Blockchain technology is revolutionizing the way we think about data storage and security. 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 Concepts

  • Decentralization: Unlike traditional databases, blockchain doesn't rely on a central authority. This decentralization makes blockchain resistant to hacking and censorship.
  • Immutability: Once data is recorded on the blockchain, it cannot be altered or deleted.
  • Transparency: All transactions are visible to everyone on the network, which adds a layer of trust.

How it Works

A blockchain is made up of blocks, which are groups of transactions. Each block contains a unique code called a hash, which links it to the previous block. This creates a chain of blocks, hence the name "blockchain."

Use Cases

  • Cryptocurrencies: Bitcoin and Ethereum are the most well-known examples.
  • Smart Contracts: These are self-executing contracts with the terms of the agreement directly written into lines of code.
  • Supply Chain Management: Blockchain can be used to track the movement of goods from their origin to the final consumer.

Blockchain Diagram

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