Blockchain 101: How it Works and Why it Matters
How blockchain worksEach block in the blockchain contains a list of transactions, and once a block is added to the chain, it cannot be modified. This ensures the integrity and security of the blockchain, as any attempt to tamper with one block would invalidate the entire chain. This is accomplished through cryptographic hashing, which involves converting the transaction data into a fixed-length code that is unique to that block. The code is then added to the block’s header, along with a timestamp and other metadata. Distributed consensus is another key feature of blockchain technology. Before a new block can be added to the chain, it must be validated by the network of nodes that make up the blockchain. This process involves solving complex mathematical equations, and once a majority of nodes agree that the block is valid, it is added to the chain. This consensus mechanism ensures that the blockchain remains secure and resistant to attacks.
By understanding the basics of blockchain technology and its potential applications, we can better prepare ourselves for the future of business and technology.