What is Blockchain?
Blockchain is a decentralized and distributed digital ledger technology that records transactions across many computers in such a way that the registered transactions cannot be altered retroactively. This ensures the security, transparency, and integrity of data. Each block in the blockchain contains a list of transactions, and once a block is filled, it is added to the chain in a linear, chronological order. This technology underpins cryptocurrencies like Bitcoin but has far-reaching applications beyond digital currencies.
Key Features of Blockchain
- Decentralization: Unlike traditional databases that are controlled by a central authority, blockchain operates on a peer-to-peer network. This reduces the risk of centralized failure and enhances security.
- Transparency: All transactions on the blockchain are visible to participants in the network. This transparency can help build trust among users.
- Immutability: Once a transaction is recorded on the blockchain, it cannot be changed or deleted. This feature is crucial for maintaining the integrity of the data.
- Security: Blockchain uses cryptographic techniques to secure data. The decentralized nature also makes it more resistant to hacking.
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