What is Blockchain?
A beginner’s guide to understanding the technology behind Web3 and crypto.
Blockchain is a distributed ledger technology that powers most cryptocurrencies and Web3 applications. It’s a secure and transparent system for recording transactions.
How Does It Work?
Each “block” in a blockchain contains a list of transactions. Once a block is full, it is encrypted and added to the chain of previous blocks. This process creates an immutable and transparent record of all transactions.
Decentralization is key. No single entity controls the blockchain; instead, a network of computers around the world maintains and validates it. This makes it highly resistant to censorship and manipulation.
Benefits of Blockchain
- Transparency: All transactions can be viewed by anyone on the network.
- Security: Data is encrypted and extremely difficult to alter.
- Decentralization: No single point of failure.
- Efficiency: Transactions can be processed faster without intermediaries.
Blockchain has the potential to revolutionize various industries — from finance to supply chains — by providing a more secure and efficient way to manage data and transactions.