Blockchain

Unit 3 • Chapter 1

Blockchain Security Fundamentals

Summary

Ever wonder if there's an easier way to complete transactions without online wallets, banks, or third-party apps? Blockchain makes this possible by using cryptocurrencies like Bitcoin. Blockchain is a technology that allows for secure and transparent transactions by creating a chain of blocks containing transaction details. These blocks are linked together in a ledger shared among users, creating a public distributed ledger. Cryptocurrencies like Bitcoin are immune to counterfeiting, do not require a central authority, and are protected by encryption. Transactions are secure because all users have a copy of the ledger, ensuring transparency and preventing invalid transactions. This decentralized system eliminates the need for intermediaries like banks and provides a reliable method for peer-to-peer transactions.

Concept Check

What technology is credited for the birth of cryptocurrencies?

What feature of blockchain prevents counterfeiting of cryptocurrencies?