How does blockchain technology ensure security and transparency?

Blockchain technology ensures security and transparency through the use of a decentralized digital ledger that spans multiple computers, often referred to as nodes. In this system, each transaction or data entry is recorded in a block, and these blocks are linked together in chronological order to form a chain.

One key feature of this decentralized approach is that all nodes within the network maintain a complete copy of the ledger. This simultaneous access means that all participants can independently verify transactions, eliminating the need for a central authority. It also enhances security since there is no single point of failure; altering data in one copy of the ledger would not affect the others, and any tampering would be easily detectable by other nodes.

Additionally, the cryptographic techniques employed in blockchain ensure that once a block is added to the chain, it is immutable. This means records cannot be retroactively altered without consensus from the network, maintaining the integrity of the information. Thus, the decentralized nature of blockchain combined with its distributed ledger technology fosters both security and transparency, as all transactions are publicly verifiable and resistant to tampering.