What is Blockchain?
Blockchain is one of the most revolutionary technologies of the 21st century, powering cryptocurrencies like Bitcoin and influencing industries far beyond finance. While there are many blockchains, most modern systems are built on the same foundational model - first introduced by Bitcoin.
Understanding Blockchain
A blockchain is a chain of blocks, each containing a collection of transactions or data. These blocks can store various types of information β from financial records and digital contracts to identity data and ownership proofs.
You can also think of blockchain as a global distributed ledger. Instead of being stored in one central place, data is distributed across a network of nodes β computers that each hold a copy of the entire ledger.
In a blockchain network, there is no central server - all nodes are connected peer-to-peer and maintain synchronized copies of the data. This decentralization ensures that no single entity has control over the network, which increases security, transparency, and resilience.
Not every distributed ledger is a blockchain. A true blockchain uses encryption with public and private keys to ensure data integrity and security.
Why Blockchain Matters
Although decentralized, blockchain ensures security, trust, and transparency through several key features.
Immutability
Once data is written to the blockchain, it's virtually impossible to alter. Each block refers to the one before it, forming an unbreakable chain - changing one block would require altering all the others. For example, in Bitcoin, new blocks are added roughly every 10 minutes, and rewriting the chain would demand immense computational power.
Blockchain protects data by design, not by permission.
Transparency
While users can remain pseudonymous, all transactions are publicly verifiable. This open nature helps build trust among participants and makes the entire system auditable.
Applications of Blockchain
While most people associate blockchain with cryptocurrencies, its potential applications are much broader:
1. What is a blockchain?
2. Which of the following is true about blockchain?
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Blockchain is one of the most revolutionary technologies of the 21st century, powering cryptocurrencies like Bitcoin and influencing industries far beyond finance. While there are many blockchains, most modern systems are built on the same foundational model - first introduced by Bitcoin.
Understanding Blockchain
A blockchain is a chain of blocks, each containing a collection of transactions or data. These blocks can store various types of information β from financial records and digital contracts to identity data and ownership proofs.
You can also think of blockchain as a global distributed ledger. Instead of being stored in one central place, data is distributed across a network of nodes β computers that each hold a copy of the entire ledger.
In a blockchain network, there is no central server - all nodes are connected peer-to-peer and maintain synchronized copies of the data. This decentralization ensures that no single entity has control over the network, which increases security, transparency, and resilience.
Not every distributed ledger is a blockchain. A true blockchain uses encryption with public and private keys to ensure data integrity and security.
Why Blockchain Matters
Although decentralized, blockchain ensures security, trust, and transparency through several key features.
Immutability
Once data is written to the blockchain, it's virtually impossible to alter. Each block refers to the one before it, forming an unbreakable chain - changing one block would require altering all the others. For example, in Bitcoin, new blocks are added roughly every 10 minutes, and rewriting the chain would demand immense computational power.
Blockchain protects data by design, not by permission.
Transparency
While users can remain pseudonymous, all transactions are publicly verifiable. This open nature helps build trust among participants and makes the entire system auditable.
Applications of Blockchain
While most people associate blockchain with cryptocurrencies, its potential applications are much broader:
1. What is a blockchain?
2. Which of the following is true about blockchain?
Thanks for your feedback!
