Understanding Blockchains

Blockchain technology is the foundation that makes cryptocurrencies like Bitcoin possible. It works as a digital ledger that records transactions across many computers, making it nearly impossible to change or hack past records. Each “block” contains transaction data that links to previous blocks, creating a secure chain of information. Blockchains remove the need for banks or other middlemen by letting people transact directly with each other. Beyond just cryptocurrencies, blockchains are being used for smart contracts, supply chain tracking, and new financial services. Learning how blockchains work helps you better understand the digital assets you might invest in and why they have potential value.