Blockchain is a type of distributed ledger technology (DLT) that allows data to be stored across a network of computers (or “nodes”) in a secure, transparent, and tamper-resistant way. The data is organized into blocks, each of which contains a list of transactions. These blocks are linked together in a chronological order to form a chain—hence the name “blockchain.”

Key Features of Blockchain:

1. Decentralization: Unlike traditional databases, which are usually controlled by a central authority, a blockchain is decentralized. Each node in the network has a copy of the entire blockchain, and all changes must be agreed upon by the network.

2. Immutability: Once data is recorded on the blockchain, it is extremely difficult to alter. This makes blockchain an excellent tool for maintaining a trustworthy record of transactions.

3. Transparency: All transactions recorded on the blockchain are visible to all participants in the network, which ensures transparency and reduces the potential for fraud.

4. Security: Blockchain uses cryptographic techniques to secure data, making it resistant to hacking and unauthorized access.

Common Applications of Blockchain:

• Cryptocurrencies: Blockchain is the underlying technology for cryptocurrencies like Bitcoin and Ethereum, where it is used to record all transactions.

• Smart Contracts: Blockchain can be used to execute “smart contracts,” which are self-executing contracts with the terms of the agreement directly written into code.

• Supply Chain Management: Blockchain can track the movement of goods in a supply chain, providing an immutable record of the product’s journey.

• Voting Systems: Blockchain can be used to create secure, transparent, and tamper-proof voting systems.

Blockchain is often praised for its potential to revolutionize industries by providing a more secure and transparent way of handling data and transactions.