Blockchain technology is a decentralized and distributed ledger system that enables secure and transparent record-keeping. It was originally designed to support cryptocurrencies like Bitcoin, but its applications have since expanded to various industries. Here's a simplified explanation of how blockchain technology works:
- Decentralization:
- Traditional databases are centralized, meaning they are stored on a single server or a small number of servers. In contrast, a blockchain is decentralized and distributed across a network of computers (nodes).
- Each node on the network has a copy of the entire blockchain.