Week 5 - Blockchain Flashcards
(11 cards)
Mention the limitations of the traditional banking system
- Single point of failure
- Lack of transparency
- High fees
Mention the key features offered by blockchain as a solution to these limitations
- Decentralization
- Security
- Transparency
- Reduced costs
Who introduced the concept of crypto and blockchain
Satoshi Nakamoto
What is a blockchain, simply put
A method of recording information that makes it impossible or difficult for the system to be changed, hacked or manipulated
What enables bitcoin to achieve their key characteristic of decentralization
Bitcoin relies on a distributed network of computers around the world called nodes
Mention the high level components of blockchain architecture
- Node: Network participants
- Transactions: A contract/agreement and transfer of assets between parties
- Block: This is similar to a link in a chain. They are like records that store transactions
- Chain: All blocks are conntected with the hold of a chain
- Miners: Mining is a process to validate each step in the transactions while operating crypto
- Consensus:
What does the detailed architecture of a blockchain consist of
- Header
- Previous block address
- Timestamp
- Nonce
- Merkel Root
What are the key characteristics of blockchain architecture
- Decentralization
- Persistency
- Anonymity
- Audibility
- Transparency
- Cryptography
What is the process of a blockchain transaction
- A node raises a transaction request
- Transaction is represented as a block
3.Block is broadcasted to all nodes of the network - Transaction is** validated by the nodes**
- A new block is added to the existing blockchain
- Transaction is complete
What are the types of blockchain architecture
- Public blockchains
- Private blockchains
- Hybrid blockchains
- Consortium blockchains
What are the types of consensus mechanisms
- Proof of work (PoW)
- Proof of Stake (PoS)
- Proof of Capacity (PoC)
- Proof of elapsed time (PoET)
