Blockchain technology is the underlying technology behind cryptocurrencies like Bitcoin. It is a decentralized and distributed ledger system that allows multiple parties to have a shared view of the data, without the need for a central authority.

In the case of cryptocurrencies, the blockchain is a public ledger of all transactions that have occurred on the network. Each block in the chain contains a record of several transactions, along with a reference to the previous block in the chain.

The blocks are linked together in a way that makes it virtually impossible to tamper with the data. Each block contains a cryptographic hash of the previous block, creating a chain of blocks that are cryptographically linked.

When a new transaction occurs on the network, it is broadcast to all nodes in the network. The nodes then validate the transaction and add it to a block. Once the block is complete, it is broadcast to the network and added to the chain.

In order to add a block to the chain, nodes must solve a complex mathematical problem. This process, known as mining, requires significant computational power and is designed to prevent malicious actors from manipulating the blockchain.

Once a block has been added to the chain, it cannot be altered or deleted without changing all subsequent blocks in the chain. This makes the blockchain a secure and tamper-proof ledger that is ideal for recording financial transactions.

Overall, blockchain technology provides a secure and transparent way to manage digital assets like cryptocurrencies, without the need for a central authority or trusted intermediary.

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