Blockchain is a technology that allows data to be stored and transferred in a decentralized manner, without the need for intermediaries. It is based on a network of computers that collectively maintain a ledger of transactions, ensuring its transparency and security.
Each transaction in the blockchain is recorded in a so-called block, which, once verified, is attached to a chain of previous blocks. The use of cryptography makes this data almost impossible to forge, making the blockchain tamper-proof.
One of the key elements of blockchain is the consensus mechanism, which allows the network to agree on which transactions are genuine. The most popular mechanisms are Proof of Work (PoW), used by Bitcoin, for example, and Proof of Stake (PoS), used in Ethereum 2.0.
Blockchain finds applications not only in cryptocurrencies, but also in the financial sector, logistics or data management. It can be used to store smart contracts, tokenize assets or track the supply chain.
The development of this technology is still ongoing, and its potential can revolutionize many industries. That’s why it’s worth understanding its basics and keeping up with the latest innovations.