# Blockchain

Understanding Blockchain Technology

• Blockchain is a decentralized digital ledger that enables secure and transparent peer-to-peer transactions without the need for intermediaries.

Fundamental Principles of Blockchain
Blockchain is a decentralized technology that operates on the following fundamental principles: 1. Decentralization: Blockchain operates on a distributed network of computers, known as nodes, where no single entity has control over the entire system. This ensures that no central authority can manipulate or control the data. 2. Transparency: All transactions and data stored on the blockchain are visible to all participants in the network. This transparency promotes trust and accountability among users. 3. Immutability: Once a transaction is recorded on the blockchain, it cannot be altered or deleted. This ensures the integrity and security of the data stored on the blockchain. 4. Security: Blockchain uses cryptographic techniques to secure transactions and data. Each transaction is verified by multiple participants in the network, making it difficult for malicious actors to tamper with the data. 5. Consensus Mechanism: Blockchain relies on a consensus mechanism, such as Proof of Work (PoW) or Proof of Stake (PoS), to validate and agree on the state of the blockchain. This ensures that all participants reach a consensus on the validity of transactions. These principles form the foundation of blockchain technology and enable its various applications, such as cryptocurrencies, smart contracts, and supply chain management.