How Blockchain Works: A Simple Explanation for Beginners

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Blockchain is a word that has recently become one of the symbols of innovative uganda whatsapp number database technologies in IT and financial revolutions. It is often compared to a giant ledger, but, unlike traditional systems, information in the blockchain is distributed among a large number of network participants.
Don't worry if you are a simple "teapot" in the world of IT - in this article we will figure out how the blockchain works and where technologies developed on its basis are used. We will try to explain it clearly, briefly and understandably.

Blockchain technology - what is it
You've probably heard the word "blockchain" more than once. Blockchain is a distributed database or digital registry that provides secure and transparent data storage. Its main idea is that information is recorded in blocks, which are then linked together in a chain. Each newly created block contains data and a unique cryptographic hash of the previous one - this eliminates the possibility of changing the data in the block without changing the entire chain.

Briefly about the key characteristics of the blockchain:

Decentralization. Data is not stored on one server, it is duplicated in a network of computers (nodes) - this reduces the risk of information loss and system hacks.
Security. Data is protected by cryptographic methods from unauthorized changes and counterfeiting.
Transparency: All network participants can see the records in real time, which promotes mutual trust between the parties.
Its main application today is cryptocurrency. But in other areas as well – from financial services and logistics to healthcare and data management – ​​this technology is gradually finding new areas and objects of application of decentralized applications and smart contracts. Systems using blockchain can change many industries and areas of activity in the near future.

Blockchain technology - what is itImage by freepik.
How does blockchain work?