What is Blockchain

Blockchain is a decentralized, digital ledger technology that records transactions across a network of computers. It ensures transparency, security, and immutability by linking data in “blocks” that are chronologically ordered, forming a “chain.” This makes data tamper-proof and accessible to all participants.

Key Features:

1. Decentralized: No central authority controls the system.
2. Transparency: All transactions are visible to participants.
3. Immutability: Once data is recorded, it cannot be altered.
4. Security: Uses cryptographic techniques to secure transactions.

Applications:

• Cryptocurrency: Bitcoin, Ethereum, etc.
• Smart Contracts: Self-executing contracts.
• Supply Chain: Tracking goods’ origin and movement.
• Decentralized Finance (DeFi): Financial services without intermediaries.

Benefits:

• Trustless (no need for intermediaries).
• Low transaction costs.
• High security and fraud reduction.

Challenges:

• Scalability: Limited capacity to handle large volumes of transactions.
• Energy Usage: Some blockchains (e.g., Bitcoin) are energy-intensive.
• Regulatory Issues: Uncertainty about regulation in different regions.

In short, blockchain provides a secure, transparent, and decentralized way to store and verify transactions without a central authority.