Learn the basics of blockchain technology, the backbone of cryptocurrencies, and how it ensures secure and transparent transactions.
What is Blockchain?
Blockchain is a decentralized digital ledger that records transactions across many computers. Its design makes it nearly impossible to alter past records, ensuring security and transparency.
How Blockchain Works
Transactions are grouped into blocks. Each block contains a cryptographic hash of the previous block, timestamp, and transaction data, linking blocks in a chain.
Consensus Mechanisms
To add new blocks, network participants use consensus algorithms like Proof of Work (PoW) or Proof of Stake (PoS) to agree on the blockchain’s state.
Advantages of Blockchain
- Decentralization: No single authority controls the data.
- Security: Cryptographic hashes and consensus prevent fraud.
- Transparency: All transactions are publicly accessible.
- Immutability: Data once written cannot be changed.
Use Cases Beyond Cryptocurrency
Blockchain is used in supply chain, healthcare, voting systems, and more, proving its versatility beyond digital currencies.
Blockchain technology is a revolutionary innovation enabling secure, transparent, and decentralized systems across industries.
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