Crypto 101 and a bit more
Tags: business, crypto, bitcoin, blockchain
Published: 2023-01-06 18:49:18

---
title: Crypto 101 and a bit more
published: true
date: 2022-09-23 20:37:32 UTC
tags: Business,Crypto,bitcoin,blockchain
canonical_url: https://greenido.wordpress.com/2022/09/23/crypto-101-and-a-bit-more/
---

What is a blockchain?  
Why is cryptocurrency the future of the finance world?  
Below you can find a deck I was preparing for a lighting talk at [ESGgo](https://esggo.com).  
Since I got some positive feedback on it, I wanted to share it broadly.  
Hopefully, you will find it valuable.

## What is a blockchain?

- A blockchain is a chain of blocks that contains information.
  - A block – a list of records/transactions/smart contracts.
  - When a block is complete, it’s added to the network.
- It is a digital ledger of transactions duplicated and distributed across the entire network (peer-to-peer).
- While any conventional database can store this information, blockchain is unique because it’s  **decentralized**. In other words, many identical copies of a blockchain ledger are stored on multiple computers spread out across a network. 
- These individual computers are called nodes.
- A blockchain is a distributed digital ledger that stores data of any kind. A blockchain can record information about cryptocurrency transactions, NFT ownership, or Defi smart contracts.

## Characteristics of a blockchain

### **Immutable**

Immutability means that the blockchain is a permanent and unalterable network. 

**A collection of nodes**

- Every node in the network has a copy of the digital ledger. 
- To add a transaction, every node checks the transaction’s validity, and if the majority of the nodes think it is a valid transaction, then it is added to the network. 
- Without the approval of most nodes, no one can add any transaction blocks to the ledger. 
- Any validated records are irreversible and  **cannot be changed. **

### **Decentralized**

- The blockchain network is decentralized, meaning  **no central governing ** authority will be responsible for all the decisions. 
- A group of nodes makes and maintain the network. 

### **Secure**

- All the records in the blockchain are individually encrypted, which adds another layer of security.
- No central authority – BUT  **no one can update or delete data**  on the network.
- Every piece of information on the blockchain is hashed cryptographically, meaning every portion of data has a unique identity on the network. 
- All the blocks contain a unique hash of their own and the hash of the previous block. 
- The  **blocks are cryptographically linked**  with each other. 

### **Consensus**

- Every blockchain has a consensus to help the network to  **make quick and unbiased decisions. **
- Consensus is a decision-making algorithm for the group of nodes active on the network to reach an agreement. 
- Nodes might not trust each other, but they can trust the algorithm. 

### **Unanimous**

- Most network participants agree to the validity of the records before they can be added to the network. 
- When a node wants to add a block to the network → It must get majority voting; otherwise, the block cannot be added to the network. 
- Every record is updated simultaneously, and the updations propagate quickly in the network. 
- It is not possible to make any change without consent from the majority of nodes in the network.

### **Asset Transfers**

- Record and transfer the ownership of different  **unique**  assets. 
- Digital assets like NFTs (= a representation of ownership of digital art and videos).
- To process the ownership of real-life assets, like the deed to real estate and vehicles.
  - The two sides of a party would first use the blockchain to verify that one owns the property and the other has the money to buy it.
  - They could complete and record the sale on the blockchain.

* * *

## The Slides
<iframe src="https://www.slideshare.net/slideshow/embed_code/253100226" width="696" height="570" sandbox="allow-popups allow-scripts allow-same-origin allow-presentation" allowfullscreen webkitallowfullscreen mozallowfullscreen></iframe>