Blockchain is a distributed and decentralized digital ledger technology that records transactions across multiple computers in a way that is secure, transparent, and resistant to modification. It is the underlying technology behind cryptocurrencies like Bitcoin, but its applications extend far beyond digital currencies.
The blockchain consists of a chain of blocks, with each block containing a list of transactions. Once a block is filled with transactions, it is added to the existing blockchain in a linear, chronological order. Each block contains a unique cryptographic hash of the previous block, which creates a secure and tamper-resistant link between the blocks. This makes it extremely difficult to alter or delete any transaction records without affecting all subsequent blocks in the chain.
One of the key features of blockchain technology is its decentralized nature. Instead of relying on a central authority or intermediary to validate and record transactions, blockchain uses a consensus mechanism to ensure that all participants in the network agree on the validity of transactions. This decentralization makes it more difficult for any single entity to control or manipulate the system, enhancing security and trust in the network.
In addition to cryptocurrencies, blockchain technology has applications in various industries such as supply chain management, healthcare, finance, and more. It enables the creation of transparent, traceable, and secure systems for recording and verifying transactions, leading to increased efficiency, reduced fraud, and improved trust among stakeholders.
