodes verify the transaction record to ensure its authenticity.
- Packaging and Sealing: Once verified, the data is recorded into a block with a timestamp.
- Consensus Algorithm: All network nodes execute a consensus algorithm on the block containing the recorded data, accept the block, and add it to the chain.
3. Characteristics of Blockchain
- Data is Public and Transparent: Data on the blockchain is open to all participants, enhancing trust.
- Data History is Traceable: Once data is recorded on the blockchain, it cannot be changed, ensuring traceability.
- Data is Immutable: Blockchain uses cryptographic algorithms to ensure data security and immutability.
4. Introduction to Well-Known Blockchains
- Bitcoin: Bitcoin is the first application of blockchain technology. As a decentralized digital currency, it allows users to conduct peer-to-peer transactions without the involvement of intermediaries.
- Ethereum: Ethereum is a blockchain platform that supports smart contracts, allowing developers to build and deploy decentralized applications (DApps), expanding the scope of blockchain technology applications.
- Polkadot: Polkadot is a blockchain interoperability platform designed to connect different blockchain projects, facilitating communication and collaboration between different blockchains.
- Binance Smart Chain: This is a smart contract platform competing with Ethereum, emphasizing transaction speed and low cost.