Introduction
Blockchain is usually reduced to Bitcoin hype. That’s lazy thinking. Cryptocurrency is only one use case. Blockchain is a data structure designed to remove the need for blind trust.
What Is Blockchain?
Blockchain is a distributed ledger that records transactions across multiple computers so records cannot be altered without consensus.
No central authority controls it.
How Blockchain Works
- Transactions are grouped into blocks
- Blocks are cryptographically linked
- Each new block depends on the previous one
- Network participants validate changes
Key Features
- Decentralization
- Transparency
- Immutability
- Security through cryptography
Beyond Cryptocurrency
- Supply chain tracking
- Digital identity verification
- Smart contracts
- Voting systems
- Cross-border payments
Limitations and Problems
- Scalability issues
- High energy consumption (some networks)
- Regulatory uncertainty
- Overhyped and misused projects
Common Misconceptions
- Blockchain is anonymous (it’s pseudonymous)
- Blockchain eliminates trust entirely (it changes how trust works)
Conclusion
Blockchain is a tool, not a religion. Used wisely, it solves trust problems. Used blindly, it creates expensive complexity.