Blockchain Explained: Key Questions Answered

1. What is Blockchain?

Blockchain is a decentralized digital ledger technology that records transactions across multiple computers in a secure, transparent, and tamper-proof manner. It forms the foundation of cryptocurrencies like Bitcoin but has broader applications in finance, supply chain, and more.

2. How Does Blockchain Work?

Blockchain works by grouping transactions into blocks, which are cryptographically linked (chained) in chronological order. Each block is validated by a network of nodes (computers) through consensus mechanisms like Proof of Work (PoW) or Proof of Stake (PoS), ensuring trust without a central authority.

3. What Are Crypto Wallets and Why Are They Important?

Crypto wallets are digital tools that store private keys to access and manage cryptocurrencies on the blockchain. They come in various forms (hardware, software, paper) and are essential for securely sending, receiving, and storing digital assets like Bitcoin or Ethereum.