Blockchain Technology

Blockchain technology is a decentralized and distributed digital ledger system that records transactions across multiple computers in such a way that the registered transactions cannot be altered retroactively. Each block in a blockchain contains a set of transactions and is linked to the previous block through cryptographic hashes, forming a chain of blocks. This technology underpins cryptocurrencies like Bitcoin and Ethereum, enabling secure, transparent, and tamper-proof transactions without the need for intermediaries. Beyond cryptocurrencies, blockchain is used in various applications, including supply chain management, voting systems, and digital identity verification.

Example

Bitcoin uses blockchain technology to maintain a public ledger of all transactions, ensuring that every transaction is verified by network participants (miners) and permanently recorded in a block.

Key points

• A decentralized, distributed digital ledger system.

• Ensures secure, transparent, and immutable transactions.

• Used in cryptocurrencies and various other applications like supply chain management and digital identity.

Quick Answers to Curious Questions

How does blockchain technology ensure transaction security?

Transactions are verified by a network of computers and recorded in blocks that are cryptographically linked, making it extremely difficult to alter past transactions.

What are some non-cryptocurrency uses of blockchain?

Blockchain is used in supply chain management, voting systems, healthcare, digital identity verification, and more.

Why is blockchain considered tamper-proof?

Because each block is linked to the previous one through a cryptographic hash, altering a single block would require changing all subsequent blocks, which is practically impossible in a decentralized network.