What is Blockchain?
Blockchain is a type of distributed ledger technology (DLT) that allows data to be stored across a network of computers in a secure, transparent, and immutable manner. Each set of transactions is recorded in a “block,” and these blocks are linked together chronologically to form a “chain.” This design makes blockchain technology resistant to tampering and fraud, as altering any information in a block would require changes to all subsequent blocks and the consensus of the entire network.
Originally developed as the underlying technology for Bitcoin, blockchain has since been adopted in various industries beyond finance, such as supply chain management, healthcare, and real estate. The technology’s decentralized nature eliminates the need for intermediaries, allowing parties to transact directly with each other. Every transaction is verified by network participants (also known as nodes) through a consensus mechanism, such as Proof of Work (PoW) or Proof of Stake (PoS).
One of blockchain’s core features is its transparency. All participants can view the transaction history, ensuring accountability and reducing the risk of fraud. Additionally, the immutability of blockchain ensures that once data is recorded, it cannot be altered without altering the entire network. This feature is particularly useful for maintaining accurate records and verifying ownership in digital assets.
Blockchain technology has paved the way for the creation of cryptocurrencies, decentralized applications (dApps), and smart contracts, revolutionizing how digital transactions are conducted. As a result, it has become a cornerstone technology for many innovative applications.
