🚀 Crypto Encyclopedia

Blockchain Technology

How blockchain works

Blockchain is a distributed, immutable ledger that records transactions across a network of computers. It is the foundational technology behind cryptocurrencies.

🔗 Key Concept: Each block contains a cryptographic hash of the previous block, forming an unbreakable chain.

How Blockchain Works

Transaction is initiated by a user
Transaction is broadcast to the network
Network nodes validate the transaction
Transaction is grouped with others into a block
Block is added to the chain (immutable)
Transaction is complete and recorded

Types of Blockchains

Type	Description	Examples
Public	Open to everyone	Bitcoin, Ethereum
Private	Permissioned access	Hyperledger, R3 Corda
Consortium	Group-controlled	Quorum, Energy Web
Hybrid	Combination	XRP Ledger

Key Blockchain Features

Decentralized No single point of failure
Immutable Records cannot be altered
Transparent All transactions are visible
Secure Cryptography ensures integrity

Blockchain Use Cases

Finance: Cryptocurrencies, payments
Supply Chain: Tracking goods
Healthcare: Patient records
Voting: Secure elections
Identity: Digital ID verification
Real Estate: Property records

Blockchain Scalability Solutions

Layer 1: Upgrading base protocol (Ethereum 2.0)
Layer 2: Rollups (Arbitrum, Optimism)
Sharding: Splitting the network
Sidechains: Separate blockchains