Think about a blockchain as a digital file containing blocks of data. Similar to pages written on a record book, each block has a list of transactions. It’s unique in the way the blocks are put together; Once completed, they get connected to the preceding one making an immutable chain.

Visualize now this ledger replicated in a network of computer each and every second synchronized with each other. This is decentralization. The entire chain is not controlled by a single entity, thus ensuring its transparency and resistance to manipulation.

Consensus among participants in the network is reached during the mining process used to add a new transaction. This means solving difficult mathematical puzzles which are used for validation of transactions and ensuring security of miners. It inserts an additional record in the block.

Its security is what makes it beautiful. Changing a single block entails changing all subsequent blocks across the network, which is very hard since this demands huge computer power.

Cryptographically secured distributed ledger that offers transparency, security and anonymity forms basis for Bitcoins. Blockchain has applications beyond finance to boost transparency, minimize fraud, and transform traditional operations in many sectors.