What is Blockchain?
Blockchain is a method of recording information in a manner that resists alteration, hacking, or manipulation. It's like a digital ledger for transactions, and it's designed to be shared and stored across a network of computers.
Here's a breakdown of its key aspects:
Digital Ledger: Think of blockchain as a digital ledger that contains records of transactions. Each "block" in the chain holds several transactions. Whenever a new transaction happens, it's added to every participant's copy of the ledger.
Decentralization: The ledger isn't controlled by one entity; it's distributed across multiple computers. This is known as Distributed Ledger Technology (DLT). Decentralization enhances security and eliminates the need for a central authority.
Immutable Transactions: Transactions in a blockchain are recorded with an unchangeable cryptographic signature known as a "hash." If someone tries to alter a transaction, it becomes evident that the chain has been tampered with. To compromise the system, a hacker would need to modify every block in every copy of the chain, which is practically impossible.
Growing Security: Blockchains, like Bitcoin and Ethereum, constantly expand as new blocks are added. This continuous growth enhances the integrity of the ledger.
Here's a breakdown of its key aspects:
Digital Ledger: Think of blockchain as a digital ledger that contains records of transactions. Each "block" in the chain holds several transactions. Whenever a new transaction happens, it's added to every participant's copy of the ledger.
Decentralization: The ledger isn't controlled by one entity; it's distributed across multiple computers. This is known as Distributed Ledger Technology (DLT). Decentralization enhances security and eliminates the need for a central authority.
Immutable Transactions: Transactions in a blockchain are recorded with an unchangeable cryptographic signature known as a "hash." If someone tries to alter a transaction, it becomes evident that the chain has been tampered with. To compromise the system, a hacker would need to modify every block in every copy of the chain, which is practically impossible.
Growing Security: Blockchains, like Bitcoin and Ethereum, constantly expand as new blocks are added. This continuous growth enhances the integrity of the ledger.
Updated on: 09/08/2023
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