Blockchain is an advanced technology that provides safe and open transactions over a network of computers by acting as a decentralised digital ledger. It functions by organising information into blocks, which are then joined by cryptographic hashes to create a chain of blocks that is structured chronologically hence why it's called "blockchain."
Every member, or node, in a blockchain network keeps a copy of the whole blockchain, improving security and maintaining data redundancy. A new transaction is broadcast to the network, added to a new block, and then verified by other network users using a consensus process like as Proof of Work (PoW) or Proof of Stake (PoS). After a block is added, it is cryptographically connected to the one before it, resulting in an unbreakable transaction record.
Blockchain technology offers a wide range of advantages. First off, because to its cryptographic protocols, blockchain provides increased security that makes it extremely resistant to fraud and hacking. The immutability of data kept on the blockchain prevents it from being changed or removed without the consent of the majority of network users.
Additionally, through providing an auditable and visible record of transactions, blockchain encourages accountability and transparency. Participants' trust is boosted by this openness, which also lowers the possibility of disagreements or fraud.
Furthermore, blockchain's decentralised structure provides resistance to censorship and single points of failure, making it a dependable and strong technology for a range of uses.
In general, blockchain technology provides a transparent, safe, and effective means of transferring and storing data. Its potential uses span a wide range of industries, including supply chain management, healthcare, and cryptocurrency.