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What Is Blockchain? and How it works?

Blockchain is a decentralized technology that eliminates the need for a  central authority, allowing multiple parties to maintain a shared  database or ledger.

Transactions are grouped into blocks and linked together in a  chronological order, forming a chain. Each block has a unique identifier  called a hash, which includes the previous block's hash.

Consensus mechanisms ensure agreement among participating nodes when  adding a new block. This often involves a competitive process where  nodes solve complex puzzles, and the winner adds the next block.

Once a block is added, the information becomes immutable. Changing data  in a previous block would require altering the hash of that block and  all subsequent blocks, which is computationally infeasible.

Blockchain provides transparency and security by allowing participants  to view and verify transactions. Its decentralized nature prevents  manipulation and enhances security by eliminating a single point of  failure.