as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
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in a short paragraph, explain how a blockchain works.
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a blockchain is a distributed ledger technology that enables the recording, tracing and approval of digital data in a secure, decentralized manner. it is made up of individual blocks, each containing a cryptographic hash of the previous block, a timestamp and transaction data. this data is then distributed among multiple computers on the network, making it impossible to manipulate or tamper with. every time a new transaction takes place, it is validated by the network and once approved, it is added to the chain with an updated timestamp and the new block. this ensures a complete and secure record of all activity that takes place on the blockchain.
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