Blockchain technology is considered one of the most impactful innovations of modern times. But what is blockchain and how does it work?
What is Blockchain?
Blockchain is a distributed database that records transactions in a secure and transparent manner. Data is organized in blocks connected to each other in a chain, preventing any unauthorized modification.
How does blockchain work?
When a transaction is made, it is sent to the network and collected into a new block. This transaction is verified by a group of computers known as "nodes." After verification, the block is added to the chain, making the transaction permanent and immutable.
Benefits of Blockchain:
1. Security: Due to the nature of encryption and the distributed structure, it is difficult to manipulate the data.
2. Transparency: All transactions are accessible to everyone, enhancing trust among users.
3. Efficiency: Transactions can be executed faster and at lower costs compared to traditional systems.
Uses of Blockchain:
While blockchain was initially associated with cryptocurrencies, its use extends to other fields such as:
- Smart contracts: which execute automatically when certain conditions are met.
- Supply chains: To enhance transparency and track products.
- Digital identity: to protect personal data and verify identity.