Blockchain technology is the engine that drives cryptocurrencies' functionality. Many believe the decentralized nature of blockchains will change nearly every aspect of the world economy. However, from improving fintech, healthcare, and the supply chain to ensuring a democratic voting process in elections, the true power of blockchain remains to be seen.
Blockchains are distributed ledgers of data organized into chunks called blocks. Their design as peer-to-peer networks allows people to connect and exchange value without the need for an intermediary. In addition, since they are decentralized and users have access to all the data and transactions on the network, it's significantly harder to hack a blockchain or commit any fraud. This increased security and transparency make blockchain a perfect mechanism for data storage and transfer across various applications.
While cryptocurrencies are the most well-known use of blockchain technology, their potential extends far beyond digital currencies.
Bitcoin is a cryptocurrency that is powered by blockchain technology. So you can think of Bitcoin as a type of car and blockchain as the engine that powers it.
Myth: Blockchain Information stored is private.
The decentralized peer-to-peer nature of blockchains means that every block and its data can be visible by anyone with access to the network. This level of transparency can empower users like never before. For example, people could actively monitor the complete production cycle of items from their favorite grocery store