How Blockchain Technology Works

Blockchain technology is a decentralized, digital ledger that records transactions across a network of computers. Each block in the chain contains a number of transactions, and every time a new transaction is added to the chain, it is grouped with other transactions into a block.

Once a block is added to the chain, it cannot be altered or deleted, making the technology highly secure and resistant to fraud. Each block in the chain contains a unique code called a "hash," which links it to the previous block, creating a chain of blocks.

This chain of blocks is maintained by a network of computers, called nodes, that work together to validate new transactions and add them to the blockchain. This process is called "mining," and it is done by solving complex mathematical equations.

Once a block is mined, it is added to the chain, and a copy of the entire blockchain is distributed to all the nodes in the network. This creates a decentralized system where no single entity controls the data, and everyone in the network has a copy of the same information.

Blockchain technology can be used to create and manage digital currencies, such as Bitcoin, but it has many other potential applications as well. It can be used to create smart contracts, digital voting systems, and other decentralized applications.

In summary, blockchain technology is a decentralized, digital ledger that records transactions across a network of computers. It uses complex mathematical equations, called "mining," to validate transactions and add them to the chain, creating a tamper-proof and secure record of all transactions. It's a distributed system where no single entity controls the data, and everyone in the network has a copy of the same information.