Blockchain is a type of database that stores information; It can also be thought of as a digital ledger that keeps track of your transactions.
Cryptocurrency and blockchain have become buzzwords these days. While cryptocurrency was a bit easier to understand as a concept, the blockchain technology that the cryptocurrency runs on was complex to understand. In the simplest of terms, blockchain can be defined as a database that stores the data in blocks. In these blocks, information is recorded in such a way that it is difficult to hack, defraud or modify the system. Since blocks of information form a chain, hence the name blockchain.
How Does It Work?
A blockchain is essentially a digital ledger that keeps a record of all transactions carried out on the system. These transactions are then duplicated to be reflected across all computer systems active on the blockchain. Every time a new transaction is carried out the blockchain stores the data on that participant’s block and is reflected across all digital ledgers on that network. All transaction data present on the systems of the blockchain can be accessed from any part of the world.
Every time data is stored in a block, an irreversible timestamp is created when it becomes part of the chain. Blockchain is a decentralized database and is managed by several participants; it is known as Distributed Ledger Technology (DLT).
With Cryptocurrency
Advantages Of Blockchain
Blockchain technology is extremely secure and offers transparency. All users who are part of the blockchain network can access the stored information. The technology is decentralized, which means that there is not a single government agency with access to all data and information. Instead, several participants who have free access to all data available on the blockchain. The blockchain is difficult to hack and break because the blocks are linked. To break a block, the hacker would have to break all blocks on the network.
