Cryptocurrencies like Bitcoin use blockchain to enable secure and decentralized transactions from "summary" of Blockchain Technology Explained by Alan T. Norman
Cryptocurrencies like Bitcoin have gained popularity in recent years due to their ability to facilitate secure and decentralized transactions. This is made possible through the use of blockchain technology. Blockchain is essentially a digital ledger that records transactions in a secure and transparent manner. Each transaction is grouped together in a "block," which is then added to a chain of other blocks, hence the name blockchain. The decentralized nature of blockchain means that there is no central authority controlling the network. Instead, transactions are verified by a network of computers, known as nodes, spread across the globe. These nodes work together to validate transactions and ensure the integrity of the blockchain. One of the key features of blockchain technology is its security. Each block in the chain is encrypted using cryptographic techniques, making it virtually impossible for hackers to tamper with the data. This ensures that transactions are secure and cannot be altered once they have been recorded on the blockchain. Furthermore, because the blockchain is decentralized, there is no single point of failure. This means that even if some nodes on the network go offline, the blockchain remains intact and transactions can still be processed.- Blockchain technology provides a secure and efficient way to conduct transactions without the need for intermediaries. This has revolutionized the way we think about finance and has the potential to disrupt many industries in the future.
