What is a Blockchain?
A blockchain is a decentralized digital ledger technology that records transactions across numerous computers. This ensures that the recorded information cannot be altered retroactively without the alteration of all subsequent blocks, requiring consensus from the network participants.
Key Characteristics
- Decentralization: Unlike traditional databases, no single entity controls the blockchain. This reduces the risk of centralized corruption or failure.
- Transparency: Every transaction is visible to all participants, ensuring trust among parties.
- Immutability: Once data is recorded on the blockchain, it is nearly impossible to change, ensuring the integrity of the information.
How it Relates to Smart Contracts
Smart contracts are self-executing contracts with the terms of the agreement directly written into code, running on the blockchain. This technology allows them to operate securely and automatically, reducing the need for intermediaries.
Conclusion
In summary, blockchain is the foundational technology that revolutionizes various industries, enabling transparent, secure, and efficient systems, particularly in areas like smart contract development.