Blockchain is a decentralized digital ledger that securely stores information across a network of computers. It organizes data into "blocks," which are linked together in a chronological chain using cryptographic hashes, making the data immutable and resistant to tampering. This structure allows transactions or records to be recorded transparently and securely without the need for a central authority or trusted third party, as all participants in the network collectively maintain control and verify the data's validity.
How Blockchain Works:
- Information or transactions are grouped into blocks.
- Each block contains a cryptographic hash of the previous block, linking the chain together.
- Once a block is filled with data, it is verified through consensus mechanisms by multiple participants (nodes) in the decentralized network.
- After verification, the block is added to the existing chain, and the updated ledger is shared with all participants.
- Because any change to a block would alter its hash and break the chain, blockchain provides strong security and immutability.
- This design solves problems such as double-spending in digital currency and reduces the need for intermediaries.
In simpler terms, blockchain is like a shared, unchangeable digital workbook distributed on many computers, where entries in the workbook are permanent once agreed upon, enhancing transparency and trust in various applications from cryptocurrencies to supply chains and beyond.
