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Wednesday, 20 August 2025

Blockchain: A guide to decentralized technology

Blockchain Technology Explained

Blockchain: A guide to decentralized technology - by Mohd Yamani Idna Idris

Deconstructing Blockchain

A visual guide to the decentralized technology revolutionizing digital trust and transparency.

What is a Blockchain?

Blockchain is a decentralized, digital ledger. Think of it as a shared, unchangeable record of transactions that's distributed across many computers, rather than being stored in one central location. This structure removes the need for a central authority, creating a system built on collective trust and cryptographic security.

Distributed Ledger

The ledger is duplicated and distributed across a network of computers, called "nodes." This decentralization means there is no single point of failure, making the system incredibly resilient and robust against attacks or outages.

Immutable Records

Once a block of data is added to the chain, it cannot be altered. Each block is cryptographically linked to the one before it with a "hash." Changing a block would change its hash, breaking the chain and being immediately rejected by the network.

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Hash: A1B2

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Hash: C3D4

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Hash: E5F6

Transparency & Security

All participants can see the transactions, ensuring transparency. However, participants' identities are protected by cryptographic addresses. This creates a system where actions are visible, but privacy is maintained.

How a Transaction Works

1.

Transaction Created

A request for a transaction is initiated and broadcast to the network.

2.

Network Verification

Nodes on the network validate the transaction using consensus algorithms.

3.

Block Formation

The verified transaction is bundled with others to create a new block.

4.

Chain Addition

The new block is cryptographically added to the existing chain, creating a permanent record.

Infographic created to visualize the core concepts of Blockchain technology.

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