Blockchain technology, often referred to as the backbone of cryptocurrencies, is a decentralized digital ledger that records transactions across many computers so that the record cannot be altered retroactively without the alteration of all subsequent blocks and the consensus of the network.
Key Features
- Decentralization: Unlike traditional banking systems, blockchain operates without a central authority.
- Transparency: All transactions are recorded on a public ledger, ensuring transparency.
- Security: The blockchain is secured by cryptographic algorithms, making it nearly impossible to hack.
- Immutability: Once data is entered into the blockchain, it cannot be altered or deleted.
How It Works
- Blocks: Each block contains a list of transactions.
- Chain: Blocks are linked in a chain, forming the blockchain.
- Miners: Miners validate and add new blocks to the blockchain.
Use Cases
- Cryptocurrencies: Bitcoin and Ethereum are the most famous examples.
- Smart Contracts: Automating contracts without the need for intermediaries.
- Supply Chain Management: Tracking goods and products through the supply chain.
- Voting Systems: Ensuring secure and transparent elections.
Blockchain Diagram
For more information on blockchain technology, check out our blockchain tutorial.