Blockchain is a decentralized and distributed digital ledger technology that records transactions across multiple computers. This ensures that the recorded data cannot be altered retroactively without the consensus of the network.

Each transaction is grouped into a “block,” which is then linked to the previous block, forming a “chain.” This chain structure enhances security, as altering any block would require changing all subsequent blocks, making tampering extremely difficult. Transactions on a blockchain are typically confirmed by a process called mining, where powerful computers solve complex mathematical problems.

Once a transaction is verified, it becomes permanent and transparent, allowing users to view transaction history. Because it operates without a central authority, blockchain reduces the risk of fraud and increases trust among users.

It supports various applications beyond currency, including smart contracts, supply chain management, and identity verification, making it a versatile foundation for numerous innovations.