WHAT IS BLOCKCHAIN?👇
Blockchain is a type of distributed ledger technology that records data across a network of computers in a secure, transparent, and tamper-resistant way. It was originally developed to support cryptocurrencies like Bitcoin, but its applications have since expanded to many other fields.
Here's how it works in simple terms:
1. Data is stored in blocks: Each block contains a group of transactions or records.
2. Blocks are linked: Each block is linked to the previous one using cryptographic hashes, forming a "chain" — hence, blockchain.
3. Decentralized network: Instead of being stored on a central server, the blockchain is distributed across many computers (called nodes).
4. Consensus mechanism: Before a new block is added, the network agrees (reaches consensus) that the data is valid. Popular mechanisms include Proof of Work (PoW) and Proof of Stake (PoS).
5. Immutable: Once data is added, it’s very hard to change without altering all subsequent blocks, which makes it highly secure.