It is the technology that powers cryptocurrencies like Bitcoin. You’ve probably heard it mentioned on financial news or seen people talking about Bitcoin and Blockchain in social media. But what exactly is it? Is it just a new way to transfer money electronically? Or does it have some more important uses than just that?
A blockchain is a growing list of records, called blocks, that are securely linked together using cryptography. Each block contains a cryptographic hash of the previous block and transaction data (generally represented as a Merle tree). The timestamp proves that the transaction data existed when the block was published to get into its hash.
Therefore, blockchains are resistant to modification of their data because once recorded, the data in any given block cannot be altered retroactively without altering all subsequent blocks.
In simpler terms: euromoney defines blockchain as “a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system. A blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain.”
The concept of blockchain is not so hard to comprehend, it is without any doubt a technology that took the world by storm.
It is a matter of time before blockchain technology will be the norm of not only financial systems but also healthcare, realestate, media, supply chain and many more…
Also read: How does the blockchain work?