In Web3, Blockchain plays a major role in different aspects, as an advanced database mechanism that allows transparent sharing of information within a network.
Key characteristics of Blockchain Technology include:
Decentralization: Blockchain operates on a peer-to-peer network which makes it less prone to censorship or control by a single entity.
Security: It uses advanced cryptography and interlinking of blocks, which makes difficult to alter past transactions thus providing security against rampering and fraud.
Consensus Mechanism: Networks in Blockchain employs this method to achieve agreement and trust across the network and to verify transactions.
4. Transparency: The transparency of blockchain allows all participants to view and audit the entire transaction history.
Blockchain technology can be applied in various sectors such as: Decentralized applications(dApps), smart contracts, creation and operation of cryptocurrencies, chain management. Also, very applicable in real life such as; healthcare, banking and finance, and voting.
Although Blockchain seems promising, it still faces some challenges like: regulatory concerns, massive use of energy, public understanding and adoption.
However, you should understand that Web3 technologies are built on top of decentralized technologies such as Blockchain, hence, it becomes clear that blockchain is the basis for Web3.
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