Blockchain technology is the foundation of cryptocurrency. It functions as a distributed ledger that records transactions across a network of computers.
Each transaction is grouped into a block, and these blocks are linked together in chronological order to form a chain. Once data is recorded on the blockchain, it cannot be altered or deleted.
Components of Blockchain
Blocks
Blocks contain transaction data and a cryptographic hash.
Nodes
Nodes are computers that maintain and verify the blockchain.
Miners or Validators
These participants confirm transactions and add new blocks to the blockchain.
Consensus Mechanisms
Algorithms such as Proof of Work and Proof of Stake ensure that all participants agree on the validity of transactions.
This decentralized system ensures that no single entity controls the network, making blockchain highly secure and resistant to manipulation.
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