Blockchain technology has been a game-changer in the digital world. It's a decentralized, secure, and transparent way to record transactions. Let's dive into the basics and explore how it works.
What is Blockchain?
A blockchain is a chain of blocks. Each block contains a list of transactions. Once a block is filled with transactions, it is added to the chain. The process is secure because each block contains a unique code that links it to the previous block, creating an immutable record of transactions.
How Does Blockchain Work?
- Decentralization: Unlike traditional banking systems, blockchain operates on a decentralized network. This means that no single entity has control over the entire system.
- Security: Transactions are secure due to advanced cryptography. Each transaction is encrypted, and the encryption keys are distributed across the network.
- Transparency: All transactions are recorded on the blockchain, making it easy to verify and audit.
Use Cases of Blockchain
- Cryptocurrency: The most famous use case of blockchain is cryptocurrencies like Bitcoin.
- Smart Contracts: These are self-executing contracts with the terms of the agreement directly written into lines of code.
- Supply Chain Management: Blockchain can help track and verify the origin of goods and products.
More to Explore
For a deeper understanding of blockchain, check out our blockchain tutorials.
Blockchain Diagram