What is Blockchain?
Introduction: Blockchain is a decentralized and distributed digital ledger used to record transactions across many computers so that any involved record cannot be changed retroactively, without the alteration of all subsequent blocks. This technology aims to enhance transparency and trust among parties as every transaction is verifiable by all users.
Applications: Blockchain technology has found its applications well beyond its original use case in cryptocurrency. It’s now being employed in supply chain management to track the production, shipment, and receipt of products in a transparent and unchangeable ledger. Other fields benefiting from blockchain include real estate, where it simplifies the buying process and reduces fraud; healthcare, for secure and unchangeable patient records; and voting systems, where it can be utilized to prevent fraud and ensure the integrity of electoral processes.
Security and Transparency: The decentralized nature of blockchain significantly enhances the security and transparency of transactions. Each block in the chain contains a number of transactions, and every time a new transaction occurs on the blockchain, a record of that transaction is added to every participant’s ledger. The decentralized database managed by multiple participants is known as Distributed Ledger Technology (DLT). The cryptographic hashing, a consensus model, and the decentralized nature make blockchain a secure and transparent technology for various applications, reducing risks of fraud and manipulation.