A reliable, difficult-to-hack record of transactions – and of who owns what. Blockchain is based on distributed ledger technology. It securely records information across a peer-to-peer network. It was originally created for trading Bitcoin, blockchain’s potential reaches far beyond cryptocurrency.
How Blockchain Works?.
Blockchain is a cloud based database shared by every participants in a given system. Below figure shows a transaction of currency trading. The blockchain contains the complete transactions of the cryptocurrency or other records keeping in other applications. Think of it as a cloud based peer to peer ledger.
Why Block Chain?.
- Blockchain ledgers can include land titles, loans, identities, logistics manifests – almost anything of value.
- The technology is still new, but the potential impact it can have on business is exciting and immense.
- It is a cryptographically secure distributed database technology for storing and transmitting information.
- Each record in the database is called a block and contains details such as the transaction date and a link to the previous block.
- Advantage of blockchain is that it is decentralized.
- No one controls the data entered or their integrity.
- As long as the network exists, the information remains in the same state.