What is blockchain? A popular explanation of blockchain in vernacular

Blockchain is a distributed ledger technology that records transaction information in immutable, linked blocks. Each block contains a timestamp, transaction details and a hash of the previous block. Blockchain verifies transactions through nodes, forming an immutable chain, and uses consensus algorithms to reach consensus. Its characteristics include distributed, immutable, transparent and secure, and is widely used in fields such as cryptocurrency, supply chain management, identity authentication and voting.

What is blockchain?

Blockchain is a distributed ledger technology that records transaction information in immutable, linked blocks. Each block contains a timestamp, transaction details, and a hash of the previous block.

How blockchain works:

• Transaction creation: When a user initiates a transaction, it is broadcast to the block all nodes in the chain network.
• Node Verification: Nodes on the network verify the validity of transactions.
• Block Creation: Verified transactions are collected and saved in a block.
• Hashes and Links: Each block contains the hash of the previous block, forming an unchangeable chain.
• Consensus Algorithm: The network uses a consensus algorithm (such as Proof of Work or Proof of Stake) to reach consensus on the state of the blockchain.

Features of blockchain:

• Distributed: Blockchain is not stored on a central server; is distributed on all nodes in the network.
• Immutable: Once a block is added to the chain, it cannot be changed or deleted.
• Transparency: Everyone can access the blockchain and view transaction records.
• Security: Blockchain is designed to be highly secure because tampering with it requires controlling a majority of the nodes in the network.

Applications of blockchain:

Blockchain technology has a wide range of applications, including:

• Cryptocurrencies: Cryptocurrencies such as Bitcoin and Ethereum use blockchain as their transaction infrastructure.
• Supply Chain Management: Blockchain can increase transparency and efficiency, tracking the journey of goods from production to consumption.
• Identity Verification: Blockchain can provide a safe and reliable method of identity verification, reducing fraud and identity theft.
• Voting: Blockchain can help achieve a secure and transparent voting system.

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