The Internet And Its Uses: Digital Currency: Understand The Process Of Blockchain And How It Is Used To Track Digital Currency Transactions (Copy)
| Aspect | Key Points |
|---|---|
| Definition | Blockchain is a distributed digital ledger that records transactions securely |
| Purpose | Tracks digital currency transactions transparently |
| Nature | Decentralised – no single central authority |
| Structure | Made up of blocks linked together |
Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Computer Science Full Scale Course
| Structure Of A Blockchain | Explanation |
|---|---|
| Block | Stores a group of transactions |
| Hash | Unique digital fingerprint of a block |
| Previous Hash | Links current block to previous block |
| Chain | Series of blocks linked together |
| What A Block Contains | Description |
|---|---|
| Transaction Data | Sender, receiver, amount |
| Timestamp | Time of transaction |
| Hash | Identifies the block |
| Previous Block Hash | Maintains chain integrity |
Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Computer Science Full Scale Course
| How Blockchain Tracks Digital Currency | Step |
|---|---|
| Step 1 | Transaction is requested |
| Step 2 | Transaction broadcast to network |
| Step 3 | Network nodes verify transaction |
| Step 4 | Verified transaction added to a block |
| Step 5 | Block added permanently to blockchain |
Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Computer Science Full Scale Course
| Key Blockchain Features | Purpose |
|---|---|
| Decentralisation | No central control |
| Transparency | Transactions visible to network |
| Immutability | Data cannot be altered |
| Security | Cryptography prevents tampering |
Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Computer Science Full Scale Course
| Blockchain In Digital Currency | Explanation |
|---|---|
| Ownership Proof | Confirms who owns currency |
| Double Spending Prevention | Same currency cannot be used twice |
| Transaction History | Permanent public record |
| Trust | Removes need for intermediaries |
Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Computer Science Full Scale Course
| Exam Key Phrases | Use These |
|---|---|
| Blockchain | “Decentralised digital ledger” |
| Block | “Contains transactions and hashes” |
| Tracking | “Each transaction permanently recorded” |
| Security | “Cryptographic hashing prevents changes” |
Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Computer Science Full Scale Course