What Is Blockchain?
Blockchain is a secure, decentralized digital ledger that records transactions across many computers. It’s tamper-proof, transparent, and doesn’t need a middleman like a bank.
How It Works:
1. A transaction (e.g., sending cryptocurrency) is broadcast to a network.
2. Computers (nodes) verify it using rules.
3. Verified transactions form a block with a unique code (hash).
4. Blocks link to form a chain, secured by cryptography.
5. Nodes agree on validity using methods like Proof of Work or Proof of Stake.
Why It’s Secure:
- Cryptography locks data.
- Decentralization prevents single-point hacks.
- Once added, data can’t be changed easily.
Uses:
- Cryptocurrencies ($BTC Bitcoin, $ETH Ethereum)
- Smart contracts (self-running agreements)
- Supply chain tracking
- Secure digital IDs
- Fraud-proof voting
Why It Matters:
Blockchain makes transactions faster, cheaper, and trustworthy, transforming finance, supply chains, and more.