What blockchain technology is,
Blockchain technology is simply a distributed and shared “ledger system” which records data, digitally, on a network of computers, in a way in which that the data cannot be changed, manipulated or erased.
It is used for accountability, and to avoid any single point of failure.
What it’s used for,
Blockchain can be used to protect data, heighten security, and optimize accountability in numerous industries, such as:
- banking, finance, FinTech, Lending, remittance
- Cloud Storage and cyber-security
- supply-chain management
- Medical, insurance, Health Care
- Wills and inheritance, Land Title, Legal and law enforcement
- Music, copyright, artist compensation, and allocation
- and many moreand what people should generally know about this up-and-coming technology.
Blockchain has created the “internet of value” and accountability and its use cases in industry are only recently being built to fruition.
Blockchain technology should not be seen as something to replace all traditional databases, but it can be used in some cases to make our lives and business experiences faster, and more efficient and effective.
How it works,
A blockchain is created by a distributed network of computers (called “nodes”) run by participants of the network, who share and record data entries in real time.
In other words, everyone receives the latest and most updated “copy” and each “copy” is recorded and shared by the network, as a consecutive record (called a “block”).
The recording of a new block (time-stamp) is called “consensus” and any changes can only be made within a subsequent block.
Each subsequent block forms a “chain,” hence the term “blockchain.”
Because of the shared ledger and series of blocks, any changes can be referenced and sourced chronologically, and with the agreement of the entire network that they were made when and as described.
The greater the distribution and number of participants, the more difficult for one member or a group of members to collude with a majority of the rest to override the information contained in any preceding block.
Here are two primary types of blockchain models:
DECENTRALIZED – A “decentralized” blockchain is a “permission less’ ledger which is 100% publicly transparent and permission for access is not required.
PERMISSION – A “permissioned” blockchain is a distributed ledger system for which “trusted participants” are allowed access to the system