A blockchain is a decentralized, distributed digital ledger that records transactions across many computers in a way that makes it nearly impossible to alter retroactively. Each "block" contains a batch of transactions, and blocks are cryptographically linked together in a "chain."
How It Works
When a transaction is initiated, it is broadcast to a network of nodes. These nodes validate the transaction using consensus mechanisms (like Proof of Work or Proof of Stake). Once validated, the transaction is grouped with others into a block and added to the chain permanently.
Key Features
Immutability: Once data is recorded, it cannot be easily changed without altering all subsequent blocks.
Transparency: All transactions are publicly visible on the blockchain.
Decentralization: No single point of failure — the ledger is maintained by thousands of nodes.
Security: Cryptographic hashing ensures data integrity.
Beyond Cryptocurrency
While blockchain technology was originally created for Bitcoin, it has since been applied to supply chain management, voting systems, identity verification, healthcare records, and much more.