Blockchain is a decentralized and digital ledger that records transactions in a secure and transparent way. It uses cryptography to ensure the validity of transactions and prevent fraud. The technology is based on a chain of blocks, each block containing a number of transactions. Each block is linked to the previous one through a unique code called a "hash."
When a transaction is made, it is verified by multiple network participants and then added to the block. Once a block is filled with a certain number of transactions, it is added to the blockchain, creating a permanent and unchanging record of all transactions.
A key feature of blockchain is its decentralized nature. Instead of the blockchain being controlled by a single entity or organization, it is maintained by a network of users. This means that there is no central point of failure, making it more secure and resistant to hacking attempts.
Another important aspect of blockchain technology is its transparency. All participants in the network have access to information in the blockchain, making the transaction process transparent. This makes it easier to detect fraud and other malicious activity.
Blockchain technology has a wide range of applications, from cryptocurrencies such as bitcoin to supply chain management and voting systems. The technology is constantly evolving, and its potential has yet to be fully realized.