Blockchain TechnologyWhat is Blockchain?
Blockchain is a decentralized digital ledger technology that records transactions across a network of computers. Each transaction is stored in a "block," and these blocks are linked together in a chronological "chain."
This structure ensures that the data is secure, transparent, and tamper-proof, as altering any single block would require changes to all subsequent blocks, which is computationally infeasible.
How Does Blockchain Work?
Transaction Initiation: A user initiates a transaction, which is then broadcast to the network.
Validation: Network nodes (computers) validate the transaction using consensus algorithms like Proof of Work (PoW) or Proof of Stake (PoS).
Block Creation: Validated transactions are grouped into a new block.Consensus: Nodes reach consensus on the validity of the new block. For PoW, this involves solving a complex mathematical puzzle; for PoS, it involves nodes staking their tokens.
Chain Addition: The new block is added to the blockchain, making the transaction permanent and immutable.Completion: The transaction is confirmed, and the parties involved are notified.
Applications of Blockchain Beyond Cryptocurrency
Supply Chain Management: Blockchain can track the origin and journey of products, ensuring transparency and reducing fraud.
Healthcare: Securely storing and sharing patient records while maintaining privacy and consent.
Voting Systems: Creating tamper-proof and transparent voting systems to ensure fair elections.
Real Estate: Streamlining property transactions by recording ownership and transfer of assets on the blockchain.
Intellectual Property: Protecting intellectual property rights by timestamping and immutably recording ownership of creative works.