What is Blockchain Technology?

Blockchain technology is a decentralized digital ledger system that allows data to be stored across a network of computers, ensuring transparency, security, and immutability. Each "block" in the blockchain contains a list of transactions, and these blocks are linked together in chronological order, forming a "chain." The unique aspect of blockchain is that once data is recorded, it cannot be altered without the consensus of the network participants. This technology is the backbone of cryptocurrencies like Bitcoin but has applications beyond finance, including supply chain management, healthcare, and voting systems. The process begins with a transaction that gets verified by network nodes through cryptography, after which it is added to the chain. The decentralized nature prevents any single point of failure and makes the system resistant to fraud. Furthermore, blockchain operates on consensus mechanisms, such as Proof of Work (PoW) or Proof of Stake (PoS), which secure the network and validate transactions. Ultimately, blockchain’s ability to provide a tamper-proof record of transactions has the potential to revolutionize how data is managed and shared across industries.