What is blockchain
Introduce you to the definition, origin and importance of blockchain.
Introduction
Blockchain is an open, real-time shared distributed database that records all operations performed by users and updates them to all nodes on the network. All these operations are combined into a secure, immutable chain.
Blockchain is a distributed ledger
Blockchain is a distributed ledger technology that reduces the cost of trust by recording and verifying transactions initiated by anyone without a central authority or third party.
Blockchain ensures that two or more parties can transfer digital assets in a secure manner in any transaction. Once the transaction is completed, it is recorded in the blockchain and cannot be tampered with. Moreover, the record can then be accessed publicly by other participants of the network. These completed transactions will be recorded in what is defined as a “block”. All blocks are connected into a chain, which is what we call “blockchain”.
Each block contains the encrypted hash, timestamp and transaction data of the previous block. Therefore, it is barely possible to modify data already stored in the blockchain, making the data more secure and transparent.
But this does not mean that the blockchain is a 100% secure technology. Theoretically, if someone controls the authority of verifying data and initiates an unreasonable transaction and has it verified, it would be a threat to the security of the blockchain. The prerequisite for this to happen is that the attackers control more than 51% of the network’s computing power, that is, a 51% attack.
Given the scale of current mainstream blockchains, it is very difficult to conduct a 51% attack as it is highly expensive to commit malicious behaviors.
The origin of blockchain
Blockchain technology was first introduced in the white paper “Bitcoin: A Peer-to-Peer Electronic Cash System” in 2008 by the mysterious figure Satoshi Nakamoto, creator of Bitcoin. Generally, Bitcoin is a project based on blockchain technology, but Bitcoin and blockchain are not the same.
Bitcoin is the original blockchain
The first blockchain network, the Bitcoin Network, was established in 2009. It enables peer-to-peer value exchange between users without any third parties.
After Bitcoin was launched, many other projects followed suit and created their own unique blockchains, aiming to improve inefficient value transfer in an innovative way. In this movement, the most critical technology that emerged is the “smart contract”.
Smart Contract Unlocks More Potentials of the Blockchain
The most typical smart contract is the one developed by Ethereum, the second-largest cryptocurrency project by market capitalization. In simple terms, smart contracts are lines of code that operate on the blockchain. They can run permanently after setting specific rules and being deployed to blockchains.
Smart contracts can be used in a variety of ways, such as issuing tokens, creating wallets, establishing decentralized exchanges, etc. But at present, blockchain technology is still limited by the tradeoff between scalability and security. It is unlikely to see applications, within a short period of time, being truly implemented and providing everyday services.
However, due to smart contracts, the blockchain ecosystem has indeed enabled many things that were difficult to achieve with the original technology, such as decentralized finance (DeFi), non-fungible tokens (NFTs), GameFi, etc. All of these have facilitated the blockchain to be recognized by more people.
Why does blockchain technology matter?
Having developed a basic understanding of the definition, origin and related concepts of blockchain technology, let’s move to the next part - the importance of the blockchain.
Change the way that data is stored
Blockchain has revolutionized the way data is stored, shared and managed. This is because blockchain is a more secure, transparent, and immutable distributed database theoretically, allowing for peer-to-peer data transmission without the trust of a third party. Benefiting from these characteristics, blockchain is widely used in finance, games, digital identity, and other fields.
Application Scenarios with Huge Potential
The technical feature of blockchain unlocks possibilities of more real-world scenarios, such as decentralized applications (DApps), non-fungible tokens (NFTs), and digital identities (DIDs) that are built based on smart contracts.
In addition, blockchain technology also enables faster, safer, and more cost-effective transactions and data sharing between different parties, which is likely to revolutionize the way we process and share data today.
Key takeaways
Blockchain is an open, shared database. It can be regarded as a public ledger, allowing everyone to complete transactions without a third party.
Data is recorded in a “block” structure. All blocks are linked together to form a blockchain.
Bitcoin, established in 2009, was the first blockchain network.
Blockchain has changed the way we store data, bringing more innovative technologies and application scenarios, such as DApp, DeFi, NFTs, etc.
Main video
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Lección 1:What is blockchain
Lección 2:How does Blockchain Work?
Lección 3:Blockchain trilemma : scalability, decentralization, security
Lección 4:Types of Blockchain
Lección 5:The Security of Blockchain
Lección 6:Revolutionary applications and innovative scenarios
What is blockchain
Introduce you to the definition, origin and importance of blockchain.
Introduction
Blockchain is an open, real-time shared distributed database that records all operations performed by users and updates them to all nodes on the network. All these operations are combined into a secure, immutable chain.
Blockchain is a distributed ledger
Blockchain is a distributed ledger technology that reduces the cost of trust by recording and verifying transactions initiated by anyone without a central authority or third party.
Blockchain ensures that two or more parties can transfer digital assets in a secure manner in any transaction. Once the transaction is completed, it is recorded in the blockchain and cannot be tampered with. Moreover, the record can then be accessed publicly by other participants of the network. These completed transactions will be recorded in what is defined as a “block”. All blocks are connected into a chain, which is what we call “blockchain”.
Each block contains the encrypted hash, timestamp and transaction data of the previous block. Therefore, it is barely possible to modify data already stored in the blockchain, making the data more secure and transparent.
But this does not mean that the blockchain is a 100% secure technology. Theoretically, if someone controls the authority of verifying data and initiates an unreasonable transaction and has it verified, it would be a threat to the security of the blockchain. The prerequisite for this to happen is that the attackers control more than 51% of the network’s computing power, that is, a 51% attack.
Given the scale of current mainstream blockchains, it is very difficult to conduct a 51% attack as it is highly expensive to commit malicious behaviors.
The origin of blockchain
Blockchain technology was first introduced in the white paper “Bitcoin: A Peer-to-Peer Electronic Cash System” in 2008 by the mysterious figure Satoshi Nakamoto, creator of Bitcoin. Generally, Bitcoin is a project based on blockchain technology, but Bitcoin and blockchain are not the same.
Bitcoin is the original blockchain
The first blockchain network, the Bitcoin Network, was established in 2009. It enables peer-to-peer value exchange between users without any third parties.
After Bitcoin was launched, many other projects followed suit and created their own unique blockchains, aiming to improve inefficient value transfer in an innovative way. In this movement, the most critical technology that emerged is the “smart contract”.
Smart Contract Unlocks More Potentials of the Blockchain
The most typical smart contract is the one developed by Ethereum, the second-largest cryptocurrency project by market capitalization. In simple terms, smart contracts are lines of code that operate on the blockchain. They can run permanently after setting specific rules and being deployed to blockchains.
Smart contracts can be used in a variety of ways, such as issuing tokens, creating wallets, establishing decentralized exchanges, etc. But at present, blockchain technology is still limited by the tradeoff between scalability and security. It is unlikely to see applications, within a short period of time, being truly implemented and providing everyday services.
However, due to smart contracts, the blockchain ecosystem has indeed enabled many things that were difficult to achieve with the original technology, such as decentralized finance (DeFi), non-fungible tokens (NFTs), GameFi, etc. All of these have facilitated the blockchain to be recognized by more people.
Why does blockchain technology matter?
Having developed a basic understanding of the definition, origin and related concepts of blockchain technology, let’s move to the next part - the importance of the blockchain.
Change the way that data is stored
Blockchain has revolutionized the way data is stored, shared and managed. This is because blockchain is a more secure, transparent, and immutable distributed database theoretically, allowing for peer-to-peer data transmission without the trust of a third party. Benefiting from these characteristics, blockchain is widely used in finance, games, digital identity, and other fields.
Application Scenarios with Huge Potential
The technical feature of blockchain unlocks possibilities of more real-world scenarios, such as decentralized applications (DApps), non-fungible tokens (NFTs), and digital identities (DIDs) that are built based on smart contracts.
In addition, blockchain technology also enables faster, safer, and more cost-effective transactions and data sharing between different parties, which is likely to revolutionize the way we process and share data today.
Key takeaways
Blockchain is an open, shared database. It can be regarded as a public ledger, allowing everyone to complete transactions without a third party.
Data is recorded in a “block” structure. All blocks are linked together to form a blockchain.
Bitcoin, established in 2009, was the first blockchain network.
Blockchain has changed the way we store data, bringing more innovative technologies and application scenarios, such as DApp, DeFi, NFTs, etc.
Main video
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