🪙What is Blockchain?
A blockchain is a decentralized digital ledger that records transactions across many computers. It is
transparent, secure, and nearly impossible to alter once information is added.
🚦How Blockchain Works - Step by Step
1. Transaction Happens: Someone initiates a transaction (e.g., sending cryptocurrency).
2. Transaction is Broadcast: It is shared with the network of nodes (computers).
3. Validation: Nodes verify the transaction using a consensus mechanism.
4. Block Creation: Verified transactions are grouped into a block.
5. Block Added to Chain: The new block is added to the existing blockchain.
6. Permanent Record: All nodes update their copy of the blockchain.
🚦Consensus Mechanisms
- Proof of Work (PoW): Solving complex puzzles to validate transactions (used by Bitcoin).
- Proof of Stake (PoS): Validators are chosen based on how much crypto they hold and are willing to 'stake'
(used by Ethereum 2.0).
🚦Real-World Analogy
Blockchain is like a shared Google Doc where everyone can see and add information, but no one can erase
past data. Every edit is recorded and timestamped.
🚦Uses of Blockchain
- Cryptocurrencies (e.g., Bitcoin, Ethereum)
- Smart Contracts & Decentralized Apps (dApps)
- Supply Chain Management
- Voting Systems
- NFTs & Digital Ownership.
🚦Why Blockchain Matters
- Security: Tamper-proof records
- Transparency: Publicly verifiable
- Decentralization: No middlemen
- Global Access: Anyone can participate.
