Blockchain is a digital ledger that records and verifies transactions. It works by storing data in a network of interconnected blocks that are secured using complex cryptography. Each block contains a set of transactions, and when a new transaction occurs, a record of that transaction is added to every participant's ledger.
The key aspects of how blockchain works are decentralization, transparency, and security. Blockchain is decentralized, meaning it is not controlled by any single entity, but rather by the entire network of participants. This makes the system more transparent, as all participants can view the transaction history. The security comes from the fact that each block is linked to the previous one, creating a chain that is extremely difficult to alter or hack. This ensures the integrity of the data recorded on the blockchain.
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