A blockchain is a digital, distributed, and decentralized ledger that records transactions across many computers, ensuring transparency, security, and immutability. It’s a way to store information in blocks that are chained together chronologically, making it difficult to alter or delete data without consensus from the network.
Here’s a more detailed explanation:
- Decentralized and Distributed:Unlike traditional databases controlled by a single entity, a blockchain is distributed across multiple computers (nodes) in a network.
- Immutable:Once a transaction is recorded on a blockchain, it cannot be altered or deleted, making it a secure and reliable record.
- Transparent:All transactions on a public blockchain are visible to all participants, promoting transparency and trust.
- Consensus Mechanism:A consensus mechanism ensures that all participants agree on the validity of transactions before they are added to the blockchain.
- Blocks and Chains:Transactions are grouped into blocks, and these blocks are linked together chronologically to form a chain.
- Cryptographic Hashing:Each block contains a cryptographic hash of the previous block, creating a secure and tamper-proof chain.
- Applications:Blockchain technology is used in various applications beyond cryptocurrencies, including supply chain management, healthcare, and digital identity.