Understanding Blockchain: Simplified Explanation

Imagine a digital ledger where every transaction is recorded transparently and securely. This is essentially what blockchain technology does. Blockchain is a system that allows information to be stored in a series of blocks, which are linked together in a chain. Each block contains a list of transactions, and once a block is filled with transactions, it's added to the chain in a chronological order.

This chain of blocks is distributed across a network of computers, ensuring that everyone on the network has the same record. Because the information is distributed and not stored in a single location, it is much harder to tamper with. Every time a new block is added, it must be verified by the network participants, which adds another layer of security.

In essence, blockchain provides a decentralized and transparent way to record and verify transactions. It's most famously known for being the technology behind cryptocurrencies like Bitcoin, but its applications go far beyond that, including supply chain management, voting systems, and more. By ensuring that records are immutable and verifiable, blockchain technology helps to prevent fraud and increase trust in digital transactions.