An important feature of blockchain is that there is no central controlling authority. Instead, data is stored in "blocks" that are linked to each other. Each block contains a hash of the previous block, which makes it impossible to subsequently change a block without being noticed.
Another important feature of blockchain is decentralization. Unlike traditional systems where a single entity is in control, blockchain is distributed across many different nodes. Each node has a complete copy of the blockchain, which helps make the system robust and resistant to attacks and failures.
Some of the application areas of blockchain are:
- Cryptocurrencies: As mentioned earlier, the original application of Blockchain was the management of cryptocurrencies.
- Financial services: Blockchain can be used to enable fast and secure money transfers without the need to involve third parties such as banks.
- Supply chain management: blockchain can be used to track the origin of products and ensure that they have been produced ethically and sustainably.
- Identity management: Blockchain can be used to create and manage secure and private identities.
