What is blockchain technology?

Blockchain technology is best described as a distributed ledger system for recording transactions. This means that it is a decentralized database that securely stores information across multiple computers or nodes, ensuring that the information remains transparent, secure, and tamper-proof. Each participant in the network maintains a copy of the entire blockchain, allowing for verification and validation of transactions without the need for a central authority. This distribution reduces the risk of data manipulation or fraud and improves the overall security of the transaction process.

As transactions are added to the blockchain, they are grouped into blocks and linked together in chronological order. Each block contains a cryptographic hash of the previous block, creating an unbreakable chain of records. This process makes blockchain technology especially useful for applications beyond cryptocurrency, including supply chain management, voting systems, and healthcare records, where trustworthy and transparent records are crucial.