The blockchain can also be called Distributed Ledger Technology (DLT). It rides on the concept of transparency, immutability, and security. It records data, and once a transaction completes, you cannot alter the transaction data.
WHY SHOULD YOU CARE ABOUT UNDERSTANDING HOW BLOCKCHAIN WORKS?
The world has built several things on the blockchain in the past couple of years. As the world heads into the internet’s next phase – web3, it will lead to the invention of more infrastructure and applications.
The blockchain takes the traditional ledger process up a notch to create a triple-entry book-keeping model. Thanks to this, it’s impossible to tamper with records on the blockchain.
Bitcoin is a protocol built on a blockchain. It was first outlined by two researchers who wanted to create a system where document timestamps could not be tampered with.
It creates a new block and gets a unique identification key through cryptography. Deriving the new key for the new block always involves the previous block.