How Blockchain Technology Works in Simple Terms

Blockchain is a decentralized digital ledger.

Imagine a notebook shared among thousands of people. When someone writes a transaction, everyone sees and verifies it.

How It Works

  1. User initiates transaction.
  2. Network verifies.
  3. Transaction grouped into block.
  4. Block linked to previous block.
  5. Stored permanently.

Each block contains:

  • Transaction data
  • Timestamp
  • Unique hash
  • Previous block’s hash

This linking makes it nearly impossible to alter past data.

Why Blockchain Is Secure

  • Decentralized network.
  • Cryptographic hashing.
  • Immutable records.

Used in:

  • Banking
  • Healthcare
  • Supply chain
  • Real estate
  • Voting systems

Blockchain is the backbone of cryptocurrency.

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