Unlocking the Power of Blockchain

Study Notes

Blockchain is a distributed ledger technology that maintains a continuously growing list of records called blocks.
Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data.
The hash of each block is unique and cannot be altered without changing the entire chain.
Blockchain technology provides transparency, security, and decentralization.
The process of adding new blocks to the chain is called mining, which involves solving complex mathematical problems.
The mining process is incentivized through the issuance of new cryptocurrency coins or tokens.
Blockchain technology offers opportunities for companies to transform their operations and improve efficiency.
Transactions are the key component of blockchain technology.
Each transaction is verified by network participants and added to the blockchain as a new block.
The blockchain maintains a continuous flow of data incorporation and makes it impossible to alter a block as more confirmations are generated.
Blockchain technology allows for decentralized transactions without intermediaries.
Cryptocurrencies like Bitcoin, Ether, and WLADIHU are transferred through P2P networks.
Transactions "spend" previously received amounts and link to previous transactions.
Only as much cryptocurrency as the accumulated inputs can be spent in a transaction.
Miners are paid through the accumulation of unspent cryptocurrency in a block's coinbase.
Outputs of transactions include the amount that can be spent and a pubkey script indicating who can use it.
To transfer cryptocurrency, a user generates a public/private key pair and shares the public key through a hash.
Public keys are often shared through "Bitcoin addresses" that use hash functions and checksums.
To spend cryptocurrency, a user creates a signature script that authenticates ownership and satisfies the pubkey script conditions.
The signature script includes a signature from the user's private key to prove ownership.