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Blockchain: why link blocks?

What you will learn

Draw three blocks with links to their predecessors. Explain what needs checking if the first block changes.

A blockchain is a digital log of records grouped into blocks linked by cryptographic fingerprints.

On a network such as Bitcoin, many computers check the ledger under shared rules. Each block refers to its predecessor’s fingerprint, called a hash. Changing a record changes its hash and reveals a mismatch in the links that follow. Hashing is not encryption that hides information. Links alone do not prevent forgery: transaction validation and consensus also protect the history. Well-confirmed history is difficult to alter, but protection is not absolute.

Imagine a shared class notebook: each page includes the previous page’s fingerprint. A later edit creates a mismatch. This is an analogy; computers use cryptographic calculations.

Draw three blocks with links to their predecessors. Explain what needs checking if the first block changes.

Bitcoin · White paper ↗

Check your understanding

What does the cryptographic link to the previous block do?

  • Hide the coin’s price
  • Link records and reveal changes
  • Guarantee a profit
Answer and explanation

Link records and reveal changes. The link helps detect changes to history; it does not promise returns.

Does hashing alone protect the whole network?

  • No, validation and consensus rules are also needed
  • Yes, transactions need no checking
  • Yes, it prevents every attack
Answer and explanation

No, validation and consensus rules are also needed. Protection depends on several mechanisms working together.

Continue learning

Price-to-Earnings (P/E): What is the price relative to earnings? — The price-to-earnings (P/E) ratio is the share price divided by earnings per share. It is a ratio, not a forecast and not a buy recommendation.

Two funds: Did we really diversify? — Different funds can hold the same companies. Check cumulative exposure, not just the number of funds.

Crypto: What Is Bitcoin? — A cryptographic asset is a digital asset that operates using cryptographic rules and a network of computers.

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