What is Blockchain?

Blockchain is a decentralized, digital ledger that records transactions across a network of computers. It's the underlying technology behind cryptocurrencies like Bitcoin and Ethereum, but its applications extend far beyond digital currency. Here's how it works: 1. *Decentralized network*: A network of computers is established, each with a copy of the blockchain. 2. *Transactions occur*: When a new transaction is made, it's broadcast to the network. 3. *Verification*: The transaction is verified by special nodes on the network called miners. 4. *Block creation*: A group of verified transactions is combined into a block. 5. *Chain update*: Each node on the network updates its copy of the blockchain with the new block. 6. *Consensus*: The nodes on the network agree on the state of the blockchain, ensuring its integrity. Key characteristics of blockchain: 1. *Immutable*: The blockchain is an immutable record, meaning once a transaction is written, it can't be altered. 2. *Transparent*: All transactions on the blockchain are visible to anyone on the network. 3. *Decentralized*: The blockchain is maintained by a network of computers, rather than a single central authority. 4. *Consensus-driven*: The nodes on the network work together to validate transactions and update the blockchain. Blockchain has many applications beyond cryptocurrency, including: 1. *Supply chain management*: Tracking goods and materials through the supply chain. 2. *Smart contracts*: Self-executing contracts with the terms of the agreement written directly into lines of code. 3. *Identity verification*: Securely storing and managing identity documents. 4. *Healthcare*: Securely storing and managing medical records. Blockchain technology has the potential to transform many industries and aspects of our lives.