What is blockchain technology?

Blockchain Technology: A Simplified Explanation

Blockchain is a type of distributed database that stores information in blocks linked together using cryptography. This creates an immutable, transparent, and decentralized ledger for recording transactions and tracking assets.

Key Characteristics of Blockchain:

* Decentralized: No single entity controls the blockchain. It's distributed across a network of computers.
* Immutable: Once data is recorded, it cannot be altered or deleted. This ensures transparency and trust.
* Secure: Cryptography is used to protect the data and verify the authenticity of transactions.
* Transparent: All transactions are recorded and visible to everyone on the network.

How Does it Work?

1. Transactions: When a transaction occurs, it's verified and bundled with other transactions into a block.
2. Block Creation: Each block contains a cryptographic hash of the previous block, creating a chain of blocks.
3. Consensus: The network of computers validates and agrees on the new block before it's added to the chain.
4. Immutability: Altering a block would require changing all subsequent blocks, making it computationally infeasible.

Real-world Applications:
* Cryptocurrencies: Bitcoin, Ethereum, and others use blockchain to record transactions.
* Financial Services: Blockchain can streamline payments, trade settlements, and supply chain management.
* Healthcare: Securely storing medical records and managing supply chains.
* Government: Voting systems, land registries, and identity management.
* Supply Chain: Tracking the movement of goods and ensuring authenticity.

Would you like to know more about specific blockchain applications or how it differs from traditional databases?