The Blockchain Technology is a fully decentralized database. Or you can call it a ledger, that records transactions in a network, making the data transparent and safe from being manipulated. It builds trust, security and efficiency across the digital industry.
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In Blockchain the word BLOCK represent stored data in units. While CHAIN shows that all the blocks are linked together in a chronological order to form the chain.
With the help of this two, once a transaction is recorded it can not be erased or modified.
Blockchain is important because it reduced costs and delays in financial transactions making everything transparent no hidden transactions.
How does Blockchain really work
I will use a classroom of 26 students as an example
Image one of the student has a very large book and it's used to record all the financial transactions in the class. In this book you can only write on it, you can change or edit what you have written. (That's the Blockchain)
child A wants to make a transaction to child M. A transaction needs to happed, in real this can be money or a record.
The transaction is grouped into a block (that means one page of the book is opened where everyone details are)
The block needs to be verified by the network (all the students from child A to child Z needs to confirmed and agree that the transaction is valid)
The block is asses to the chain and the transaction is recorded. Onced this transaction is recorded child A can not edit it or delete it. And the transaction will be move from him to child M. Everyone can see Child A transaction history same with other people. That's why it's called open network.
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Blockchain Technology can be used in different fields like as mainly uses in cryptocurrency. It's used in business to track goods from origin to destination. And in voting system since when a data is registered it can't be altered again. And a lot more.
Blockchain offers the benefits of security because the hacker must hack all the blocks to gain access to anything in it which they can not.
It's transparency no hidden transaction that's why it builds trust and gives room to decentralization of assets.
Am @theycallmevick I write about little things we should know about crypto currency and AI technology.
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The decentralised nature of Blockchain is what makes it interesting.
@theycallmevick
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