Blockchains are essentially digital ledgers that record transactions in a transparent and immutable way from "summary" of Blockchain Technology Explained by Alan T. Norman
Blockchains are essentially digital ledgers that record transactions in a transparent and immutable way. To understand this concept, let's break it down. A blockchain is a distributed database that consists of a chain of blocks. Each block contains a list of transactions, and each block is linked to the previous block through a cryptographic hash. This ensures that the data in the blockchain is secure and tamper-proof. The key feature of a blockchain is its transparency. This means that anyone can view the transactions recorded in the blockchain. This transparency is achieved through a network of nodes that validate and store transactions. Once a transaction is added to the blockchain, it cannot be altered or deleted. This immutability is what makes blockchains so secure and trustworthy. When a new transaction is initiated, it is broadcasted to the network of nodes. These nodes then validate the transaction by checking its authenticity and ensuring that the sender has the necessary funds. Once the transaction is verified, it is added to a block along with other transactions. This block is then added to the blockchain, creating a permanent record of the transaction. By recording transactions in a transparent and immutable way, blockchains provide a level of trust that traditional centralized systems cannot match. This is particularly useful in industries such as finance, supply chain management, and healthcare, where data integrity and security are paramount. In addition, the decentralized nature of blockchains makes them resistant to censorship and fraud.- Blockchains offer a revolutionary way to record and store data in a secure and transparent manner. By leveraging cryptographic techniques and a distributed network of nodes, blockchains ensure that transactions are recorded accurately and cannot be altered. This has the potential to transform industries and change the way we interact with data in the digital age.
