Blockchain is a distributed and decentralized ledger technology that securely records transactions across multiple computers. It consists of a chain of blocks, where each block contains a set of transactions. These blocks are cryptographically linked, ensuring data integrity and making it nearly impossible to alter previous records.
The key features of blockchain include:
Decentralization: No single authority controls the data.
Transparency: All participants can view the transactions.
Security: Cryptographic techniques make data tamper-resistant.
How is Blockchain Linked to Cryptocurrency?
Blockchain forms the backbone of most cryptocurrencies, such as Bitcoin and Ethereum. Here's how they are connected:
Transaction Verification:
Blockchain provides a platform where cryptocurrency transactions are recorded and verified without the need for intermediaries, such as banks.
Immutable Records:
Once a cryptocurrency transaction is recorded on the blockchain, it cannot be altered or deleted, ensuring trust and transparency.
Decentralized Ledger:
The blockchain ledger is maintained by a network of nodes (computers) that work together, making cryptocurrencies resistant to censorship or fraud.
Smart Contracts (in some blockchains like Ethereum):
Blockchain enables automated, self-executing contracts with predefined terms, enhancing the functionality of cryptocurrencies.
Applications Beyond Cryptocurrency
Blockchain isn't limited to cryptocurrencies—it has applications in various industries, including:
Supply Chain Management: Tracking goods in real time.
Healthcare: Managing patient records securely.
Finance: Enabling faster and more secure cross-border payments.
Identity Management: Protecting digital identities from fraud.
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