What Is Blockchain Technology?
Blockchain, also known as distributed ledger technology, is a shared database that operates across a computer network. It gained recognition when Satoshi Nakamoto, an anonymous individual or group, introduced it in 2008 as the transaction ledger for Bitcoin. What made blockchain revolutionary was its ability to address the issue of double-spending in digital currencies without relying on a central authority or server. Once a record, called a block, is added to the chain, it becomes extremely difficult to alter.
The network continually verifies that all copies of the database are identical. Each block includes a unique code that represents the previous block, a timestamp, and transaction information. The timestamp serves as proof that the transaction data existed at the time the block was added to the chain. By linking blocks together, a secure and tamper-resistant chain is formed, with each new block strengthening the integrity of the previous ones. Typically, blockchain is managed by a peer-to-peer network, where nodes work together following a set of rules to validate and communicate new blocks.
In easy words, Blockchain is a way of storing information digitally that makes it really hard or even impossible to change or hack. It’s like a big database that is shared among many computers in a network. Blockchains are mostly known for their important role in cryptocurrency systems like Bitcoin. What’s cool about blockchain is that it ensures the data is secure and trustworthy without needing a middleman or third party. It’s a clever way to keep track of transactions and make sure everything is reliable.