Summary

This chapter served as an introduction to the technology behind blockchain. The chapter started by explaining that a blockchain is a digital system of recording transactions of assets in a list that is replicated across available nodes in the network. A block in the chain is somewhat analogous to pages in a book.

The chapter continued by answering the question of how a blockchain works, and it described the flow of data in a blockchain once a transaction is submitted, from the broadcast of transactions to all other nodes using a peer-to-peer network to the verification steps in the consensus protocol. I reviewed each step in the flow of data, its purpose, and the changes that occur to the data.

In the next section, you learned what the architecture behind the blockchain technology looks like, as well as the architectural layers and capabilities of a typical blockchain. I described the purpose of each layer, namely the data layer, network layer, consensus layer, incentive layer, and application layer, and, for each capability, additional details about what you can do with it were provided.

After explaining the technology in more detail, you learned about the similarities and differences between public and private blockchains, how each secures the data and ensures your privacy, and what kinds of applications can run on public and private blockchains.

In the next chapter, How Blockchain Will Disrupt Your Clients and Customers, I will talk about Oracle's vision for using the blockchain in everyday applications, how it will affect Oracle developers, and the possibilities for end users/customers.