What is blockchain and how does it work?

Blockchain is a decentralized, immutable, and transparent digital ledger that operates on a network of computers called nodes. It works by creating a series of blocks that store information in a chronological order. Each block contains a unique identifier called a hash and a reference to the previous block, forming a chain. The network validates and approves transactions through a consensus mechanism, ensuring trust and security. Changes to the blockchain require agreement from a majority of nodes, making it resistant to tampering or hacking. Additionally, blockchain offers transparency as anyone can access and verify transactions, promoting accountability. This technology finds application in various industries, notably cryptocurrencies like Bitcoin, where it enables secure and efficient peer-to-peer transactions without the need for intermediaries.

This mind map was published on 9 September 2023 and has been viewed 80 times.