Blockchain technology has revolutionized the way we think about data storage and transactions. It 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 databases, blockchain does not rely on a single central authority.
- Transparency: All transactions are recorded on a public ledger, which can be viewed by anyone.
- Immutability: Once data is entered into the blockchain, it cannot be altered or deleted.
- Security: The blockchain uses cryptographic techniques to secure transactions.
How Blockchain Works
- Transactions: A transaction is a record of a financial exchange between two parties.
- Blocks: Transactions are grouped into blocks.
- Chaining: Each block contains a hash of the previous block, creating a chain.
- Mining: Miners validate and add new blocks to the blockchain.
Use Cases of Blockchain
- Financial Transactions: Cryptocurrencies like Bitcoin and Ethereum use blockchain technology.
- Supply Chain Management: Blockchain can track and verify the movement of goods and services.
- Voting Systems: It can provide secure and transparent voting systems.
- Intellectual Property: It can be used to register and protect intellectual property rights.
Blockchain Diagram
For more information on blockchain, you can visit our blockchain tutorial.