What is Blockchain?

Blockchain is a decentralized, digital ledger that records transactions across multiple computers securely and transparently. It is designed to be tamper-proof, meaning once data is recorded, it cannot be altered without consensus from the network.

How Does Blockchain Work?

1. Transactions are Recorded

When a transaction (e.g., sending Bitcoin) occurs, it is grouped with other transactions into a "block."

2. Verification by Nodes

The network (a group of computers called "nodes") verifies the transaction using consensus mechanisms like Proof of Work (PoW) or Proof of Stake (PoS).

3. Block is Added to the Chain

Once verified, the block is added to the blockchain in a linear and chronological order. Each block contains:

• Transaction data
• A timestamp
• A cryptographic hash (unique digital fingerprint) of the previous block

4. Decentralized & Secure

Because blockchain is decentralized (no single authority controls it), hacking or altering data is nearly impossible without controlling more than 50% of the network, which is highly impractical.

Key Features of Blockchain:

Decentralization – No central authority (banks, governments) controls it.
Immutability – Once recorded, data cannot be changed.
Transparency – Public blockchains allow anyone to verify transactions.
Security – Uses cryptography to protect data.