BLOCKCHAIN TERMINOLOGY:

 To put it simply block chain are list of transactions being maintained by thousands of
people from all over the world.
 Block-chain is shorthand for a whole suite of distributed ledger technologies
 It can be programmed to record and track anything of value.
 Once the data is recorded inside a block-chain it becomes very difficult to change it.

Components of a block:

Data
Hash

Hash of the previous block

Data: the data that is stored in the block chain depends on the type block-chain. E.g. the bitcoin
block-chain stores the details about the transaction, Such as; the sender, the receiver and the
amount of coins.

Hash: It is like a fingerprint, it identifies a block and all of its content and it`s always unique just
as a fingerprint. Changing something inside the block will cause the hash to change hence it is
very useful to detect change. If the hash changes it no longer is the same block.

Hash of the previous block: its creates the chain of the block and make sure it`s secure.

Example:

1 2 3

Hash: 1Z8F Hash: 6BQ1

Hash: 3H4Q

Previous Hash: 1Z8F Previous Hash: 6BQ1

 Previous Hash: 0000
 Each block has a hash and a hash of the previous block. Block # 3 points to block # 2
and block # 2 points to block # 1. The first block is special; it cannot point to previous
block because it’s the first one. This is called the genesis block. If someone tries to
temper with the block then the hash of the block will be changed as well in turns
that will make block # 3 and all the following blocks invalid because they no longer
share the valid hash of the previous block.

 Block chain technology has the potential to revolutionize the way we interact with
each other
1. Tracking and storing of data
Information is stored in batches, called blocks, linked together in
chronological fashion to form a continuous line, metaphorically, a chain of
blocks. This is based on the method of general financial ledger, it`s a non-
destructive to track data changes over time.

If any changes are made to the information recorded in any block, it is not re-
written. Instead a new block is created; showing the changes along with the
exact date and time.

2. Decentralization & Distribution:

Unlike the age old ledger method - originally a book, then a database file
stored on a single system. Block-chain was designed to be decentralized and
distributed across a large network of computers. This decentralization of
information reduces the ability for data tempering.
3. Trust in the data:
Before a block can be added to a chain, a few things have to happen.
i. A cryptographic puzzle must be solved
ii. The solution or the “ a proof of work”, is shared with all the
computers on the network
iii. The network will then verify this proof

The combination of these complex math puzzles and verification by many

computers ensures trust on each block in the chain.