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A back to basics guide - Blockchain

At its core, a blockchain is a digital ledger that records transactions in a secure and transparent way. Each block in the chain contains a digital record of several transactions, and once a block is added to the chain, it cannot be edited or deleted. Here's how it works:

  1. Someone initiates a transaction on the blockchain. For example, let's say Alice wants to send Bob some Bitcoin.

  2. The transaction is verified by a network of computers called "nodes." These nodes use complex algorithms to check that the transaction is valid and not an attempt at fraud.

  3. Once the transaction is verified, it is added to a block along with several other transactions. The block is then broadcast to the entire network.

  4. The network of nodes then confirms that the block is valid and adds it to the existing blockchain. Once a block is added, it becomes part of the permanent record and cannot be altered.

  5. The next block in the chain is then generated, and the process starts all over again with new transactions.

Because the blockchain is decentralized and maintained by a network of nodes, it is extremely secure and resistant to tampering. This is because in order to edit a block, an attacker would need to control more than 50% of the network, which is virtually impossible. Blockchains are most commonly associated with cryptocurrencies like Bitcoin and Ethereum, but they have many other potential applications. For example, they could be used to secure supply chains, track the ownership of digital assets, or even conduct secure online voting.

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