Unit 1 Blockchain-1
Unit 1 Blockchain-1
Unit 1 Blockchain-1
• Security: With data distributed across multiple locations, ensuring data security
and access control becomes more challenging, as potential vulnerabilities and
attack vectors increase.
History:
2. Bitcoin, the first blockchain-based cryptocurrency, was launched in 2009 and served
as the initial practical implementation of blockchain technology.
Definition:
2. It is essentially a continuously growing list of records, called blocks, which are linked
and secured using cryptography.
3. Each block contains a cryptographic hash of the previous block, a timestamp, and
transaction data, forming an immutable and tamper-evident chain.
Distributed Ledger:
2. It allows for transparent and secure record-keeping without the need for a central
authority or intermediary.
3. Participants in the network can access, verify, and update the ledger through a
consensus mechanism.
Blockchain Categories:
• Public Blockchain:
• Public blockchains are open and permissionless, allowing anyone to join the
network, participate in the consensus process, and access the full transaction
history.
• Examples: Bitcoin, Ethereum.
• Private Blockchain:
• Private blockchains are permissioned and controlled by a single organization or
entity.
• Access to the network and the ability to participate in the consensus process are
restricted.
• Private blockchains offer enhanced privacy and control but sacrifice the
decentralized nature of public blockchains.
• Consortium Blockchain:
• Consortium blockchains are semi-decentralized and governed by a group of
organizations or entities.
• The consensus process is controlled by a pre-selected set of nodes or validators.
• Consortium blockchains strike a balance between decentralization and control,
often used in enterprise or industry-specific applications.
• Peer-to-Peer Network:
• Blockchain networks operate on a peer-to-peer (P2P) architecture, where nodes
communicate directly with each other without a central server or intermediary.
• This decentralized architecture enhances resilience, as the network can
continue functioning even if some nodes fail or leave the network.
• Peer-to-peer networks enable the propagation of transactions and blocks across
the network in a distributed manner.
Mining Mechanism:
Types of Blockchain: