What is Blockchain

The important core technique is “Decentralization”.
Let’s talk more details about blockchain.

Features

▮ Decentralization

Think about this: traditionally, transactions, involving money, credit and similar operations must go through a centralized organization.
However, the concept of decentralization aims to change this approach. You might be wondering why centralization is considered problematic and what benefits decentralization offers. To find out more, keep reading.

▮ Transparency

Every operation on the blockchain is discoverable by anyone. I know that might should like a crazy idea, and you might not immediately trust this system within your institution.

▮ Efficiency

The blockchain shifts how transactions are handled to a peer-to-peer model. This means you can directly send money to anyone you wish without needing a central organization. This represents significant progress that saves a lot of time.

▮ Trust-Minimized

However, without a central organization handling transactions, you might wonder how to verify if a transaction is successful. This assurance relies on the entire network, blockchain mechanisms, and smart contracts.

Bitcoin and Etherum

Bitcoin, created by Satoshi Nakamoto, was the world's first cryptocurrency.
Vitalik Buterin then brought about a significant change that impacted the entire blockchain ecosystem: Smart Contracts. While he didn't initially propose the idea, he was instrumental in bringing this concept to life on the blockchain.

So, what exactly is a smart contract?

Prior to smart contracts, cryptocurrencies could only facilitate basic transactions. Smart contracts introduced the groundbreaking ability to attach scripts to these transactions. Imagine being able to write code directly into a transaction – it's incredibly powerful!

Smart contracts inherit the core benefits of blockchain technology:

• Immutable
• Decentralized
• Transparent
• Tamper-proof

This means transactions can be executed via a script. After rigorous auditing, the script becomes highly trustworthy, embodying the "trust-minimized" principle I mentioned earlier. However, this relies on the crucial premise that the code has no vulnerabilities, as it cannot be tampered with once deployed.