Blockchain Technology

Blockchain is a decentralized digital ledger that records transactions across a network of computers. Each transaction is added to a block in a chronological order, forming a chain of blocks. This technology ensures transparency and security as each block is linked to the previous one, making it nearly impossible to alter past transactions without changing subsequent ones.

In the context of cryptocurrency, blockchain technology is used to securely transfer digital assets between parties without the need for a central authority, such as a bank. When a cryptocurrency transaction occurs, it is verified by a network of computers (nodes) using complex algorithms. Once validated, the transaction is added to a block, which is then added to the existing chain.

This peer-to-peer network of nodes ensures that transactions are secure, transparent, and tamper-proof. Each participant in the network has a copy of the blockchain, making it resilient to hacking or fraud. This decentralized system eliminates the need for intermediaries, reducing cost and increasing efficiency in transactions. Overall, blockchain technology is a foundational element of cryptocurrency, enabling secure and efficient digital transactions.