What is Blockchain Technology? A Simple Explanation
Blockchain is a type of digital ledger that stores information in a secure and transparent way. Instead of keeping data in one central location, blockchain distributes it across a network of computers. This makes it extremely difficult to change or hack the information once it has been recorded.
Blocks: Data is stored in small units called ‘blocks’.
Chain: Each block is linked to the previous one, forming a chain.
Decentralized Network: The data is not controlled by a single entity. Instead, many computers (called nodes) verify the information.
Immutability: Once a block is added, it cannot be altered, ensuring high security.
High Security: Data cannot be easily tampered with.
Transparency: Everyone on the network can see the transactions.
Efficiency: Faster and cheaper compared to traditional systems.
Trustless Transactions: No need for a middleman like a bank.
Cryptocurrencies such as Bitcoin, Ethereum
Supply chain management
Banking and finance
Healthcare records
Voting systems
Digital identity
Blockchain technology is rapidly shaping the future of digital transactions and data management. Understanding its basics helps individuals and businesses prepare for a more secure and transparent digital world.
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