Multi-signature wallets (also known as multi-sig) prevent single points failure by requiring several private keys for transactions, rather than relying solely on one key. How they improve security and decentralization is as follows: 1. Eliminating the Single…
If two people generate the same private key in a cryptographic system (such as Bitcoin, Ethereum, or any other blockchain that uses public-private key cryptography), several critical security issues arise: 1. Loss of Security &…
Imagine you’re at a library, but instead of flipping through every book to find a single sentence, the librarian hands you a map that leads straight to it. That’s kind of what Merkle trees do…
Layer-2 solutions such as the Lightning Network reduce congestion on blockchains through several mechanisms. Off-Chain Transactions: Payment channels: Through funding transactions, users establish channels on the main blockchain (Layer 1). The main blockchain is bypassed by…
The anonymity of blockchain transactions offers enhanced security and privacy, but there are also several ethical considerations. 1. Privacy vs. Transparency - While anonymity may protect an individual's privacy, it could hinder transparency and accountability. This lack…
Why do some blockchains have fixed token supplies (e.g., Bitcoin’s 21M cap)? For several strategic and philosophical considerations, blockchains have fixed token supply limits, such as Bitcoin 21 million. Scarcity & Value PropositionA fixed supply…
Zero-Knowledge Proofs are cryptographic techniques that allow one party to prove to another that a statement is true without divulging any additional information. ZKPs are used to enhance privacy in the context of Blockchain technology by…
Blockchain networks primarily use two distinct models for managing and recording transactions: the Unspent Transaction Output model (UTXO) and the account-based system. Bitcoin is an example of the UTXO system, while Ethereum uses an account-based model.…