InfoSearched
Published -
- August 2, 2019
- 7:19 pm
What is a blockchain and how do they work?
I’ll explain why blockchains are so special in simple and plain English!
What are the advantages of using blockchain technology over traditional banking and financial systems?
Blockchain technology is fast becoming the talk of the tech world, as it has emerged in recent years as a significant innovation for securely storing and sharing data online. A blockchain is a decentralized digital ledger system that stores data securely and publicly in a distributed and secure network. In this article, we will explain how a blockchain works in simple terms.
A blockchain is a network of computers that record and approve transactions. Whenever a transaction is made, it is verified by multiple computers on the network, which helps to ensure its accuracy and integrity. Once verified, this information is then added to a block of data, and that block is then added to the blockchain. The newly created block is linked to the existing blocks in a chain, hence the name blockchain.
Each block in the chain contains transaction information and a unique code called a hash, which helps to maintain the integrity of the information contained within each block. Once a block is added to the chain, it cannot be changed or deleted without being detected, making the entire system highly secure against tampering or fraud.
The decentralized nature of the blockchain network ensures that the ledger is transparent, and all transactions can be traced and audited at all times. Everyone connected to the network has access to the same information, eliminating the need for intermediaries or central authorities to validate transactions. This means the process is simpler, faster, and more cost-efficient than traditional banking and financial systems.
The blockchain is highly flexible and can be utilized for many purposes beyond just financial transactions. It can be used to securely store and share data of all kinds, including medical records, supply chain information, and even voting data.
In conclusion, blockchain technology is a revolutionary innovation in the world of online data storage and sharing. Its decentralized nature and high level of security make it an ideal solution for a wide range of industries and applications. As more businesses adopt blockchain technology, it’s only a matter of time before it becomes an essential part of our daily lives.
