What is Blockchain?
A blockchain is a super secure way of keeping track of things like money or information. Imagine a public record of transactions, like a giant receipt book, but everyone on the network has a copy and can see all the entries. This makes it nearly impossible to cheat or change the records.
Block: The Secured Pages of the Ledger
Think of each block as a secure sheet in this giant ledger. It holds a specific amount of verified information, typically a batch of transactions. These transactions can be anything from financial exchanges, like sending and receiving cryptocurrency, to tracking ownership of digital assets, or even recording the movement of goods in a supply chain. Every block acts like a tamper-proof snapshot, capturing a specific set of transactions at a particular point in time.
Chain: The Chain of Trust
The true power of this shared ledger lies in how these blocks are secured. Each block contains a unique fingerprint, called a cryptographic hash, based on its contents. If anything within a block changes, even a tiny detail, the entire fingerprint gets scrambled. Even more ingenious, each new block also includes the unique fingerprint of the block before it. This creates a chronological chain where every block is securely linked to the one before it, all the way back to the very first block. Tampering with any block would be nearly impossible as it would require altering the fingerprints of all subsequent blocks as well.
Why is this block and chain structure important?
This linking with hashes creates a tamper-proof record. If someone tries to alter the data in a block, the hash of that block would change, and all subsequent blocks would become invalid. This makes it very difficult to tamper with the data on a blockchain without detection.
The block and chain structure also creates a decentralized system. There's no single authority controlling the blockchain; instead, it's maintained by a network of computers. Each computer on the network has a copy of the blockchain, and any new block added must be validated by the majority of the network.
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