Blockchain is a decentralized, secure digital ledger that records transactions across multiple computers. It eliminates the need for a central authority, ensuring transparency and security.
Key Features of Blockchain:
- Decentralization – No single authority controls the network.
- Transparency – Transactions are recorded and visible to all participants.
- Immutability – Once a transaction is recorded, it cannot be changed.
- Security – Transactions are encrypted using cryptographic methods.
- A user initiates a transaction (e.g., sending Bitcoin).
- The network verifies the transaction using consensus mechanisms.
- Verified transactions are grouped into a block.
- The block is added to the blockchain in a secure and immutable way.
- The transaction is completed and recorded permanently.
- Public Blockchain – Open to everyone, used in cryptocurrencies like Bitcoin and Ethereum.
- Private Blockchain – Restricted access, used by organizations for internal operations.
- Consortium Blockchain – Controlled by multiple organizations, used in banking and finance.
- Proof of Work (PoW) – Miners solve complex puzzles to validate transactions (Bitcoin, Ethereum 1.0).
- Proof of Stake (PoS) – Users stake their coins to validate transactions (Ethereum 2.0, Cardano).
- Delegated Proof of Stake (DPoS) – Users vote for trusted validators (EOS, Tron).
- Cryptocurrency – Bitcoin, Ethereum, and other digital currencies use blockchain.
- Smart Contracts – Self-executing contracts used in Ethereum for automation.
- Supply Chain Management – Tracks goods from production to delivery in real-time.
- Digital Identity – Secures identity verification and prevents fraud.
- Voting Systems – Ensures transparent and tamper-proof elections.