BLOCKCHAIN TECHNOLOGY Blockchain technology is a decentralized and distributed ledger system that enables secure and transparent record-keeping of transactions across a network of computers. Here’s a breakdown of its key components and how the technology can be used: 1. DECENTRALIZATION Blockchain operates on a peer-to-peer network where each participant (node) has a copy of the entire ledger. This decentralized nature eliminates the need for a central authority, making the system more resilient and less vulnerable to single points of failure. 2. BLOCKS AND CHAIN Information is stored in blocks, each containing a list of transactions. Once a block reaches its capacity, a new block is created and linked to the previous one, forming a chronological chain. This chain structure ensures the recorded data can not be changed. 3. CONSENSUS MECHANISM To validate transactions and add them to the blockchain, participants in the network must agree on the current state of the ledger. Various consensus mechanisms, such as Proof of Work (PoW) or Proof of Stake (PoS), are employed to achieve agreement without relying on a central authority. 4. SECURITY THROUGH CRYPTOGRAPHY Transactions on the blockchain are secured through cryptographic techniques. Each participant has a public and private key, ensuring the integrity and privacy of their interactions. The use of cryptography enhances the security and trustworthiness of the system. 5. SMART CONTRACTS Smart contracts are self-executing contracts with the terms of the agreement directly written into code. These contracts automatically execute when predefined conditions are met. Smart contracts can be deployed on blockchain networks, providing transparency and efficiency in various industries, from finance to real estate.


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