Blockchain

What Is Blockchain?

A blockchain is a decentralized digital ledger that records transactions across a network of computers (called nodes ). It’s the backbone technology for most cryptocurrencies, ensuring that data is secure, transparent, and can’t be altered after it’s been recorded.

Think of the blocks as pages in a notebook (the blockchain). Each page (block) contains a list of transactions, like who sent coins to whom. The chain links all the pages together in the order they were written, creating a chronological timeline of transactions. Every time a new transaction is added, it's recorded on all the nodes (computers in the network). To hack the system, you would have to alter all the nodes at the same time, which is virtually impossible (though, of course, never say never...).

How It Works

• Blocks: Transactions are grouped into blocks. Once a block is full, it’s added to a chain of previous blocks, creating a permanent record.
• Decentralization: No single entity controls the blockchain. Instead, a network of computers verifies and records transactions, ensuring trust without a central authority.
• Immutability: Once data is added to the blockchain, it’s nearly impossible to change, which helps prevent fraud and tampering.

Example

When you send Bitcoin to someone, that transaction is verified and added to the Bitcoin blockchain. All users can see it, but no one can alter it.

Key Takeaways

• A blockchain is a secure, decentralized ledger that records transactions.
• It’s maintained by a global network of computers ( nodes ), making it tamper-proof and transparent.
• Blockchain is the technology behind cryptocurrencies like Bitcoin, but it has many other potential uses beyond that.

In summary, blockchain is a revolutionary technology that enables trust and transparency without the need for a middleman, and it’s transforming industries beyond just crypto.