- Blockchain technology is like a shared record-keeping system, accessible to everyone on a network.
- They said transactions are recorded in blocks and linked together with cryptography for security.
- This creates a tamper-proof chain of data.
- They mentioned key features of blockchain technology including being decentralized, secure, and transparent.
- Decentralized means no single entity controls it, and secure means cryptography protects the data.
- Transparency allows anyone to view the blockchain, fostering trust and immutability, which means data cannot be erased.
- The explanation then described how blockchain works, outlining steps like initiating a transaction, verification by network participants, adding a block, using cryptographic hashing to link the blocks together, and finally adding the new block to everyone's ledger on the network.
- They continued by mentioning applications of blockchain technology beyond cryptocurrency, including tracking goods in supply chains, enhancing security in voting systems, storing and managing digital identities securely, and maintaining tamper-proof records.
- Limitations of blockchain technology were also discussed, including scalability challenges for processing large volumes of transactions, the high energy consumption required for verification (mining), and the fact that regulations for blockchain applications are still being developed.
- Overall, the explanation highlighted the potential of blockchain technology to transform various industries by promoting trust, security, and transparency in data-driven processes.
