Blockchains are revolutionising the way we handle data, offering a secure, decentralised method of recording transactions. At its core, a blockchain is a database, with each ‘block’ containing a list of transactions. These blocks are linked using cryptography, forming a ‘chain’.
Blockchain’s real power lies in its decentralised nature. No single entity controls the data, making it highly resistant to fraud and hacking. This decentralisation also means that the data is transparent, with every transaction visible to anyone with access to the network.
The technology is not without its challenges. It’s energy-intensive, with the Bitcoin network alone consuming more power than some countries. It also faces scalability issues, with the processing speed of transactions currently much slower than traditional methods.
Despite these hurdles, blockchain’s potential is vast. It could transform industries from finance to food safety, providing a secure, transparent method of recording transactions. It’s already being used in supply chain management, voting systems, and even music distribution.
In essence, blockchain is about trust. It offers a way of confirming transactions without the need for a central authority. This could fundamentally change the way we do business, making transactions faster, cheaper, and more secure.
Go to source article: https://spectrum.ieee.org/computing/networks/blockchains-how-they-work-and-why-theyll-change-the-world