Blockchain Technology Explained: How It Works and Its Applications

Blockchain Technology Explained

Blockchain is a distributed database maintaining continuously growing list of records called blocks. Each block contains transaction data, timestamp, and cryptographic hash of previous block. This creates immutable chain - changing past blocks would break cryptographic links. Consensus mechanisms (Proof-of-Work, Proof-of-Stake) ensure network agreement on valid transactions. Smart contracts are self-executing programs on blockchains. Applications extend beyond cryptocurrency to supply chain tracking, voting systems, and healthcare records. Transparency provides security but sacrifices privacy.