{"id":4746,"date":"2023-01-17T19:22:10","date_gmt":"2023-01-17T19:22:10","guid":{"rendered":"https:\/\/metaschool.so\/articles\/?p=4746"},"modified":"2024-07-24T07:37:32","modified_gmt":"2024-07-24T07:37:32","slug":"what-three-concepts-foundation-of-blockchain","status":"publish","type":"post","link":"https:\/\/metaschool.so\/articles\/what-three-concepts-foundation-of-blockchain\/","title":{"rendered":"Top 3 Blockchain Foundational Concepts"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_56_1 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/metaschool.so\/articles\/what-three-concepts-foundation-of-blockchain\/#What_are_the_three_concepts_used_to_explain_the_foundation_of_blockchain\" title=\"What are the three concepts used to explain the foundation of blockchain? \">What are the three concepts used to explain the foundation of blockchain? <\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/metaschool.so\/articles\/what-three-concepts-foundation-of-blockchain\/#1_Distributed_ledger_technology\" title=\"1) Distributed ledger technology\">1) Distributed ledger technology<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/metaschool.so\/articles\/what-three-concepts-foundation-of-blockchain\/#2_Cryptography\" title=\"2) Cryptography\">2) Cryptography<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/metaschool.so\/articles\/what-three-concepts-foundation-of-blockchain\/#3_Consensus_mechanism\" title=\"3) Consensus mechanism\">3) Consensus mechanism<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/metaschool.so\/articles\/what-three-concepts-foundation-of-blockchain\/#How_does_consensus_work_in_a_blockchain_network\" title=\"How does consensus work in a blockchain network?\">How does consensus work in a blockchain network?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/metaschool.so\/articles\/what-three-concepts-foundation-of-blockchain\/#What_are_the_4_main_components_of_blockchain\" title=\"What are the 4 main components of blockchain?\">What are the 4 main components of blockchain?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/metaschool.so\/articles\/what-three-concepts-foundation-of-blockchain\/#Which_data_is_stored_on_a_block_in_a_blockchain\" title=\"Which data is stored on a block in a blockchain?\">Which data is stored on a block in a blockchain?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n<p><a href=\"https:\/\/metaschool.so\/articles\/what-is-blockchain-guide\/\">Blockchain technology<\/a> is a decentralized, secure and transparent technology that uses distributed <a href=\"https:\/\/metaschool.so\/articles\/blockchain-ledger-meaning\/\" target=\"_blank\" rel=\"noreferrer noopener\">ledger<\/a>, cryptography and <a href=\"https:\/\/metaschool.so\/articles\/consensus-mechanism-meaning\/\">consensus mechanism<\/a> to record, store and validate transactions. It is a powerful tool that has the potential to revolutionize several industries.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-are-the-three-concepts-used-to-explain-the-foundation-of-blockchain\"><span class=\"ez-toc-section\" id=\"What_are_the_three_concepts_used_to_explain_the_foundation_of_blockchain\"><\/span>What are the three concepts used to explain the foundation of blockchain? <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"1-distributed-ledger-technology\"><span class=\"ez-toc-section\" id=\"1_Distributed_ledger_technology\"><\/span>1) Distributed ledger technology<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A distributed <a href=\"https:\/\/metaschool.so\/articles\/blockchain-ledger-meaning\/\">ledger<\/a> is a type of database that is spread across a network of computers. In the case of <a href=\"https:\/\/metaschool.so\/blockchains?ref=Articles&amp;utm_source=Blog_Organic\" target=\"_blank\" rel=\"noreferrer noopener\">blockchains<\/a>, this network is decentralized, meaning that no single entity controls or maintains the ledger. Instead, it is maintained by a network of participants, each of whom has a copy of the ledger. <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/metaschool.so\/articles\/wp-content\/uploads\/2023\/01\/distributedledger-1024x576.png\" alt=\"Distributed ledger technology icon and explanation\" class=\"wp-image-4750\" srcset=\"https:\/\/metaschool.so\/articles\/wp-content\/uploads\/2023\/01\/distributedledger-1024x576.png 1024w, https:\/\/metaschool.so\/articles\/wp-content\/uploads\/2023\/01\/distributedledger-300x169.png 300w, https:\/\/metaschool.so\/articles\/wp-content\/uploads\/2023\/01\/distributedledger-768x432.png 768w, https:\/\/metaschool.so\/articles\/wp-content\/uploads\/2023\/01\/distributedledger-1536x864.png 1536w, https:\/\/metaschool.so\/articles\/wp-content\/uploads\/2023\/01\/distributedledger-1320x743.png 1320w, https:\/\/metaschool.so\/articles\/wp-content\/uploads\/2023\/01\/distributedledger.png 1920w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption><strong>Distributed Ledger Technology.<\/strong> <em>Property of Metaschool. Please cite as source if using. <\/em><\/figcaption><\/figure><\/div>\n\n\n\n<p>This allows for greater transparency and security, as any changes to the ledger must be agreed upon by a majority of the participants. An example of this technology is how blockchain is used in the <a href=\"https:\/\/en.wikipedia.org\/wiki\/Supply_chain_management\" target=\"_blank\" rel=\"noreferrer noopener\">supply chain management<\/a>, where the distributed ledger is used to track the movement of goods from the manufacturer to the consumer.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"2-cryptography\"><span class=\"ez-toc-section\" id=\"2_Cryptography\"><\/span>2) Cryptography<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><a href=\"https:\/\/metaschool.so\/articles\/guide-crypto-algorithm\/\">Cryptography<\/a> is the practice of securing communications through the use of codes. In blockchain, advanced cryptographic techniques are used to secure transactions and ensure the integrity of the data stored on the ledger. <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/metaschool.so\/articles\/wp-content\/uploads\/2023\/01\/cryptography-1024x576.png\" alt=\"cryptography in blockchain icon and explanation\" class=\"wp-image-4749\" srcset=\"https:\/\/metaschool.so\/articles\/wp-content\/uploads\/2023\/01\/cryptography-1024x576.png 1024w, https:\/\/metaschool.so\/articles\/wp-content\/uploads\/2023\/01\/cryptography-300x169.png 300w, https:\/\/metaschool.so\/articles\/wp-content\/uploads\/2023\/01\/cryptography-768x432.png 768w, https:\/\/metaschool.so\/articles\/wp-content\/uploads\/2023\/01\/cryptography-1536x864.png 1536w, https:\/\/metaschool.so\/articles\/wp-content\/uploads\/2023\/01\/cryptography-1320x743.png 1320w, https:\/\/metaschool.so\/articles\/wp-content\/uploads\/2023\/01\/cryptography.png 1920w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption><strong>Cryptography.<\/strong> <em>Property of Metaschool. Please cite as source if using. <\/em><\/figcaption><\/figure><\/div>\n\n\n\n<p>For example, a unique digital signature is generated for each transaction, which acts as a &#8220;fingerprint&#8221; that can be used to confirm the identity of the sender. <\/p>\n\n\n\n<p>Additionally, each <a href=\"https:\/\/metaschool.so\/articles\/block-meaning-blockchain\/\">block<\/a> in the blockchain is linked to the previous block using a cryptographic hash function, which helps to ensure the integrity of the data and prevent tampering.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"3-consensus-mechanism\"><span class=\"ez-toc-section\" id=\"3_Consensus_mechanism\"><\/span>3) Consensus mechanism<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A consensus mechanism is a method of ensuring that all participants in the network agree on the current state of the ledger. This is necessary to prevent conflicts and ensure the integrity of the data. <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/metaschool.so\/articles\/wp-content\/uploads\/2023\/01\/consensusmechanism-1024x576.png\" alt=\"consensus technology icon and explanation\" class=\"wp-image-4748\" srcset=\"https:\/\/metaschool.so\/articles\/wp-content\/uploads\/2023\/01\/consensusmechanism-1024x576.png 1024w, https:\/\/metaschool.so\/articles\/wp-content\/uploads\/2023\/01\/consensusmechanism-300x169.png 300w, https:\/\/metaschool.so\/articles\/wp-content\/uploads\/2023\/01\/consensusmechanism-768x432.png 768w, https:\/\/metaschool.so\/articles\/wp-content\/uploads\/2023\/01\/consensusmechanism-1536x864.png 1536w, https:\/\/metaschool.so\/articles\/wp-content\/uploads\/2023\/01\/consensusmechanism-1320x743.png 1320w, https:\/\/metaschool.so\/articles\/wp-content\/uploads\/2023\/01\/consensusmechanism.png 1920w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption><strong>Consenus Mechanism.<\/strong> <em>Property of Metaschool. Please cite as source if using. <\/em><\/figcaption><\/figure><\/div>\n\n\n\n<p>One of the most widely used consensus mechanisms in blockchain is called proof-of-work. In <a href=\"https:\/\/metaschool.so\/articles\/proof-of-work-meaning\/\">proof-of-work<\/a>, participants in the network, called &#8220;miners&#8221;, compete to solve a complex mathematical problem. The first miner to solve the problem is able to add a new <a href=\"https:\/\/metaschool.so\/articles\/block-meaning-blockchain\/\">block<\/a> to the blockchain, and in return, they are rewarded with a certain number of cryptocurrency. <\/p>\n\n\n\n<p>Another example is <a href=\"https:\/\/metaschool.so\/articles\/proof-of-stake-pos-meaning\/\">proof-of-stake<\/a>, where instead of solving complex mathematical problem, participants also known as &#8220;<a href=\"https:\/\/metaschool.so\/articles\/validator-blockchain\/\">validators<\/a>&#8221; are chosen randomly to validate a block based on how much cryptocurrency they hold.<\/p>\n\n\n\n<p>Hopefully now you&#8217;re clear on what are the three concepts used to explain the foundation of blockchain. If you want to learn more, explore the <a href=\"https:\/\/metaschool.so\/articles\/\" target=\"_blank\" rel=\"noreferrer noopener\">Metaschool blog<\/a> or better yet, check out some of our <a href=\"https:\/\/metaschool.so\/courses?ref=Articles&amp;utm_source=Blog_Organic\" target=\"_blank\" rel=\"noreferrer noopener\">web3 courses<\/a> and put this knowledge to practice. <\/p>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-66a0af3cb4d09\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"How_does_consensus_work_in_a_blockchain_network\"><\/span>How does consensus work in a blockchain network?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>There are various consensus mechanisms in blockchain and each has its own unique working process. These mechanisms ensure that there is a unanimous agreement or disagreement amongst the masses. In the case of blockchain, these masses are nodes which are computer servers responsible for validating a crypto transaction. These nodes are intertwined and closely connected to each other. A consensus mechanism specifically ensures that all the nodes are on one page. It also ensures that in case a computer server &#8211; a node &#8211; gets corrupted or stops working, the rest of the nodes should not. This is how consensus works in a blockchain network.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-66a0af3cb4d14\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What_are_the_4_main_components_of_blockchain\"><\/span>What are the 4 main components of blockchain?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The 4 main components of blockchain are nodes, ledger, assets and consensus mechanism. Together these comprise a blockchain.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-66a0af3cb4d1c\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Which_data_is_stored_on_a_block_in_a_blockchain\"><\/span>Which data is stored on a block in a blockchain?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>A block in a blockchain has all the transaction data stored in it. Each block has a certain capacity and the transactions are stored in groups in each block. Thus, all the transaction records can be found on a block.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"","protected":false},"author":6,"featured_media":4752,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":""},"categories":[292],"tags":[51],"class_list":["post-4746","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-answers","tag-blockchain"],"_links":{"self":[{"href":"https:\/\/metaschool.so\/articles\/wp-json\/wp\/v2\/posts\/4746","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/metaschool.so\/articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/metaschool.so\/articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/metaschool.so\/articles\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/metaschool.so\/articles\/wp-json\/wp\/v2\/comments?post=4746"}],"version-history":[{"count":5,"href":"https:\/\/metaschool.so\/articles\/wp-json\/wp\/v2\/posts\/4746\/revisions"}],"predecessor-version":[{"id":7707,"href":"https:\/\/metaschool.so\/articles\/wp-json\/wp\/v2\/posts\/4746\/revisions\/7707"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/metaschool.so\/articles\/wp-json\/wp\/v2\/media\/4752"}],"wp:attachment":[{"href":"https:\/\/metaschool.so\/articles\/wp-json\/wp\/v2\/media?parent=4746"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/metaschool.so\/articles\/wp-json\/wp\/v2\/categories?post=4746"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/metaschool.so\/articles\/wp-json\/wp\/v2\/tags?post=4746"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}