Blockchain technology is like a digital ledger that keeps a record of transactions, but it's special because it's decentralized. Here's a simple breakdown:
1. Blocks: Think of these as digital pages in a ledger. They store a limited number of transactions.
2. Transactions: These are records of moving something valuable, like cryptocurrency or digital property, from one person to another.
3. Nodes: These are like the computers in the network. Some keep the entire history (full nodes), while others keep only a part (light nodes).
4. Consensus: It's how the computers in the network agree that a transaction is valid, preventing fraud.
5. Encryption: Data in blocks is secured using strong codes to keep it safe.
6. Private and Public Keys: Everyone has a pair of keys. The private key is used to sign transactions, and the public key is used to check the signature.
7. Mining: Miners use computer power to verify transactions and add them to the blockchain. They get rewarded with cryptocurrency.
8. Smart Contracts: These are like self-executing computer programs that automatically do something when certain conditions are met.
9. Decentralization: The blockchain isn't controlled by one authority, making it secure and preventing any single entity from having too much power.
10. Crypto Assets: Instead of physical money, we use digital assets like Bitcoin or Ethereum.
Blockchain is used in many areas, like finance, logistics, and healthcare, making transactions and data storage more secure and efficient.
