Blockchain is a decentralized, digital ledger that records transactions in a secure, transparent,
and tamper-proof way. Each record is stored in a "block" and linked to the previous one, forming
a continuous "chain" of data across a network of computers.
Difference between public blockchain and private blockchain ?
Feature Public Blockchain Private Blockchain
Access Open to anyone (anyone can Restricted (only selected
join and participate) participants can join)
Decentralizati Fully decentralized Partially decentralized or
on centralized
Speed Slower (due to more participants Faster (fewer users, simpler
and complex validation) validation)
Security Very secure, but uses heavy Secure, but trust is placed in
encryption and consensus selected users
Examples Bitcoin, Ethereum Hyperledger, Corda
Transparency Everything is visible to everyone Data is only visible to
authorized users
Use Case Cryptocurrencies, open Businesses, private
networks organizations, internal
processes
🔹 What is Consensus?
Consensus is the way all the computers (called nodes) in a
blockchain network agree on what is true — like which transactions
are valid and in what order.
Since blockchains don’t have a central authority, consensus helps everyone in
the network stay in sync and trust the data.
🔹 Why is Consensus Important?
● To prevent cheating (like double-spending in Bitcoin)
● To make sure everyone has the same version of the blockchain
● To keep the system secure and reliable without needing a boss
Method How it Works Used In
Proof of Work (PoW) Computers solve hard puzzles Bitcoin
to validate transactions
Proof of Stake (PoS) Users lock up coins to earn the Ethereum (now),
right to validate Cardano
Proof of Authority (PoA) Only trusted entities validate Private
transactions blockchains
Practical Byzantine Fault Nodes reach agreement even Hyperledger
Tolerance (PBFT) if some are faulty Fabric
About Smart Contract ??
→A smart contract is a program stored on the blockchain that runs
automatically when certain conditions are met.
It works like a digital agreement — no lawyer, no paperwork, no middleman.
Once it’s written, it executes itself.
A smart contract is a self-executing program stored on a
blockchain that automatically carries out the terms of an
agreement when predefined conditions are met.
Let me know if you’d like a shorter version or one customized for a specific
subject like Ethereum or business use cases!
🔹 Key Features:
● Automatic: It runs by itself when triggered.
● Trustless: You don’t have to trust the other person — just the code.
● Secure: Stored on the blockchain, so it can’t be changed or tampered with.
● Transparent: Everyone can see the rules of the contract.
🔹 Simple Example:
Imagine a vending machine:
● You put in $1
● It checks the amount
● If it’s enough, it gives you a soda
That’s how a smart contract works:
"If A happens, do B"
🔹 Real-World Uses:
● Sending money automatically (like splitting rent)
● NFTs and digital ownership
● Crowdfunding
● Voting systems
● Supply chain tracking
Main types of smart contracts?
🔹 1. Smart Legal Contracts
● These are digital versions of traditional legal agreements.
● Legally enforceable.
● Example: A rental agreement that auto-sends payments to the
landlord every month.
🔹 2. Decentralized Autonomous Organizations (DAOs)
● A whole organization or group run by smart contracts instead of
managers.
● Members vote, and the smart contract executes the decisions.
● Example: A crypto investment club where all rules are built into the
code.
🔹 3. Application Logic Contracts (ALCs)
● These are part of decentralized apps (dApps).
● They control how the app works and interacts with the blockchain.
● Example: A game where smart contracts control rewards and assets.
🔹 4. Multisignature Contracts (Multisig)
● Requires approval from multiple users to execute.
● Used for extra security and shared decision-making.
● Example: A company wallet that needs 3 out of 5 managers to
approve a transaction.
🔹 5. Oracle-based Smart Contracts
● Use external data (from oracles) to trigger actions.
● Example: A crop insurance contract that pays a farmer automatically
if weather data shows a drought.
About Etherum ?
Ethereum is a decentralized, open-source blockchain platform that
lets people build and run smart contracts and decentralized apps
(dApps) without needing a middleman.
It’s like a world computer — a place where anyone can create programs that
run exactly as coded, without censorship or downtime.
🔹 Key Features:
● Smart Contracts: Ethereum introduced the idea of self-executing
agreements on blockchain.
● Ether (ETH): Its native cryptocurrency, used to pay for transactions and
run programs.
● dApps: Apps that live on the blockchain — for finance, games, NFTs, and
more.
● Decentralized: No single person or company controls Ethereum.
🔹 What Can Ethereum Be Used For?
● Sending/receiving ETH (like digital money)
● NFTs (owning digital art or items)
● DeFi (decentralized finance apps like loans or trading)
● Gaming (own in-game assets that can't be taken away)
● Voting systems, identity, supply chain, and more
🔹 Fun Fact:
Ethereum was created in 2015 by Vitalik Buterin and others — and it's the
second-largest blockchain after Bitcoin!
