What are the building blocks of blockchain technology?

The building blocks of blockchain technology can be divided into three main components: decentralized network, consensus protocol, and cryptographic algorithms. The decentralized network is a peer-to-peer network where multiple participants, called nodes, interact with each other without the need for a central authority. The consensus protocol ensures that all nodes agree on the state of the blockchain and verify the validity of transactions. This protocol can be achieved through various algorithms such as Proof of Work or Proof of Stake. Lastly, cryptographic algorithms provide security and integrity to the blockchain by encrypting and securing transactions, ensuring that they cannot be tampered with or changed. These building blocks work together to create a transparent, immutable, and secure ledger system that is the backbone of blockchain technology.

This mind map was published on 21 July 2023 and has been viewed 77 times.