What is Blockchain?
The popular definition of blockchain is “a time-stamped series of immutable records of data that is managed by a cluster of computers not owned by any single entity.” Each “block” of data is secured and bound to each other using cryptographic principles that form a “chain.” A blockchain network has no central authority because it is technically a shared ledger. The information contained in a blockchain network can be seen by anyone, which means it is completely transparent. As a result, everyone involved in the network is accountable for his or her actions.
Blockchain is a simple, automated and safe way to pass information from point A to point B. On one end, the party creating a block initiates the transaction. The block is then verified by thousands, or even millions, of computers spread across the internet. Once verified, the block is added to a chain, which is stored across the network, creating a unique record with a unique history that is decentralized and distributed. From this point, it would be virtually impossible for hackers to falsify a single record because they would need to access and alter the data on all linked computers at precisely the same time.
The allure of blockchain is that it maximizes accessibility, security and accountability. It not only allows the user to transfer and store money, it can also replace all processes and business models that rely on charging a fee because blockchain transactions are free.