#WriteToEarnWCT What is Blockchain Technology?
👉Blockchain is a decentralized, distributed ledger technology that records transactions across many computers in such a way that the registered transactions cannot be altered retroactively. It was originally developed to support the cryptocurrency Bitcoin, but its applications go far beyond digital currencies.
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Key Features:
1. Decentralization: No single central authority controls the data; instead, it is shared across a network of nodes.
2. Transparency: All participants can see the transactions stored in the blockchain, ensuring accountability.
3. Immutability: Once data is added to the blockchain, it cannot be changed or deleted, ensuring security and trust.
4. Consensus Mechanisms: Blockchain relies on algorithms like Proof of Work (PoW) or Proof of Stake (PoS) to validate transactions.
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How it Works:
1. A transaction is requested.
2. The transaction is broadcast to a peer-to-peer network of computers (nodes).
3. The network validates the transaction using a consensus algorithm.
4. Once validated, the transaction is combined with others to form a block.
5. The block is added to the existing chain of blocks (hence, "blockchain").
6. The transaction is complete and permanently recorded.
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Applications of Blockchain:
Cryptocurrencies (e.g., Bitcoin, Ethereum)
Smart Contracts (self-executing contracts)
Supply Chain Management
Healthcare Records
Voting Systems
Banking and Finance
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Conclusion:
Blockchain is transforming how data is stored and transactions are processed, promoting trust, efficiency, and security across various industries.
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