How Blockchain Technology Works

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Many people hear about Bitcoin or Ethereum, but don’t fully understand the underlying tech — blockchain. Here's a simple breakdown.

🔗 What Is a Blockchain?

A blockchain is a digital ledger where transactions are recorded in blocks and linked together in a chain.

Each block contains:

  • A list of transactions

  • A timestamp

  • A reference to the previous block (a cryptographic hash)

🧠 Why Is It Powerful?

  • Decentralized: No single point of failure

  • Transparent: Anyone can verify transactions

  • Immutable: Once recorded, data can't be changed

⚙️ Example: How It Works

Let’s say Alice sends 1 BTC to Bob.

  1. The transaction is broadcast to the network.

  2. Miners (or validators) verify it.

  3. Once approved, it's added to a block.

  4. The block is added to the chain — permanently.

🛡️ Use Cases Beyond Crypto

  • Supply chain tracking

  • Smart contracts (e.g., Ethereum)

  • Digital identity

  • Voting systems

Blockchain is changing the way we think about trust, value, and ownership.

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