A block is the fundamental unit of record-keeping. If you imagine a blockchain as a digital “Book of Truth” that everyone in the world can see but no one can erase, then a block is a single, completed page in that book. Once a page is full, it is “bound” to the book permanently, and a new page is started.

The concept was introduced in 2008 by the mysterious Satoshi Nakamoto. Before blocks came into being, digital money had a “double-spending” problem. This made it easy to copy and paste a digital dollar like a JPEG. Nakamoto’s brilliant idea involved grouping transactions into blocks and connecting them with a mathematical seal. The result ensured that once a transaction is “written on the page,” it can’t be spent again. If a hacker tries to change even one tiny comma in an old block, that block’s fingerprint changes instantly.

Every block consists of two main parts, the header and the body. The header acts as the block’s metadata. It includes a timestamp and a unique digital fingerprint called a Hash. Most importantly, it contains the fingerprint of the previous block. The “chain” in blockchain comes from how blocks interact. Each new block includes the hash of the block that came before it. If a single character of data is changed in an old block, its hash changes, which breaks the connection to every subsequent block. Remember, each new block’s header contains the “DNA” (the hash) of the one before it, they form an unbreakable sequence.

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Related Terms

Multi-Party Computation

Multi-Party Computation, which people commonly call MPC, functions as a cryptographic method that enables several parties to compute a result while safeguarding their individual secret information from each other. The system enables people to work together on protected information without requiring them to trust each other completely or share their private data. The academic field of cryptography developed this concept through research activities that existed before blockchain technology appeared.  Researchers sought to solve a core problem that involved different parties

Hashed Timelock Contract

A Hashed Timelock Contract (HTLC) is a type of smart contract, self-executing code that lives on a blockchain, that lets two people exchange assets directly with each other, without needing a middleman. It works through two prebuilt conditions. In essence, a secret code must be revealed to be able to claim the funds. If the swap isn’t completed in time, an automatic refund occurs. Both parties end up getting what they agreed to, or otherwise, neither loses anything at all.

Keccak-256

Keccak-256 serves as a widely utilized cryptographic hash function for blockchain systems which includes its primary application in the Ethereum network. The algorithm belongs to the Keccak hashing algorithm family which served as the foundation for the US National Institute of Standards and Technology to select SHA-3 as its official standard. Ethereum uses the original Keccak-256 variant because SHA-3 and Keccak share a strong relationship between their two systems. Keccak-256 processes any input size to produce a constant output size