Blockchain technology is a type of data structure that makes possible to create a digital ledger of transactions. There’s no single entity in charge of this ledger, which cuts out the middleman and reduces overall costs for the network. This innovative technology is mostly popular in the cryptocurrency and NFT. It is being tested for other uses such us payment processing, supply chain, healthcare and more.
Definition
A blockchain is “a distributed database that maintains a continuously growing list of ordered records, called blocks.” These blocks “are linked using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. A blockchain is a decentralized, distributed and public digital ledger that is used to record transactions across many computers so that the record cannot be altered retroactively without the alteration of all subsequent blocks and the consensus of the network.”
What are the benefits?
Primarily blockchain is a database for recording transaction, but more than that it removes possibility of tampering the data. Using this technology businesses benefits with shorter time for transactions (from days to minutes), save cost by allowing direct transactions between participants and provide a tighter security features that protect against tampering, fraud, and cybercrime.
How Does Blockchain Work?
Blockchain consist in three important concepts: blocks, nodes and miners. When the first (data) block of a chain is created, a nonce (number used only once) generates the cryptographic hash (number permanently attached to the nonce). The data in the block is considered signed and forever tied to the nonce and hash unless it is mined.
Usage of Blockchain
While blockchain capabilities are growing, blockchain technology is being used far beyond just its roots. Alongside banking and finance, blockchain is revolutionizing healthcare, record-keeping, smart contracts, supply chains and even voting.
