Blockchain is a type of digital ledger that securely records and stores information, such as transactions, across multiple computers. It’s the technology that powers cryptocurrencies like Bitcoin, but it’s also used for many other purposes.
How does blockchain work?
Decentralized system:
Instead of being controlled by one company or authority, blockchain is managed by a network of computers. Everyone in the network has a copy of the data.Secure and transparent:
Every transaction is recorded in a way that cannot be changed or deleted, and anyone can view the records for transparency.Blocks and chains:
Transactions are grouped into "blocks" and linked together to form a "chain." Each new block connects to the previous one, creating a secure history of all transactions.
Why is blockchain useful?
Security: Blockchain uses advanced encryption to keep data safe.
Transparency: All transactions are visible to the network, reducing fraud.
Efficiency: It removes the need for middlemen, making processes faster and cheaper.
Real-world uses of blockchain
Cryptocurrencies: Powering Bitcoin and other digital currencies.
Supply chains: Tracking goods from origin to delivery.
Healthcare: Safely storing and sharing patient records.
Voting: Creating secure and transparent election systems.
Blockchain is like a digital book that everyone can trust—no one can tamper with it, and everyone can see what's written inside.