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Introduction to Blockchain
What is blockchain? Blockchain is a distributed ledger technology used to record transactions and data. It is a decentralized database system that stores data across multiple computer nodes and synchronizes and updates the data.
How to understand blockchain? Blockchain is like a continuously growing public ledger that is not controlled by a central authority but is managed collectively by many people. Whenever a new transaction occurs, its transaction information is recorded.
Why is it called blockchain? "Block" refers to data being grouped and packaged into individual data blocks, while "chain" refers to each block being linked together by hash values, forming a chain structure that continuously expands.
Benefits of blockchain: Traditional transaction processes often require the involvement of intermediary institutions, such as banks and payment service providers. Blockchain is directly decentralized, allowing buyers and sellers to trade directly without any intermediaries.
Is blockchain banned now? The technology itself has not been comprehensively banned; many countries have an open attitude towards blockchain technology, recognizing its potential in various fields and actively promoting its development.
Is blockchain related to Bitcoin? Bitcoin is a digital currency that initially used blockchain technology to record transactions of this digital currency. Therefore, it can be said that blockchain technology originated from Bitcoin.

Principles of Blockchain
Transaction initiation: Transactions in blockchain can involve the transfer of digital currencies, trading of digital assets, or other forms of data transmission. Whenever someone initiates a transaction, it will be broadcasted to the entire blockchain network.
Transaction verification: Once a transaction is broadcasted, nodes in the blockchain network begin to verify the validity of the transaction, using methods such as proof of work or proof of stake to ensure that there is no double spending or other fraudulent activities.
Transaction packaging: Transaction information is packaged into a data block, known as a "block." This block will be added to the end of the blockchain, becoming part of it, and the latest blockchain will be synchronized to other network nodes.
Blockchain consensus: Each node in the blockchain has its own copy and maintains the integrity of the entire blockchain. Through consensus algorithms, nodes reach an agreement to ensure that all nodes have the same blockchain data.
Immutability: Once transaction data is written to the blockchain, it is difficult to alter or delete it. Modifying the data of one block would affect the hash values of all subsequent blocks, making it easy for other nodes in the network to detect.
Continuous expansion: The entire process of the blockchain is a continuous repetition of the above steps. Whenever a new transaction occurs, it will be verified, packaged into a block, and then added to the blockchain. It can be said that blockchain is a large ledger.

Characteristics of Blockchain
Decentralization: Blockchain is a decentralized technology, with no central authority controlling the entire network. Data is maintained and verified collectively by multiple nodes distributed across the network, without relying on a single entity's control.
Immutability: Once data is written to the blockchain, it is difficult to alter or delete it. Once data is written, subsequent blocks will link to it, and tampering with the data of one block will affect all subsequent blocks.
Transparency: All transactions and data in the blockchain are public and transparent. Anyone can view and verify the data on the blockchain, including transaction information such as sender, receiver, transaction amount, and transaction time.
Security: Blockchain uses cryptographic techniques to protect the security of data and transactions. Each transaction is verified and authorized using public and private key encryption, ensuring that only those with the private key can perform valid digital signatures and transactions.
Trustless transactions: Due to the decentralization and security of blockchain, parties involved in transactions do not need to trust each other. They rely on consensus algorithms and cryptographic techniques to ensure the validity and credibility of transactions, making the transaction process transparent.
Traceability: Blockchain records all transaction histories, and the data is immutable and cannot be deleted. This means it can be traced back to the original genesis block, which is very useful for supply chain management and traceability.

Types of Blockchain
Public blockchain: Public chains are the most typical type of blockchain, also known as open blockchains. On public chains, anyone can participate, view, and verify transactions, and can become a node in the network.
Private blockchain: Private chains are blockchains that only allow specific participants to join. Only authorized nodes can verify transactions and add blocks, typically used for data sharing and management within enterprises or specific organizations.
Consortium blockchain: Also known as industry blockchains, they are jointly managed by multiple organizations or entities, which usually belong to the same industry or share common business interests. The control of consortium chains is managed collectively by the participating members.

Applications of Blockchain
Digital currency transactions: The most famous application of blockchain is Bitcoin and other digital currency transactions. Blockchain technology provides the foundation for a decentralized digital payment system, allowing users to conduct peer-to-peer transactions directly.
Digital asset management: Blockchain can be used for the registration and management of digital assets, including tokenized assets (converting physical assets into digital tokens), digital copyrights, and real estate securitization, enhancing asset liquidity.
Smart contracts: Smart contracts can automate business processes and transactions, reducing intermediary costs and improving transaction efficiency. They are self-executing codes that automatically execute transactions when conditions are met, similar to stocks.
Supply chain management: Blockchain can be used for supply chain traceability and management, recording the sources of raw materials, production processes, and transportation conditions on the blockchain, achieving transparency and credibility in the supply chain and improving product quality.
Voting and elections: Blockchain can be used to implement transparent and secure voting and election systems, preventing electoral fraud and data tampering. Each voter can have an encrypted wallet address to represent their identity.
Gaming and virtual assets: Blockchain can be used for the issuance and trading of virtual assets in games, achieving true ownership and value transfer. Traditional virtual asset trading in games is often limited to internal trading systems.
Logistics and transportation: Blockchain can improve transparency and efficiency in the logistics and transportation industry, enabling real-time tracking and delivery of goods. Each link is recorded on the blockchain and can be verified by all authorized participants.
Others: In fact, any area involving data recording can utilize blockchain, such as medical information recording, student information recording, real estate transaction records, financial transaction settlements, and the digitization of government services.

Challenges of Blockchain
Privacy issues: The public transparency of blockchain may lead to the exposure of certain information, especially in cases involving personal identity and sensitive data. Once written, it cannot be modified or deleted, resulting in weak privacy protection.
Legal and regulatory issues: Due to the decentralized nature of blockchain, transactions are not subject to third-party regulation, which may lead to fraud, illegal activities, and malicious data dissemination. Relevant laws and regulations still need to be improved.
Standardization and interoperability: Currently, there are many different blockchain platforms lacking unified standards and interoperability, limiting interaction and cooperation between blockchains and leading to isolated ecosystems.
Cost and complexity: The development and deployment costs of blockchain are relatively high, and the technology is complex, which may pose a barrier for some enterprises and organizations, involving distributed systems, cryptography, consensus algorithms, and smart contracts.
Social awareness and acceptance: Due to the relatively new nature of blockchain technology, many people do not have a high level of understanding and acceptance, which may lead to public misunderstandings and negative perceptions of blockchain technology. More education and outreach are needed.
Data management and storage: Once data is written to the blockchain, it cannot be deleted or modified. This may pose challenges for storing large amounts of data, and for large-scale blockchain networks, storage demands may become very significant.

Core Technologies of Blockchain
Distributed ledger: The core of blockchain is the distributed ledger, a data system maintained and synchronized by multiple nodes in the blockchain network. Each node has a complete copy of the ledger, recording all transactions and data.
Consensus algorithms: To ensure that nodes in the network reach consensus on data updates, blockchain uses different consensus algorithms, such as proof of work, proof of stake, delegated proof of stake, and others.
Smart contracts: Smart contracts are self-executing codes on the blockchain that allow transactions and business logic to be executed when specific conditions are met, achieving decentralized automation and enabling automatic trading of digital assets.
Cryptography: Blockchain employs various cryptographic techniques, such as public and private key encryption, hash functions, digital signatures, and random number generation, to ensure data security and identity authentication, forming the security foundation of blockchain.
P2P network: Blockchain uses a peer-to-peer (P2P) network to connect all nodes for the transmission and synchronization of information and data, with a specific protocol in place to ensure communication between nodes.

Terms Related to Blockchain
Decentralization: Refers to a system or network where power, decision-making, and control are not concentrated in a single centralized entity or organization but are distributed among multiple participants, each having equal authority.
Replica: A replica refers to multiple copies or duplicates of the same data, file, database, or system, stored in different locations or devices to enhance data availability, reliability, and performance.
Digital RMB: Digital RMB is a digital currency launched by the People's Bank of China. Using digital RMB does not require a bank account; users can store and use it directly in a digital wallet to reduce cash circulation.
NFT: NFT stands for "Non-Fungible Token," a type of digital asset that can represent digital artworks, virtual game assets, digital collectibles, virtual real estate, etc. Each NFT is unique.
Bitcoin: Bitcoin is a digital currency and the first cryptocurrency supported by blockchain technology. The total issuance of Bitcoin is limited, with a maximum supply of 21 million coins, making Bitcoin scarce.
Metadata: Metadata is data that describes other data. For example, if I download a video file, the format, duration, creation time, author, copyright information, etc., of that video file are all considered metadata.
Genesis block: The genesis block is the first block in the blockchain network and the origin of the entire blockchain. It is generated by the creator or initial team of the blockchain when the network is launched, containing initial information.

Questions Related to Blockchain
Why do some say blockchain is a scam? The technology itself is not a scam. Blockchain, as a distributed ledger technology, has many potential advantages, such as decentralization, transparency, security, and traceability. However, the blockchain and cryptocurrency markets are highly volatile and risky investment areas. Some unscrupulous individuals may exploit investors' greed and lack of knowledge to commit fraud, launching fake projects and encouraging investors to invest funds, ultimately leading to losses.
Is blockchain a bubble? In recent years, due to the hype surrounding Bitcoin and other cryptocurrencies, some projects and ICOs (Initial Coin Offerings) may have been overhyped, leading to speculation and false advertising. Some investors may have been attracted by false promises, investing large sums of money, ultimately resulting in losses. Blockchain technology itself has enormous potential, but to achieve widespread application, further technological development, regulatory compliance, and market awareness are needed. Over time, blockchain technology may play a role in more fields and bring actual socio-economic benefits.
What is mining? Mining refers to the process of verifying and recording new transactions in the blockchain network and packaging these transactions into new blocks, which are then added to the blockchain. In blockchain, each transaction needs to be verified to ensure its legality and validity. These verification tasks are performed by nodes in the network (miners). Miners need to collect unprocessed transactions from the network, which are requests for blockchain transactions initiated by other users, such as digital currency transfers or smart contract executions. Miners verify the collected transactions, and upon successful verification, they gain the right to add new blocks. They broadcast the new block to the entire network and receive a certain amount of rewards, usually in the form of cryptocurrency, such as Bitcoin or Ether.
How does blockchain change our lives? Blockchain can transform traditional financial systems, enabling more flexible financial products and services. It can enhance transparency and traceability in logistics and supply chains, ensuring the reliability of goods' sources and transportation processes. Blockchain can strengthen the security and privacy protection of medical data, promoting the sharing and interoperability of medical information. It can enable transparent management of charitable donations and project funding, ensuring the flow and use of donations. Blockchain can improve voting and election processes, providing a more secure and transparent voting system. With continuous technological development and application expansion, blockchain is expected to play a positive role in more fields.
Are there many blockchain platforms? Yes, there are currently many blockchain platforms, each with its unique features and application areas. Blockchain platforms can be understood as providing the infrastructure for building and operating blockchain networks. They offer various tools, functions, and interfaces to help developers and organizations build and manage their blockchain applications. Common blockchain platforms include Ethereum, Hyperledger, EOS, Tron, and others.
How do blockchain platforms make money? Blockchain platforms typically allow users to conduct transactions on their networks, with each transaction generating a certain fee, which is part of the transaction and collected by the platform. In addition to transaction fees, they can generate revenue by providing development and consulting services, offering data storage services, advertising and promotion, and establishing partnerships with other companies or projects.