Blockchain Basics: Understanding the Fundamentals of Decentralized Ledgers
A blockchain network is a decentralized network of nodes that participate in the verification and validation of transactions. A node is a computer or device that stores a copy of the blockchain and performs certain actions, such as validating transactions and adding new blocks to the chain. Each node in a blockchain network is equal, and there is no central authority controlling the network.
In a blockchain network, transactions are grouped into blocks and added to the chain. Each block contains a set of transactions, a timestamp, a unique identifier, and a reference to the previous block in the chain. This creates an unbreakable chain of blocks that holds a record of all the transactions that have ever occurred on the network.
One of the key features of a blockchain network is its consensus mechanism. Consensus is the process by which nodes in the network agree on the validity of transactions and the order in which they are added to the chain. There are several different consensus mechanisms, including proof of work (PoW), proof of stake (PoS), and delegated proof of stake (DPoS).
Another important aspect of blockchain networks is their security. Because each block in the chain contains a reference to the previous block, any attempt to alter a block would invalidate all subsequent blocks in the chain. This makes it virtually impossible to tamper with the blockchain without being detected.
Finally, blockchain networks can be public or private. Public blockchains, like Bitcoin and Ethereum, are open to anyone and allow anyone to participate in the network. Private blockchains, on the other hand, are restricted to a specific group of users and are typically used for enterprise applications.
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