Blockchain technology is a revolutionary innovation that has the potential to disrupt various industries. 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 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 the data is secure and tamper-proof.
  • Immutability: Once data is entered into the blockchain, it cannot be altered.

How Blockchain Works

  1. Transactions: When a transaction occurs, it is broadcasted to the network.
  2. Blocks: The transaction is grouped with other transactions into a block.
  3. Mining: Miners validate the transactions and add the block to the blockchain.
  4. Consensus: The network reaches a consensus on the validity of the block.

Use Cases of Blockchain

  • Financial Services: Cryptocurrencies like Bitcoin are built on blockchain technology.
  • Supply Chain: Blockchain can be used to track the movement of goods and ensure transparency.
  • Voting Systems: It can provide a secure and transparent voting system.

Blockchain Diagram

For more information on blockchain, you can read our detailed guide on Blockchain Basics.