In this post, we’ll unpack all you need to know about Blockchain, defining exactly what it is, how it works, examples of real-world use cases and more.
What Is Blockchain?
Blockchain is a digital decentralised public technology that provides a way to store information in a secure, transparent and tamper-proof manner. More simply, it is a database of who owns what and who owes what.
How Does Blockchain Technology Work?
A blockchain operates through a network of computers, referred to as nodes, each holding a copy of the entire blockchain.
When a new transaction occurs, the data is stored in a block. This block is then broadcast to the network, where it is checked against the blockchain’s history to verify its authenticity. Once approved, the block is added to the previous block, thus creating a chain of blocks.
This decentralised and consensus-based method ensures the network is highly secure, transparent and resistant to modification.
What Are Real-Word Use Cases For Blockchain Technology?
Blockchain technology has a wide range of real-world applications, including:
- Finance: The technology can be used to create more secure and efficient financial systems without the need for a central authority.
- Supply Chains: The technology can be used to improve the efficiency and transparency of supply chains by enabling real-time tracking of products.
- Voting: The technology can be used to provide a secure, transparent and tamper-proof platform for voting in elections. This can therefore reduce fraud and increase trust.
- Healthcare: The technology can be used to store patient medical records in a secure and tamper-proof way while also reducing costs.
- Asset Tokenization: The technology can be used to create digital tokens (NFT’s) that represent ownership of real-world assets, thus enabling fractional ownership and easier trading.
It’s important to remember that more use cases are likely to be created as time goes on, as blockchain technology develops and as adoption increases.
Summary (TL;DR)
Blockchain is a decentralised ledger technology that can store information in a secure, transparent and tamper-proof manner.
The technology works by storing data in blocks that are linked together in a chain. Each block contains a timestamp and is linked to the previous block. This creates a chain of blocks, which are secure and also tamper-proof.
There are a range of real-world use cases for Blockchain including finance, supply chains, voting, healthcare and finally asset tokenisation.
