Blockchain technology has revolutionized the way we think about data storage and transactions. At its core, a blockchain is a decentralized 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 of Blockchain
Decentralization: Unlike traditional ledgers that are maintained by a single entity, blockchain is maintained by a network of computers, making it more resistant to hacking.
Transparency: All transactions are recorded on the blockchain and can be viewed by anyone on the network.
Immutability: Once a transaction is recorded on the blockchain, it cannot be altered.
Security: Blockchain uses advanced cryptography to secure transactions and data.
How Blockchain Works
- Transaction: A transaction is created and broadcast to the network.
- Block: The transaction is grouped with other transactions and forms a block.
- Consensus: The network reaches a consensus on the validity of the block.
- Mining: Miners add the block to the blockchain and receive a reward.
- Confirmation: Once the block is added, the transaction is considered confirmed.
Use Cases of Blockchain
- Cryptocurrencies: Bitcoin, Ethereum, and other cryptocurrencies are based on blockchain technology.
- Smart Contracts: Self-executing contracts with the terms directly written into lines of code.
- Supply Chain: Blockchain can be used to track the movement of goods and services from production to delivery.
For more information on blockchain technology, visit our blockchain resources page.