Blockchain technologies function as decentralized, distributed ledgers that record transactions across multiple computers. This decentralized nature ensures that no single entity has control over the entire network, enhancing security and transparency. Each transaction is grouped into a block, which is then validated by network participants (nodes) through consensus mechanisms such as Proof of Work (PoW) or Proof of Stake (PoS). Once validated, the block is added to the chain in a linear, chronological order, making it nearly impossible to alter previous records without consensus from the majority of the network.

Potential applications of blockchain extend across various industries:

1. Financial Services: Cryptocurrencies like Bitcoin and Ethereum enable peer-to-peer transactions without intermediaries, reducing costs and increasing transaction speed.
2. Supply Chain Management: Blockchain can track the provenance of goods, ensuring transparency and reducing fraud.
3. Healthcare: Securely sharing patient records across providers while maintaining privacy.
4. Voting Systems: Providing tamper-proof and transparent voting processes.
5. Smart Contracts: Self-executing contracts with terms directly written into code, reducing the need for intermediaries.