Understanding Blockchain Technology

Blockchain technology operates as a decentralized system where records are maintained and validated by multiple parties rather than a single authority. This is akin to a classroom attendance sheet where each student keeps their own record, ensuring transparency and discouraging tampering. Each transaction is grouped into blocks, linked sequentially to create a chain, with every block containing a unique code called a hash that reinforces security. This design makes it virtually impossible to alter past transactions without detection, as altering one block would compromise the entire chain, triggering alarms among network participants.