At the heart of every cryptocurrency lies a powerful innovation known as blockchain technology. A blockchain is a decentralized, digital ledger that records transactions in a secure, transparent, and tamper-proof way. Unlike traditional databases controlled by central authorities, blockchains operate across a distributed network of computers—called nodes—that work together to verify and confirm transactions. When a user sends cryptocurrency, the transaction is grouped into a “block” and added to the chain in chronological order after a consensus is reached among the network participants. This process, depending on the currency, can involve mechanisms like Proof of Work (used by Bitcoin) or Proof of Stake (used by Ethereum 2.0), which help ensure security and prevent fraud. The beauty of blockchain lies in its ability to create trust between strangers without a middleman, opening the door to applications far beyond currency—such as supply chain tracking, voting systems, and digital identity verification. Understanding how blockchain functions is essential to grasping the true value and potential of cryptocurrencies in shaping the future of technology and finance.