Blockchain Fundamentals and Guide collects the best essential information based on the current Blockchain Ecosystem and Technology, serving as general guidance addressed to new users, curious community members, prospective partners, and new core contributors to the NEAR Collective. This Playbook is a living document that will be regularly updated by the Legal Guild (LG). It also relies on community members to raise relevant requests for clarifications and modifications, so please interact with us!
- Overview of Playbook
- Blockchain Definition
- Blockchain Governance
- Smart Contracts
- Non- Fungible Token (NFT)
- Decentralized Finance (DeFi)
- Exchange Decentralized (DEX)
- Decentralized Autonomous Organization (DAO)
- About This Document
- Annex I: Vocabulary Glossary
- Annex II: Credit Resources
Blockchain Definition: Accounting Ledger where all shared and decentralized digital files are recorded that can be consulted by anyone who is part of the network. Once the information is recorded within the blockchain, it isn’t easy to modify. BC is an immutable, permanent database and always works under consensus.
Each block in the chain contains three elements:
- Data that is stored in that block (for example, the details of a transaction)
- Hash: a string of numbers and letters that identifies that block and its content; it is always unique as a fingerprint. Every time a new block is created, a new fingerprint/hash is created.
- Hash of the previous block: one block depends on the other, forming a unique and secure information chain.
Block three refers to block two, and block two is required to one. The first block is called “Genesis Block.”
Features that ensure safety:
- To avoid fraud or manipulation of a block, Blockchain technology uses a cryptographic protocol called “Proof of Work” (POW): request for additional calculations necessary to slow down the creation of new blocks and make any fraud operation much more complex to perform.
- Decentralization: blockchain uses a peer-to-peer (p2p) network that anyone can access or participate in; whoever joins this network becomes a node (computer), obtains a complete copy of the blockchain, and verifies that everything is in order. When someone creates a new block, it is sent to the rest of the network, where it will be confirmed, and if accepted, it will be added to the blockchain.
- If someone wants to manipulate the blockchain successfully, it would be necessary to manipulate all the blocks in the chain, redo the proof of work for each block and take control of 50% +1, which is impossible in terms of time and energy.
Types of Blockchain…