BLOCKCHAIN
Simplified Explanation
Future Technology
WHAT IS BLOCKCHAIN
blockchain is a digital technology that uses a chain of blocks to store transaction information securely and transparently, making it nearly impossible to alter or falsify data.
THE ROLE OF LEDGER IN BLOCKCHAIN
A ledger in the context of blockchain refers to a distributed and decentralized digital record of all transactions across the network. It is a fundamental component of blockchain technology, where each transaction is recorded as a block and linked together in a chronological chain. This ledger is maintained and validated by multiple participants (nodes) in the network, ensuring transparency, immutability, and security of the recorded data. As new transactions are added, the ledger updates and remains consistent across all nodes in the blockchain network.
BLOCKCHAIN LEDGER
Blockchain is a decentralized system, with data stored across a network of computers. It ensures data integrity through cryptographic algorithms, making it nearly impossible to alter once recorded. Transactions are transparent and verified through consensus mechanisms. In contrast, traditional ledgers are centralized, potentially vulnerable to tampering and reliant on a trusted authority.
ADVANTAGE & DISADVANTAGE OF BLOCKCHAIN
ADVANTAGE DISADVANTAGE BLOCKCHAIN
Decentralization
More secure Transparency
Immutable Efficiency
Trust
Consumes a lot of energy
Limited privacy
Complex algorithms
High set-up cost
Ineffective
TYPES OF BLOCKCHAIN
There are 3 Types of Blockchain
Public Blockchain
Private Blockchain
Consortium Blockchain
PUBLIC BLOCKCHAIN
Public blockchains are open and permissionless networks where anyone can participate as a node. They allow anyone to read, write, and verify transactions. Examples include Bitcoin and Ethereum. These blockchains offer high transparency but might have slower transaction speeds due to their open nature.
PRIVATE BLOCKCHAIN
Private blockchains are permissioned networks where only selected entities or participants have access to the blockchain. These entities typically have known identities and are authorized to participate in the network. Private blockchains are often used by organizations for internal purposes and can offer faster transaction speeds and higher privacy.
CONSORTIUM BLOCKCHAIN
Consortium blockchains are a hybrid between public and private blockchains. They are controlled by a group of pre-selected organizations or nodes, offering a more decentralized approach than private blockchains while still maintaining restricted access. Consortium blockchains are often used in industries where multiple organizations collaborate on shared processes and data.
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