FAQs about Blockchain

Blockchain is a decentralized, digital ledger that records transactions across multiple computers. It ensures transparency, security, and immutability of data without needing a central authority.

Each transaction is recorded in a "block." These blocks are linked in chronological order, forming a "chain." Once added, data in a block cannot be altered without changing all subsequent blocks, making the system tamper-resistant.

• Transparency
• Security
• Decentralization
• Fast and cost-effective transactions
• Reduced fraud and errors

No. Blockchain is the technology, while Bitcoin is a cryptocurrency built on blockchain. Many other applications beyond cryptocurrencies use blockchain too.

Smart contracts are self-executing programs stored on a blockchain. They automatically enforce rules and agreements once predefined conditions are met, without human intervention.

While no system is 100% hack-proof, blockchain is extremely secure due to its decentralized and cryptographic structure. However, vulnerabilities may still exist in platforms built on top of blockchain.

A dApp is an app that runs on a blockchain network instead of centralized servers. It offers increased transparency, user control, and resilience to censorship.

• Finance (cryptocurrencies, DeFi)
• Supply chain management
• Healthcare (secure medical records)
• Real estate
• Voting systems
• Entertainment (NFTs)

• Public blockchain: Open to anyone (e.g., Bitcoin, Ethereum).
• Private blockchain: Restricted access, used within organizations for internal use.

Mining is the process of validating and adding new transactions to a blockchain (mostly in Proof-of-Work systems like Bitcoin), involving complex computations and energy consumption.

They’re pseudonymous. While wallet addresses are visible, they don’t directly reveal personal identities—though transactions are publicly accessible.

• Proof of Work (PoW): Requires computational effort to validate transactions.
• Proof of Stake (PoS): Validators are chosen based on how many coins they "stake" or lock up.

Traditional databases are centralized and modifiable. Blockchains are decentralized and immutable, with data structured as interconnected blocks.

It’s a digital tool that allows users to store, send, and receive cryptocurrencies and interact with blockchain applications.

Yes, in most countries. But its uses—especially involving cryptocurrencies—may be regulated differently depending on national laws.