The term “blockchain” comes from the way the technology structures and stores data. Here’s why it’s called “blockchain”: (Block + Chain = Permanent Record)
- Blocks: Think of blocks like digital containers. Each block holds a group of related information, like a bunch of receipts stored together. Once this container is full, it’s closed and connected to the previous one in line.
- Chain: These containers (blocks) are linked together in the order they were filled, creating a continuous chain. Each new container has a special code that ties it back to the previous one, making sure everything stays connected in the right order.
- Permanent Record: Because these containers are linked in a chain, and each one is securely tied to the one before it, changing anything inside a container would mess up the whole chain. This makes the entire chain very secure and nearly impossible to alter, ensuring that the information remains trustworthy.
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