Blockchain technology is revolutionizing the way we conduct transactions and store data. It's 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 banking systems, blockchain operates without a central authority.
  • Transparency: All transactions are recorded on a public ledger, which can be viewed by anyone.
  • Security: The use of cryptographic techniques ensures that transactions are secure and tamper-proof.
  • Immutability: Once data is entered into the blockchain, it cannot be altered or deleted.

How Blockchain Works

  1. Transactions: When a transaction occurs, it is broadcast to the network.
  2. Blocks: Transactions are grouped into blocks.
  3. Consensus: Miners in the network compete to solve complex mathematical problems to add a new block to the blockchain.
  4. Chain: Once a block is added, it becomes part of the blockchain and cannot be altered.

Use Cases of Blockchain

  • Finance: Cryptocurrencies like Bitcoin and Ethereum are based on blockchain technology.
  • Supply Chain: Blockchain can be used to track the movement of goods and ensure their authenticity.
  • Voting Systems: It can enhance the security and transparency of voting systems.

Blockchain Diagram

For more information on blockchain technology, check out our blockchain tutorials.