What is Blockchain – Basics

Blockchain is a new invention of the 21st century, which was introduced by a person or group of people known under the pseudonym Satoshi Nakamoto. The idea grew into something bigger. But what is Blockchain? Simply put, it is a series of immutable records of time-stamped data that are managed by a cluster of computers that are not owned by any entity. Each of these blocks of data (called a Block) is secured and linked together using cryptographic rules (called a Chain). Blockchain allows digital information to be distributed, but it does not copy it. It was initially developed for the digital currency Bitcoin, but new applications for this amazing technology are already being found.

How Blockchain Works

Information stored in a blockchain exists as a shared and constantly agreed database. This is a way of using the network that has obvious advantages. The blockchain database is not stored in any single location, which means that the records it stores are truly public and easy to verify. There is no centralized version of this information for a hacker to corrupt. Hosted by millions of computers simultaneously, its data is available to anyone on the Internet.

An example would be a spreadsheet that is duplicated thousands of times across a network of computers. That network is tasked with regularly updating that spreadsheet.

The reason blockchain has gained so much admiration is because:

• It is not owned by a single entity, so it is decentralized
• Data is cryptographically stored inside
• The blockchain is immutable, so no one can tamper with the data on it
• The blockchain is transparent, so you can track this data whenever you want