Blockchain is the foundational technology that powers cryptocurrencies like Bitcoin and Ethereum. At its core, a blockchain is a decentralized, distributed ledger that records transactions across a network of computers. Each block contains a list of transactions, and once verified, it is added to the chain in a way that is immutable and transparent. This eliminates the need for intermediaries like banks, reducing costs and increasing efficiency.
One of the key features of blockchain is its security. Transactions are encrypted and linked to previous blocks, making tampering nearly impossible. Additionally, the decentralized nature of blockchain ensures that no single entity controls the network, enhancing trust among users. Beyond cryptocurrencies, blockchain has applications in supply chain management, voting systems, and smart contracts, which automatically execute agreements when predefined conditions are met.
As blockchain technology evolves, its potential to revolutionize industries grows. Governments and corporations are exploring its use for everything from digital identity verification to cross-border payments. While challenges like scalability and energy consumption remain, blockchain’s promise of transparency, security, and decentralization makes it a transformative force in the digital age.