Understanding Blockchain Fundamentals

Blockchain is a distributed ledger known for its role in cryptocurrency, maintaining secure and decentralized transaction records. Its immutability ensures data cannot be altered, reducing the need for trusted third parties and minimizing errors. Since Bitcoin’s inception, blockchain applications have expanded to cryptocurrencies, decentralized finance, non-fungible tokens, and smart contracts. The seven main features of blockchain include distributed ledger, transparency, peer-to-peer network, consensus, encryption, immutability, and programmability with smart contracts. Blockchain technology, using consensus models like proof-of-work, ensures secure transactions, authentic information through encryption, and permanence with immutable linked blocks. Additionally, smart contracts enable trustless protocols, reducing the need for intermediaries and lowering operational costs.