Blockchain is a distributed database or ledger that records transactions across multiple computers in such a way that the registered transactions cannot be altered retroactively. This technology is best known for its role in cryptocurrency systems, like Bitcoin, where it ensures a secure and decentralized record of transactions. The integrity and security of the data are maintained through cryptographic hashes, a consensus mechanism among participants, and continuous growth of the ledger as new blocks of information are added to the chain[1][2][3].
Key Characteristics of Blockchain
Decentralization: Unlike traditional databases managed by a central authority, blockchain technology allows data to be stored across a network of computers. This decentralization reduces the risk of centralized data corruption or failure[2][3].
Immutability: Once a transaction is recorded on the blockchain, it cannot be altered or deleted. This immutability is secured through cryptographic hashes that link each block to its predecessor, forming a chain. Any attempt to change the information in a previous block would require altering all subsequent blocks, which is computationally impractical[2][3].
Transparency: Although transactions are secure, blockchain offers transparency by allowing all participants in the network to view the entire ledger. This feature is crucial for building trust among participants and is particularly useful in scenarios like supply chain management, where multiple parties need assurance about the authenticity of transaction history[2][3].
