📋Overview
Let's dive into the fundamentals of blockchain. In "Blockchain Basics" we explain the basics of nodes, networks, protocols, and smart contracts.
Last updated
Let's dive into the fundamentals of blockchain. In "Blockchain Basics" we explain the basics of nodes, networks, protocols, and smart contracts.
Last updated
Blockchain is a digital system that enables secure and transparent transactions. It works like a digital ledger, where each transaction is recorded in a block of data that is linked to the previous one using cryptography. Because the ledger is distributed across a network of devices such as computers, laptops, and servers called nodes, no single entity controls the information, making it transparent and resistant to tampering.
Check out the following section to learn more about the different blockchain networks:
At its core, blockchain is made up of three essential components: a distributed ledger, cryptography, and a consensus mechanism. Together, these core components form the foundation of blockchain technology and enable its many unique features, including immutability, transparency, and security.
Distributed ledger: A distributed ledger is a digital record of transactions that is shared across a network of computers. In the case of blockchain technology, the ledger is decentralized, meaning that it is not controlled by a single entity. Instead, it is maintained by a network of nodes that work together to validate and record transactions.
Cryptography: Cryptography is the technique used to secure and protect the information on the blockchain. It uses complex algorithms to ensure that the transactions are valid, and that the information is tamper-proof and secure. Once a transaction is added to the blockchain, the cryptographic hash function ensures that it cannot be modified or tampered with without detection.
Consensus mechanism: The consensus mechanism is the process by which the nodes in the network agree on the validity of the transactions. It is the mechanism that ensures that the distributed ledger is accurate and that the transactions are valid. There are several different consensus mechanisms used in blockchain technology, such as Proof of Work (PoW), Proof of Stake (PoS), and Delegated Proof of Stake (DPoS).
Tip: Not sure where to start? Check out our easy-to-follow User Guides to get step by step instructions on how to use the FlexSmart platform.
A blockchain network is made up of computers (nodes) that work together to maintain a digital ledger of transactions. Each computer in the network has a copy of the same ledger, which means that all of the participants have access to the same information. When a new transaction is added to the ledger, it is broadcast to all of the computers in the network. Each computer then checks to make sure the transaction is valid, and if it is, adds it to the ledger. Once the transaction is added to the ledger, it cannot be changed or deleted, which means that the information is permanent and secure.
Because the network is decentralized, meaning there is no central authority, it is difficult for anyone to manipulate or corrupt the ledger. This makes blockchain ideal for financial transactions, supply chain management, and digital identity verification.
Check out the following section to learn more about the different blockchain networks:
Blockchain Process
1. New data (e.q. a transaction) is entered into the blockchain.
2. A block representing that data is created.
3. The block is broadcast to all the nodes in the blockchain network.
4. Each node (participant) chooses to approve or deny the new block.
5. If approved, the new block is added to the chain permanently.
Get Started: Use the FlexSmart platform to begin exploring blockchain today.