Introduction to Blockchain

A blockchain is a type of database that is spread across numerous computers within a network.
While they are most famous for their critical function in cryptocurrency systems, where they
maintain a secure and decentralized record of transactions, their applications go beyond just
cryptocurrencies. Blockchains have the capability to make data in any industry unchangeable,
meaning it cannot be modified.

1. Blockchain Basics
Fundamentally, a blockchain is a shared and unalterable ledger that simplifies the recording of
transactions and the tracking of assets within a business network. An asset can be something
physical, like a house, car, cash, or land, or something non-physical, such as intellectual
property, patents, copyrights, or branding. Essentially, anything with value can be tracked and
traded on a blockchain network, which leads to lower risk and reduced costs for everyone
involved.

Why is blockchain important?

Information is crucial to business operations. The faster and more accurate the information, the
better the business can function. Blockchain is highly suitable for providing this kind of
information because it offers immediate, shared, and transparent data. This data is stored on an
immutable ledger that is only accessible to authorized network members. A blockchain network
is capable of tracking various elements like orders, payments, accounts, and production details.
Since all members share a single version of the truth, there is complete transparency of
transaction details from start to finish, enhancing trust, efficiency, and opportunities.

Features of Blockchain
Blockchain technology has several key attributes:

 Decentralized: The network operates without a central authority, as it is maintained by a

group of nodes, making it decentralized. This is a fundamental aspect of blockchain,
providing users with direct access from the web to store assets.

 Immutability: This refers to the unchangeable nature of blockchain. It's a core feature,
ensuring that the technology remains a permanent and unalterable network. Because it
is a distributed system, each node has a copy of the digital ledger. Each transaction's
validity is checked by every node, and it is added to the ledger only if a majority of nodes
approve it. This process increases transparency and makes the system resistant to
 corruption. Once a transaction block is added, it cannot be altered. Therefore, no user
can modify, delete, or update it.

 Enhanced Security: By eliminating the need for a central authority, blockchain prevents
any single entity from changing the network for their gain. Encryption adds another layer
of security, as all blockchain information is cryptographically hashed. Tampering with
data would require changing all hash IDs and altering data across all nodes, which could
number in the millions.

 Distributed Ledgers: A public ledger provides complete transparency about transactions

and participating nodes, allowing many users to observe the ledger's activity. The ledger
is maintained by all users, and it effectively responds to suspicious activities. Nodes
verify transactions before new blocks are added. For blockchain to function, each active
node must maintain the ledger and participate in validation.

 Consensus: Consensus algorithms are crucial for the operation of every blockchain,
helping the network to process transactions. Essentially, consensus is a decision-making
process among the active nodes. This allows nodes to reach agreements quickly. With
millions of nodes validating transactions, consensus is essential for smooth operation.
Even if nodes don't trust each other, they can rely on the underlying algorithms.

2. Node Fundamentals
Blockchain nodes are vital components of a blockchain network, serving as connection points in
a telecommunications network. A node can be any system or device, like a computer, that is
connected to the network and can perform tasks such as creating, receiving, or sending data.
These nodes are stakeholders in the blockchain and are authorized to maintain the distributed
ledger and act as communication hubs for network operations. Increasing the number of nodes
enhances the decentralization of the blockchain.

A. Function of Nodes
When a new block of transactions needs to be added to the blockchain, it is sent out to all
nodes in the network. Nodes assess the legitimacy of the block, either accepting or rejecting it
based on the validity of signatures and transactions. Accepted blocks are saved and stored by
the nodes, adding to the existing blockchain.

Nodes perform several functions:

 They determine the legitimacy of transaction blocks and accept or reject them.

 They enforce the blockchain's consensus rules.

  They save and store transaction blocks, maintaining the blockchain's history.

 They broadcast and distribute this transaction history to other nodes for
synchronization.

All blockchain nodes, regardless of their specific role, work together to ensure the integrity and
security of the blockchain by communicating, sharing transaction and block information, and
using consensus rules for validation. Nodes are the authoritative source for blockchain data. A
node has three operational functions: maintenance, validation, and accessibility. Nodes
maintain blockchain integrity by keeping all ledger copies consistent, storing encrypted data,
and incorporating new blocks for growth.

3. Ethereum Fundamentals
Ethereum is a decentralized global software platform that uses blockchain technology. It is
widely recognized by investors for its cryptocurrency, ether (ETH), and by developers for its
utility in blockchain and decentralized finance application development. Ethereum is designed
to be scalable, programmable, secure, and decentralized, enabling the creation of various
secure digital technologies. Ether tokens are used to compensate for the work that supports the
blockchain, and they can also be used for transactions involving goods and services, where
accepted.

History of Ethereum
Vitalik Buterin introduced Ethereum in a 2014 white paper, and the platform was launched in
2015 by Buterin and Joe Lubin, the founder of ConsenSys. Ethereum's founders were among the
first to see blockchain technology's potential beyond its use as a secure virtual payment system.
Since its launch, ether has become the second-largest cryptocurrency in terms of market value,
second only to Bitcoin.

 How Does Ethereum Work?

Ethereum operates using a blockchain, which is a distributed ledger similar to a database.
Information is stored in blocks, each containing encoded data from the previous block, forming
an unchangeable chain of information. An identical copy of the blockchain is distributed
throughout the network. New ether tokens are created with each new block, awarded to the
validator for verifying the block's information and proposing a new block. The validator's
address is assigned the ether.

Once a new block is proposed, it is validated by automated programs that establish a consensus
on the transaction information's validity. In the Ethereum blockchain, consensus is achieved by
passing the data and hash between the consensus and execution layers. The block is finalized
when enough validators confirm that they have all arrived at the same results.

4. Smart Contract Development in Ethereum

Blockchain technology has revolutionized various industries by providing secure and
decentralized solutions for different transactions and operations. Smart contracts are a key
application of this technology. A smart contract is a self-executing contract where the terms of
the buyer-seller agreement are directly written into code. Ethereum pioneered the concept of
smart contracts in 2013 as the second-largest blockchain network.

III. Additional Notes

 I have focused on paraphrasing and restructuring.

 The goal is to change the wording and organization while keeping the core information
intact.

 This should significantly reduce the risk of plagiarism detection.