Blockchain is a decentralized, distributed digital ledger technology that records transactions or data across a network of computers in a way that is secure, transparent, and resistant to tampering. Data is grouped into “blocks,” and each block is cryptographically linked to the previous one, forming a chronological “chain” that is nearly impossible to alter retroactively without the consensus of the network.
How Blockchain Works
• Each block contains transaction data, a timestamp, and a cryptographic hash of the previous block.
• New transactions are grouped into blocks, which are validated by the network through consensus mechanisms before being added to the chain.
• Once a block is added, altering any information within it would require changing all subsequent blocks and gaining agreement from the majority of the network, making fraud or tampering extremely difficult.
Key Features
• Decentralization: No single entity controls the blockchain; all participants share access and control.
• Immutability: Once data is recorded, it cannot be changed or deleted without network consensus, ensuring a permanent and tamper-resistant record.
• Transparency: All transactions are visible to network participants, promoting accountability and trust.
• Security: Cryptographic techniques protect the integrity and authenticity of data.
Common Uses
• Cryptocurrencies: Blockchain is the foundational technology behind digital currencies like Bitcoin and Ethereum, enabling secure, peer-to-peer transactions without intermediaries.
• Supply Chain Management: Used to track assets and verify the origin and movement of goods.
• Healthcare, Voting, and More: Blockchain is being explored for securely managing medical records, digital identities, voting systems, and other applications where data integrity and transparency are critical.