Blockchain simplified - what is blockchain in 10 points
27th Jun 2018
- A Blockchain is a chain of blocks that contains information. Conceptualised by researchers in 1991 originally to time-stamp digital documents.
- Was adopted by Satoshi Nakamoto in 2008 for use in the cryptocurrency Bitcoin.
- Bitcoin is the biggest and most known product built using Blockchain but blockchain is not limited to cryptocurrency
- Blockchain is essentially an open digital ledger that can record transactions between multiple parties efficiently in a verifiable and permanent way.
- Using blockchain, once data is recorded, the data in any given block cannot be altered without the alteration of all subsequent blocks, this making blockchain secure by design.
- Decentralised consensus has therefore been achieved with a blockchain.
- Blockchain is suitable for the recording of events, medical records and other records management like identity management, transaction processing, documenting provenance, food traceability or even voting to name a few and can be used for Ecommerce too to keep a track of product ownership.
- Simply put, blockchain is a continuously growing list of records, called blocks, which are linked and secured using cryptography.
- A blockchain is inherently resistant to modification of the data and hence secure.
- Blockchain is transparent and incorruptible as it solves the problem of manipulation.