How Blockchain Works

Understanding the fundamentals of blockchain technology

What is a Blockchain?

• A distributed ledger technology
• A chain of cryptographically linked blocks
• Decentralized and immutable
• Maintains a chronological record of transactions
• No single point of failure or control

Structure of a Block

How Blocks Form a Chain

Cryptographic Hashing

• A one-way function
• Variable-size input → fixed-size output
• Deterministic: same input = same output
• Avalanche effect: a small change = a completely different hash

Consensus Mechanisms

Smart Contracts

• Self-executing code on the blockchain
• Conditions defined in the code
• Automatic and immutable execution
• No intermediaries required

if (payment_received == true) {
    transfer_ownership();
    release_funds();
}

Decentralized Finance (DeFi)

• Financial services without traditional institutions
• Decentralized lending, borrowing and exchanges
• Governed by smart contracts
• Accessible 24/7, globally

Advantages of Blockchain

• Security: advanced cryptography
• Decentralization: no single point of control
• Transparency: every transaction is visible
• Immutability: data cannot be altered

Blockchain Use Cases

• Cryptocurrencies: Bitcoin, Ethereum
• Supply chain: product traceability
• Digital identity: secure verification
• Electronic voting: transparent elections
• Intellectual property: proof of priority
• Real estate: land registries

Thank you!

Questions?