Blockchain is the technology that powers cryptocurrency, but it’s much more than that. It’s a decentralized, digital ledger that records transactions and data across a network of computers. This provides a secure and transparent method for storing and transferring data.
So, how does it work? Here’s a simplified explanation:
- Blocks: A block is a collection of transactions or data.
- Chain: The blocks are linked together in a chain, with each block containing a unique code called a “hash” that connects it to the previous block.
- Network: The blockchain is stored on a network of computers, making it decentralized and secure.
Blockchain has many uses beyond cryptocurrency, including:
- Supply chain management: Companies can use blockchain to track products and materials throughout their supply chain.
- Smart contracts: Blockchain can be used to create self-executing contracts with the terms of the agreement written directly into lines of code.
- Identity verification: Blockchain can be used to create secure and decentralized identity verification systems.
The potential uses of blockchain are vast, and it’s an exciting time to be involved in the space.
