Blockchain is a technology that underlies digital currencies like Bitcoin, but it can be used for more than just money. Let's explain everything simply and step by step.
Imagine a notebook, but digital
Imagine a regular notebook where you record all transactions — who transferred what to whom, when, and for how much. This notebook:
It is not stored by one person, but immediately by all participants in the network.
It is impossible to forge records in it — if someone tries to change even one line, it will be immediately noticeable to everyone.
Records are made in order and remain in history forever.
This is what a 'digital notebook' is — blockchain.
Why is it called blockchain?
The word blockchain consists of two parts: block and chain.
All data (for example, about money transfers) is collected into blocks.
These blocks are linked in a chain — each block knows what was before it and refers to it.
If someone tries to change one block, the entire chain will be disrupted — and the network will notice it.
How blockchain works — step by step
An event occurs, for example, someone transfers money.
The network checks whether the sender really has money.
A block is created in which this event is recorded.
A block is added to the chain and distributed to all participants.
Information can no longer be changed — it is permanently recorded.
Who controls the blockchain?
No one and yet everyone. It is a decentralized system — it operates without a single center or boss. The community of users decides everything, not one company or bank.
Where is blockchain used, besides cryptocurrencies?
Although the technology became known due to Bitcoin, it can be applied in various fields:
Banks — for fast and transparent transfers.
Logistics — to track the path of goods from the factory to the store.
Voting — to protect against falsifications.
Documents — to prove authenticity and creation date
Advantages of blockchain
Transparency — everyone can see what is happening.
Security — data is difficult to hack.
Reliability — information is preserved forever.
Disadvantages
Speed — blockchain can be slower than regular databases.
Energy costs — especially for cryptocurrencies that require a lot of computations.
The complexity of implementation — it is not always easy to integrate into existing systems.
In two words
Blockchain is a reliable way to store information that is protected from forgery, accessible to all participants, and does not depend on a single owner. It is a technology of the future that is already beginning to change our world.
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