BLOCKCHAIN WORKING
Blockchain is a decentralized and distributed digital ledger technology used to securely record transactions across multiple computers. It enables data to be stored in a way that makes it tamper-resistant, transparent, and immutable. Here's how it works:
1. Blocks: A blockchain consists of a series of blocks. Each block contains a list of transactions or data, along with a timestamp and a cryptographic hash of the previous block, forming a chain.
2. Decentralization: Unlike traditional centralized databases, blockchain is decentralized. Multiple participants (nodes) maintain their copies of the blockchain, ensuring no single point of failure.
3. Consensus Mechanism: Before a new block is added, a consensus mechanism ensures that all participants in the network agree on the validity of the transactions. Common consensus mechanisms include Proof of Work (PoW) and Proof of Stake (PoS).
4. Cryptography: Blockchain uses cryptographic techniques to secure data. Each block contains a cryptographic hash of the previous block, ensuring that once data is added to the chain, it cannot be altered without changing every subsequent block, which is computationally infeasible.
5. Immutability: Once a block is added to the blockchain, it becomes very difficult to alter the data within it. This feature ensures the integrity and security of the information.
6. Transparency: All transactions are visible to participants on the blockchain, which provides transparency. However, the identities involved in the transactions can remain pseudonymous or anonymous.
Blockchain is used in various applications like cryptocurrency (e.g., Bitcoin, Ethereum), supply chain management, voting systems, and even in smart contracts.
