Decentralization: Instead of relying on a single central authority, blockchain uses a distributed network of nodes (computers) to validate and record transactions. This makes it difficult for any single entity to manipulate the system.
Cryptographic Security: Each transaction is encrypted and linked to the previous one, forming a chain of blocks. This cryptographic linkage ensures that once a block is added, it cannot be altered without changing all subsequent blocks, which is computationally infeasible.
Consensus Mechanisms: Blockchain uses consensus algorithms like Proof of Work (PoW) or Proof of Stake (PoS) to agree on the validity of transactions. These mechanisms require participants (miners or validators) to perform certain tasks or stake assets, ensuring that fraudulent transactions are rejected by the network.
Transparency: All transactions are recorded on a public ledger that is accessible to anyone. This transparency allows participants to verify transactions independently, reducing the risk of fraud and ensuring accountability.
Immutability: Once data is recorded in a blockchain, it is extremely difficult to alter. This immutability ensures that transaction histories are reliable and tamper-proof, providing a trustworthy record of events.
These features collectively enhance the security and transparency of digital transactions, making blockchain a robust solution for various applications
No comments:
Post a Comment