What is blockchain and how does it work?

Seerat Brar
2 min readMar 11, 2023

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Blockchain is a distributed ledger technology that allows digital transactions to be recorded, verified, and tracked in a secure and transparent way. It consists of a network of computers, known as nodes, that collectively validate and store the data, creating a tamper-proof and unalterable record.

Each block in the chain contains a set of transactions, along with a unique digital signature, called a hash. The hash ensures that the data in the block is secure and cannot be altered without changing the entire chain. Each block also includes a reference to the previous block in the chain, forming a chronological record of transactions.

One of the key features of blockchain is its decentralized nature. Instead of relying on a central authority or intermediary, like a bank or government, transactions are verified and validated by multiple nodes on the network. This makes it extremely difficult for anyone to manipulate or corrupt the data, as any changes would need to be approved by the majority of the nodes on the network.

Another important aspect of blockchain is its transparency. Because every transaction is recorded and verified by multiple parties, it creates a clear and auditable trail of activity that can be accessed by anyone on the network. This can be especially useful in industries where transparency and accountability are important, such as supply chain management or voting systems.

Overall, blockchain has the potential to revolutionize many industries by offering a secure, transparent, and decentralized way to manage digital transactions. While it is still a relatively new technology, it is rapidly gaining traction and is expected to have a major impact in the coming years.

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