Business,Operations,Guide,Module 1

Module 1.1

Blockchain Technology

A blockchain is a type of distributed digital ledger that records transactions across many computers so that the record cannot be easily altered retroactively. In a traditional system, a single authority (for example, a bank) maintains a private ledger of transactions. By contrast, a blockchain’s ledger is shared and synchronized among a network of participants, all of whom collectively verify and agree on updates (this agreement process is called consensus).

This structure removes the need for a central middleman. You can think of it as a digital account ledger that everyone has a copy of, where entries, once agreed upon, become virtually permanent. In legacy terms, if a traditional ledger is like a book kept by one accountant, a blockchain is like many accountants each keeping an identical book and cross-checking each other’s work automatically. This makes the system resilient to fraud, where one cannot simply change a past entry in one book without everyone else noticing the discrepancy.

Key characteristics of public blockchains:

Immutability:

Once data (transactions) is recorded and confirmed in a block, it’s extremely difficult to change. This is analogous to transactions written in ink on a ledger, making tampering obvious.

Transparency:

All transactions on public blockchains are visible to anyone with access to the network. This is like having a public audit log that anyone can inspect.

Decentralization:

Control of the network is not in the hands of a single entity. Decisions are made by protocol rules and consensus of participants, rather than a central authority, reducing single points of failure.

Module 1.2 -- Bitcoin - Cryptocurrency Basics