Blockchain is a distributed ledger that is maintained on a peer-to-peer network. It is a decentralized system that allows multiple parties to access and update the ledger simultaneously, without the need for a central authority. A blockchain is essentially a database that is spread across a network of computers, each of which has a copy of the database.

How does blockchain work?

The blockchain works by recording transactions in blocks, each of which is linked to the previous block. Once a block is added to the blockchain, it cannot be altered or deleted, making it an immutable record of all the transactions that have taken place on the network. The blockchain is secured through cryptography, which ensures that the data on the network is tamper-proof and cannot be altered without detection.

Advantages of blockchain

- Decentralization: The blockchain is a decentralized system that allows multiple parties to access and update the ledger simultaneously, without the need for a central authority.

- Transparency: All the transactions on the blockchain are transparent and visible to all participants on the network, which makes it a trustworthy system.

- Security: The blockchain is secured through cryptography, which ensures that the data on the network is tamper-proof and cannot be altered without detection.

- Efficiency: The blockchain is an efficient system that allows for fast and secure transactions, without the need for intermediaries.

- Trust: The blockchain is a trustworthy system that allows for secure and transparent transactions, which can build trust between parties on the network.

Applications of blockchain

- Cryptocurrencies: The blockchain is used as the underlying technology for cryptocurrencies like Bitcoin, Ethereum, and Litecoin.

- Supply Chain Management: The blockchain can be used to track the movement of goods and services in a supply chain, ensuring transparency and efficiency.

- Healthcare: The blockchain can be used to store and share medical records securely and efficiently.

- Voting: The blockchain can be used to create a secure and transparent voting system, ensuring that the results are accurate and trustworthy.

Conclusion

In conclusion, the blockchain is a distributed ledger that is maintained on a peer-to-peer network. It is a decentralized system that allows multiple parties to access and update the ledger simultaneously, without the need for a central authority. The blockchain is secured through cryptography, which ensures that the data on the network is tamper-proof and cannot be altered without detection. The blockchain has numerous advantages, including decentralization, transparency, security, efficiency, and trust. The blockchain has numerous applications, including cryptocurrencies, supply chain management, healthcare, and voting.

Option A is the correct answer because Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system.

A blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain. Each block in the chain contains a number of transactions, and every time a new transaction occurs on the blockchain, a record of that transaction is added to every participant’s ledger. The decentralised database managed by multiple participants is known as Distributed Ledger Technology (DLT).

Blockchain is a type of DLT in which transactions are recorded with an immutable cryptographic signature called a hash.

 
This means if one block in one chain was changed, it would be immediately apparent it had been tampered with. If hackers wanted to corrupt a blockchain system, they would have to change every block in the chain, across all of the distributed versions of the chain.

Blockchains such as Bitcoin and Ethereum are constantly and continually growing as blocks are being added to the chain, which significantly adds to the security of the ledger.

 

Why is there so much hype around blockchain technology?

There have been many attempts to create digital money in the past, but they have always failed.

The prevailing issue is trust. If someone creates a new currency called the X dollar, how can we trust that they won't give themselves a million X dollars, or steal your X dollars for themselves?

Bitcoin was designed to solve this problem by using a specific type of database called a blockchain. Most normal databases, such as an SQL database, have someone in charge who can change the entries (e.g. giving themselves a million X dollars). Blockchain is different because nobody is in charge; it’s run by the people who use it. What’s more, bitcoins can’t be faked, hacked or double spent – so people that own this money can trust that it has some value.