Crypto Investing — Novice: Blockchain Basics

A blockchain is the shared ledger. Transactions are grouped into blocks; each block is mathematically linked to the one before it using a hash (a digital fingerprint). Change anything in an old block and every later fingerprint breaks, which is why the history is considered tamper-evident.

Consensus is how the network agrees on the next block. Bitcoin uses Proof of Work (miners spend energy to earn the right to add a block); Ethereum and many others use Proof of Stake (validators lock up coins as collateral).

Core terms

• Node: a computer that keeps a copy of the ledger.
• Hash: a fixed-length fingerprint of data.
• Decentralization: no single point of control or failure.

Key takeaways

• Blocks are chained with hashes, making history tamper-evident.
• Consensus (PoW or PoS) decides who writes the next block.
• Decentralization is the source of crypto's resilience and its trade-offs.

Educational disclaimer: This material is provided by Nieto Engineering Inc. for internal education only. It is not investment, financial, legal, or tax advice and is not a recommendation to buy, sell, or hold any asset. Cryptocurrency, equities, and prediction markets carry substantial risk, including total loss of capital. Past performance does not indicate future results. Always do your own research and consult a licensed professional before investing.