What is blockchain technology and how does it work?

Blockchain technology is a decentralized digital ledger that allows multiple participants to record, verify, and maintain a secure and transparent record of transactions. It functions by organizing data into blocks that are linked together through cryptographic hashes, forming a chain. Each block contains a set of transactions that are added to the blockchain after being validated by a network of computers called nodes. These nodes collectively reach a consensus on the order and validity of transactions, ensuring the accuracy and integrity of the data. Once a block is added, it becomes practically impossible to tamper with or modify the information stored within it, thanks to the cryptography and distributed nature of the blockchain. This technology has gained significant attention due to its potential to revolutionize various industries, including finance, supply chain management, and healthcare, by eliminating the need for intermediaries, enhancing security, and increasing efficiency.

This mind map was published on 21 July 2023 and has been viewed 54 times.