How does blockchain work?

Blockchain is a digital ledger technology that enables secure transactions without the requirement of a trusted intermediary or intermediary financial institution. A blockchain is essentially a digital ledger that records all transactions that take place on the network. Each transaction is validated and verified by a network of computers or nodes, ensuring the authenticity and integrity of the transaction. In order to add a new block to the chain, a complex mathematical algorithm is solved by a computer. Once a block is added, it cannot be altered or deleted, making it an immutable record of all transactions on the blockchain. This ensures that transactions are secure and tamper-proof. The decentralized nature of blockchain technology also ensures that no single entity has control over the information on the network, making it a truly peer-to-peer system.

This mind map was published on 18 May 2023 and has been viewed 65 times.