What are the key differences between blockchain and traditional systems?

What are the key differences between blockchain and traditional systems?

Blockchain systems are decentralized and secure, while traditional systems are often centralized and more vulnerable to fraud.

Can you explain how decentralization benefits blockchain?

Decentralization reduces the risk of a single point of failure and increases transparency, making it harder for malicious actors to manipulate data.

What are some real-world applications of blockchain?

Blockchain is used in various sectors, including finance for cryptocurrencies, supply chain for tracking goods, and healthcare for secure patient records.

Are there any downsides to using blockchain?

Yes, some downsides include scalability issues, high energy consumption, and regulatory uncertainty in some regions.

How does blockchain ensure security?

Blockchain uses cryptographic techniques and consensus mechanisms to secure transactions and prevent unauthorized access.