Understanding Blockchain Technology

https://www.professormesser.com/security-plus/sy0-701/sy0-701-video/blockchain-technology-sy0-701/

What is Blockchain?

Blockchain technology is often described as a distributed ledger—a publicly available record that tracks transactions. One key characteristic of the blockchain is that every participant in the network maintains a copy of this ledger. Once changes are recorded, they are distributed to all participants who maintain a copy.

Uses of Blockchain

Blockchain can be used in any situation that requires tracking transactions, such as:

• Payment Processing – Sending and receiving digital currency (e.g., Bitcoin).
• Digital Identification – Verifying identities securely.
• Supply Chain Monitoring – Tracking the movement of goods.
• Digital Voting – Ensuring transparency and security in elections.

How Blockchain Transactions Work

1. Initiating a Transaction – A transaction is created, such as transferring Bitcoin, tracking a data backup, or transferring a house title.
2. Broadcasting the Transaction – Instead of sending transaction details to a single entity, the information is shared with all participants in the blockchain network.
3. Adding the Transaction to a Block – The transaction is grouped with others to form a block.
4. Securing the Block with a Hash – A hash is added to the block to ensure data integrity. Every copy of the blockchain receives the new block.

Ensuring Blockchain Integrity

The hash serves as a security mechanism. If anyone attempts to alter a transaction, the hash becomes invalid.

When other devices in the blockchain detect an invalid hash, they reject the modified block, preventing tampering.

The Future of Blockchain

Blockchain technology is already being applied in cryptocurrency and other industries. As its capabilities continue to expand, we can expect even more innovative uses in the future.