Blockchain is a distributed ledger technology that stores data in the form of a gradually growing, linked data block (block), and uses cryptographic methods and consensus algorithms to ensure data security and reliability.
Specifically, blockchain is a decentralized network composed of multiple nodes, each of which stores a complete copy of the ledger and uses consensus algorithms to reach consensus and verify the validity of data. Whenever new transactions occur, they are packaged into a block and added to the end of the blockchain. Each block contains the hash value of the previous block, forming a chain connected block sequence.
The core features of blockchain include:
- Decentralization: Blockchain does not have a centralized control mechanism, and data and transactions are jointly verified and recorded by multiple nodes in the network. This means that there is no single authoritative organization controlling data and decision-making power, improving the transparency and flexibility of the system.
- Distributed ledger: Data and transaction records are distributed across all nodes of the network, rather than being concentrated in a single central database. Each node has a complete copy and can verify and update the ledger. This distributed design increases the security and reliability of data.
- Security: Blockchain uses cryptographic methods such as hash functions and asymmetric encryption to protect the security of data. Each block contains a hash fingerprint of the previous block, which encrypts and verifies the data to ensure its integrity and prevent tampering.
- Non tamperability: Once data is recorded on the blockchain, it is difficult to modify or delete. Since each block is associated with the previous block, modifying the data of one block requires modifying all subsequent blocks simultaneously, which is very difficult. This provides the credibility and traceability of the data.
- Transparency: The transaction information on the blockchain is visible to all participants. Each node can verify the effectiveness of transactions, ensuring the transparency and openness of data. This helps to establish trust and provide a fair trading environment.
