How does blockchain technology work, and what are its applications?

 Blockchain technology is a decentralized digital ledger that records transactions across many computers in a way that is secure, transparent, and tamper-proof.

How It Works (In Short):

  • Transactions are grouped into blocks.
  • Each block links to the previous one, forming a chain.
  • The network of computers (nodes) validates and agrees on the transactions using consensus mechanisms.
  • Once recorded, data in a block cannot be altered without changing all subsequent blocks, ensuring security.

Key Applications:

  • Cryptocurrencies (e.g., Bitcoin)
  • Supply chain tracking (ensures product authenticity)
  • Smart contracts (self-executing contracts without intermediaries)
  • Voting systems (secure and transparent elections)
  • Identity verification (digital IDs)

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