algo-blockchain-basics
Blockchain Fundamentals
Overview
A blockchain is a distributed, append-only ledger where blocks of transactions are cryptographically linked. Each block contains: transactions, previous block hash, timestamp, and nonce. Consensus mechanisms (PoW, PoS, BFT) ensure agreement without a central authority. Trade-off: decentralization vs performance.
When to Use
Trigger conditions:
- Evaluating whether blockchain is appropriate for a use case
- Designing systems requiring distributed trust, immutability, or transparency
- Understanding blockchain architecture for integration or development
When NOT to use:
- When a trusted central authority exists and works well (use a database)
- When performance (thousands of TPS) is the primary requirement
- When data privacy requires deletion capability (blockchain is append-only)
Algorithm
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