A blockchain is basically an assortment of a decentralized database that keeps on recording information in chronological order using blocks of data which are linked. Each block consists of a collection of transactions or records which have been verified and once the block is complete it is joined to the preceding one, thus forming an unbroken digital chain. The information is not kept in one place, but rather it is spread out and kept in thousands of computers which are referred to as nodes and that together keep and validate the network.
The three main attributes of blockchain that set it apart are, decentralization, transparency, and immutability. The database is controlled by none, thus it is censorship and tampering proof. Every user has access to the data that has been recorded so it is definitely transparent. Once the data is added, it cannot be modified or removed without the permission of the whole network, hence it has high integrity and security.
This technology underlies the most popular cryptocurrencies like Bitcoin and Ethereum, but the scope of its application goes beyond that. Today firms are utilizing blockchain technology to monitor the movement of products in supply chains, authenticate digital identities, manage medical records, and protect electronic voting systems. To put it simply, blockchain is a shared, unalterable ledger that creates trust between unknown parties—without a central authority to control the data.
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