Understanding the fundamental building blocks of blockchain technology
By the end of this session, you will be able to:
Blockchain is a distributed ledger technology that maintains a continuously growing list of records (blocks) that are linked and secured using cryptography.
Think of blockchain as a digital ledger book that is:
A block is a container that holds a collection of transactions. Each block contains:
The chain is formed by linking blocks together using cryptographic hashes. Each block references the hash of the previous block, creating an unbreakable chain.
Why is this important? If someone tries to alter a block, its hash changes, breaking the chain and alerting the network to tampering.
Nodes are individual computers that participate in the blockchain network. Types include:
Imagine a classroom where students maintain identical notebooks:
Open to everyone, fully decentralized
Example: Bitcoin, EthereumRestricted access, controlled by organization
Example: Enterprise solutionsSemi-decentralized, controlled by group
Example: Banking consortiumsOnce data is recorded in a block and confirmed by the network, it becomes extremely difficult to alter or delete.
All transactions are visible to network participants, creating accountability and trust.
No single point of control; network is maintained by distributed nodes.
Network participants must agree on the validity of transactions before they're added.
Ready to test your understanding? Take our comprehensive interactive quiz with multiple question types!
15 minutes
5 questions
Pass: 70%
In the next session, we'll explore the Design Principles that make blockchain technology unique, including immutability, transparency, and trustlessness.