A #blockchain is a technology that allows records to be stored and managed in a decentralized and secure way. You can see a simplified overview of how it works:
Basic structure: A blockchain is basically a list of blocks of data linked to each other chronologically. Each block contains a set of transactions or other types of data. Each block is identified by a hash (a digital fingerprint) which depends on the contents of the block and the hash of the previous block.
Decentralized Network: Blockchain operates on a network of distributed nodes that cooperate to validate and store data. Each node has a complete copy of the blockchain and participates in the consensus process to ensure that all nodes agree on the state of the blockchain.
Consensus: To reach consensus on the state of the blockchain, nodes use different consensus mechanisms, such as Proof of Work or Proof of Stake. These mechanisms allow nodes to agree on adding new blocks to the blockchain and resolve any conflicts.
Transaction validation: Before a transaction is added to a block, it must be validated by the network nodes. This involves verifying the authenticity of the transaction, the availability of funds, and ensuring that the transaction follows the rules defined by the blockchain protocol.
Immutability: Once a block is added to the blockchain, it is generally considered immutable. This means that data recorded in a block cannot be changed retroactively without the consensus of the majority of nodes. Blockchain security relies on the fact that changing one block would require changing all subsequent blocks, which becomes extremely difficult.
Cryptography: Blockchain uses cryptographic techniques to secure data and transactions. This includes the use of digital signatures to verify the authenticity of transactions, hashes to link blocks, and cryptographic keys to control access to data.
By combining these principles, the blockchain creates a transparent, decentralized, secure and censorship-resistant system. It is used in many fields such as supply chain management, financial services, smart contracts and many more. You can find more information in #BinanceAcademy