12/09/2025
Blockchain Technology
What is Blockchain Technology
Blockchain technology is a decentralized, distributed digital ledger that securely records transactions across a network of computers, making the data immutable and transparent, stored in chronological blocks, each cryptographically linked to the previous one, forming a chain.
This shared ledger is known as Distributed Ledger Technology (DLT), it eliminates the need for a central authority, -a central bank - providing a secure and transparent way to track data and transactions without intermediaries.
How it Works
Transaction Initiation
A participant initiates a transaction, like sending funds or data.
Verification: A network of computers (nodes) verifies the transaction using a process called consensus mechanism.
Block Creation:
Verified transactions are grouped into a "block".
Hashing and Chaining:
Each block is given a unique digital identifier called a cryptographic hash, and it also contains the hash of the preceding block, forming a secure, chronological chain.
Distribution:
Once a block is added to the chain, every node on the network receives an updated copy of the ledger.
Key Characteristics
Decentralized:
The data isn't stored in one central location but is distributed across numerous computers in the network.
Immutable:
Once data is added to a block and the block is chained, it cannot be altered or deleted, making the record tamper-proof.
Transparent:
All participants on the network can view the transparent record of transactions, fostering trust and visibility.
Secure:
Cryptography and digital signatures are used to secure transactions and protect against fraud.
Applications
While best known for powering cryptocurrencies like Bitcoin, blockchain technology has applications beyond finance, including:
Supply Chain Management: Tracking goods and verifying their provenance.
Healthcare:
Securely managing patient records.
Voting Systems:
Creating more secure and transparent voting processes.
Smart Contracts:
Automating contract ex*****on without human intervention
To be continued...