Lesson 1: Blockchain and Cryptocurrency Fundamentals

What is blockchain?

Blockchain is a digital ledger that stores data in blocks, which are linked chronologically. It is decentralized, meaning that no single authority controls it, making it secure and transparent.

How blockchain works:

1. Transaction initiation: A transaction is requested (e.g., sending Bitcoin).

2. Verification: The transaction is verified by a network of computers (nodes).

3. Block formation: Verified transactions are added to a block.

4. Block linking: The block is linked to the previous one using cryptography.

5. Confirmation: The transaction is completed and stored permanently.

Key features of blockchain:

Decentralized: No central authority.

Immutable: Data cannot be changed once recorded.

Secure: Uses cryptography and consensus mechanisms.

What is cryptocurrency?

Cryptocurrency is a digital or virtual currency that uses cryptography for security. The most popular cryptocurrency is Bitcoin, but there are thousands of others (altcoins).

Types of cryptocurrencies:

1. Bitcoin (BTC): The first and most well-known cryptocurrency.

2. Ethereum (ETH): Known for smart contracts and decentralized applications (DApps).

3. Altcoins: Other coins like Binance Coin (BNB), Cardano (ADA), and Solana (SOL).

4. Stablecoins: Pegged to real-world assets like USD (e.g. USDT, USDC).

How cryptocurrency transactions work:

Transactions are sent from one wallet to another.

Wallets have public addresses (like account numbers) and private keys (like passwords).

Transactions are recorded on the blockchain.#BtcNewHolder