Blockchain is a decentralized, distributed ledger that records transactions in a secure and transparent way. Each block in the blockchain contains a cryptographic hash of the previous block, creating a chain that cannot be altered without changing subsequent blocks. The blockchain is maintained by a network of computers called nodes, which work together to verify transactions and add them to the blockchain.

Brief explanation of how blockchain works:

  1. When a transaction is initiated, it is broadcast to the network of computers, or nodes, that make up the blockchain.
  2. The nodes work together to verify the transaction by solving complex mathematical problems, and once it is verified by the majority of nodes, it is added to a new block in the blockchain.
  3. Each block in the blockchain contains a unique code, called a cryptographic hash, that is based on the previous block’s hash, creating a chain of blocks that is difficult to alter without changing all subsequent blocks.
  4. The blockchain is distributed across a network of nodes, making it difficult for any single entity to control or manipulate the system.
  5. Thenodesareincentivizedtomaintaintheblockchainbyreceivingrewardsinthe form of cryptocurrency, which is generated through the process of mining new blocks.
  6. The blockchain is designed to be transparent and secure, as every transaction is recorded and can be verified by anyone on the network.
  7. Asmoretransactionsareaddedtotheblockchain,itbecomesincreasinglysecure and resistant to tampering.

Overall, the blockchain works by using a network of nodes to verify and record transactions in a secure and transparent way. Its decentralized nature and cryptographic security make it a powerful tool for a wide range of applications, from cryptocurrencies to supply chain management.