Blockchain is a chain-like data structure that connects data blocks sequentially in time order, ensuring an immutable and tamper-proof distributed ledger through cryptographic methods. Its core elements mainly include blocks, peer-to-peer networks, and consensus mechanisms. A "block" is the primary component of blockchain technology. It is a data packet that carries data information on the blockchain network, recording all transactions or other data generated and verified during the block creation process. The peer-to-peer network is the networking method of blockchain, where each node has equal and autonomous characteristics, with the capabilities of routing discovery, transaction broadcasting, block broadcasting, and discovering new nodes. The consensus mechanism ensures that each node can efficiently reach a consensus on the validity of block data.

Compared to other technologies, blockchain has characteristics such as decentralisation, immutability, and traceability. In a blockchain network, each node can equally participate in uploading, updating, receiving, and verifying data. Any data uploaded by a node is broadcast to the entire network, ensuring the consistency and completeness of stored data across all nodes. In terms of the trust mechanism, cryptographic principles like hash algorithms ensure this without the need for an additional trust intermediary. Each node in the system can exchange data without deceiving each other, significantly reducing trust costs. Data is permanently stored in blocks, with each block generated and connected in sequence, accurately recording all transaction information that occurs during its creation. This information is distributed and stored across each node, ensuring data security and traceability.

Blockchain technology is not a single information technology but a unique integration and innovation based on existing technologies, creating a new way of establishing trust. Blockchain technology has roughly gone through three development stages: the technological origin stage, the digital currency stage, and the smart contract stage. Currently, the applications of blockchain have extended to multiple fields, including the Internet of Things (IoT), smart manufacturing, supply chain management, and digital asset trading.

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