Blockchain is a decentralized, distributed ledger technology that enables secure and transparent digital transactions. In the context of cryptocurrencies like Bitcoin, a blockchain is a chain of blocks containing a record of transactions. Each block is linked to the previous one, forming a continuous chain, hence the name "blockchain."
When a transaction is initiated, it gets verified by network participants (miners) and added to a block. The block is then added to the existing blockchain after consensus is reached by the network. This decentralized and transparent nature of blockchain technology ensures that transactions are secure, immutable, and resistant to tampering.
Blockchain technology eliminates the need for intermediaries like banks in financial transactions, and it provides transparency by allowing anyone to view the transaction history on the public ledger. It also uses cryptographic techniques to ensure the security and integrity of data stored on the blockchain.
Overall, blockchain technology has numerous applications beyond cryptocurrencies, such as supply chain management, smart contracts, voting systems, and more, due to its ability to provide transparency, security, and immutability in various processes.
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