Blockchain is a decentralized digital ledger that records transactions across multiple computers in a way that ensures security and transparency. Unlike traditional databases controlled by a single entity, blockchain operates on a peer-to-peer network where every participant maintains a copy of the ledger.
Each transaction is grouped into a “block,” which is then cryptographically linked to the previous block, forming a chain—hence the name “blockchain.” This structure makes altering past records nearly impossible without consensus from the majority of the network.
A key feature of blockchain is its use of consensus mechanisms, such as Proof of Work (PoW) or Proof of Stake (PoS), to validate transactions. These mechanisms prevent fraud by requiring network participants to solve complex mathematical problems or stake their own assets to confirm new blocks.
Because there is no central authority, blockchain reduces the risk of censorship and single points of failure. This decentralization is what makes it appealing for applications beyond just cryptocurrencies, such as supply chain tracking and digital identity verification.
Security is further reinforced through cryptographic hashing, which converts transaction data into a fixed-length string of characters. Any minor change in the input data drastically alters the hash, making tampering easily detectable.
Public blockchains, like those used for Bitcoin and Ethereum, are open for anyone to participate in, while private blockchains restrict access to authorized users. Both models have their own trade-offs in terms of transparency, speed, and control.
By eliminating intermediaries and enabling trustless transactions, blockchain has the potential to revolutionize industries ranging from finance to healthcare. However, challenges like scalability and energy consumption remain hurdles for widespread adoption.Blockchain is a decentralized digital ledger that records transactions across multiple computers in a way that ensures security and transparency. Unlike traditional databases controlled by a single entity, blockchain operates on a peer-to-peer network where every participant maintains a copy of the ledger.
Each transaction is grouped into a “block,” which is then cryptographically linked to the previous block, forming a chain—hence the name “blockchain.” This structure makes altering past records nearly impossible without consensus from the majority of the network.
A key feature of blockchain is its use of consensus mechanisms, such as Proof of Work (PoW) or Proof of Stake (PoS), to validate transactions. These mechanisms prevent fraud by requiring network participants to solve complex mathematical problems or stake their own assets to confirm new blocks.
Because there is no central authority, blockchain reduces the risk of censorship and single points of failure. This decentralization is what makes it appealing for applications beyond just cryptocurrencies, such as supply chain tracking and digital identity verification.
Security is further reinforced through cryptographic hashing, which converts transaction data into a fixed-length string of characters. Any minor change in the input data drastically alters the hash, making tampering easily detectable.
Public blockchains, like those used for Bitcoin and Ethereum, are open for anyone to participate in, while private blockchains restrict access to authorized users. Both models have their own trade-offs in terms of transparency, speed, and control.
By eliminating intermediaries and enabling trustless transactions, blockchain has the potential to revolutionize industries ranging from finance to healthcare. However, challenges like scalability and energy consumption remain hurdles for widespread adoption.