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blockchain core

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  1. Decentralization:
    • Nodes:
      • A blockchain consists of a network of nodes, which are individual computers or devices participating in the network.
      • Each node has a copy of the entire blockchain ledger.
      • Decentralization eliminates the need for a central authority and makes the system more resistant to censorship and tampering.
  2. Blocks:
    • Data Structure:
      • The blockchain ledger is organized into blocks, each containing a list of transactions.
      • Blocks are linked together in chronological order, forming a chain.
  3. Consensus Mechanism:
    • Agreement on Transactions:
      • To ensure the integrity of the ledger, nodes in the network must agree on the validity of transactions.
      • Different consensus mechanisms (e.g., Proof of Work, Proof of Stake) are used to achieve this agreement.
  4. Cryptography:
    • Hash Functions:
      • Blocks are linked using cryptographic hashes. Each block contains the hash of the previous block, creating a secure and tamper-resistant chain.
    • Digital Signatures:
      • Transactions are secured using digital signatures, providing authentication and ensuring that only the authorized party can make changes.
  5. Smart Contracts:
    • Self-executing Code:
      • Smart contracts are programmable scripts that automatically execute predefined actions when specific conditions are met.
      • They are stored on the blockchain and can facilitate complex transactions without the need for intermediaries.
  6. Immutable Ledger:
    • Tamper-Resistance:
      • Once a block is added to the blockchain, it is extremely difficult to alter.
      • The immutability of the ledger ensures a reliable and unchangeable history of transactions.
  7. Distributed Ledger Technology (DLT):
    • Data Distribution:
      • The ledger is distributed across all nodes in the network, ensuring redundancy and reducing the risk of a single point of failure.
      • Each node has an identical copy of the ledger, promoting transparency.
  8. Network Consistency:
    • Synchronization:
      • Nodes communicate and synchronize to ensure that all copies of the ledger are consistent.
      • Any differences or conflicts are resolved through the consensus mechanism.
  9. Incentive Mechanisms:
    • Mining (Proof of Work):
      • In some blockchain systems, participants (miners) are rewarded for validating transactions and adding blocks to the chain.
      • Incentive mechanisms help maintain the security and integrity of the network.