What is Blockchain Technology? A guide for beginners.

Blockchain is a digital, decentralized ledger that records transactions across many computers so that the record cannot be altered retroactively without the alteration of all subsequent blocks and the collusion of the network. It was originally created to serve as the public transaction ledger of cryptocurrency bitcoin, but other uses are now emerging. This means for blockchain to work, it needs people to run software on their individual computers. It doesn't rely on an institution like a bank or government to operate.

What is Blockchain?

The blockchain is a new type of database that records bitcoin transactions.

Blockchain was invented in 2008 to serve as the public transaction ledger of the cryptocurrency bitcoin.

Skeptics predicted that bitcoin couldn't survive without an authoritative body like a bank or government to issue new coins and track transactions.

Nearly 10 years later, bitcoin is alive and well, and its underlying technology has created excitement in both the private and public sectors because of its potential to upend many of today's business practices.

Why is it important?

Blockchain is an emerging technology that has the potential to change how we think about our finances, intellectual property law, and more. The decentralized ledger means it doesn't rely on an institution like a bank or government to operate. Instead, people running software on their individual computers make up the network.

Many experts say blockchain will change the world of finance. It's already making big moves in India, where 90% of all transactions are made using cash. That lack of digital infrastructure could hamper the country's growth in the future, but blockchain may be able to help overcome these barriers. It could also change how we vote and create laws in democratic countries by providing transparency for all of us to see what’s happening behind closed doors.

Blockchain is an emerging technology with the potential to change how we think about our finances, intellectual property law, and more. The decentralized ledger means it doesn't rely on an institution like a bank or government to operate. Instead, people running software on their individual computers make up the network.

How does it work ?

The blockchain is a distributed database. This means, for example, that instead of having a single bank managing transactions, you have multiple banks each with their own copy of the ledger.

Blockchain technology uses cryptography to keep data secure. It provides an immutable record of digital events that are incorruptible because they're verified by the entire community rather than just by one entity.

At its core, this is how blockchain technology works. It's important to remember that it's not just about bitcoin!

What can you do with blockchain outside of Cryptocurrency?

Blockchain technology is in its infancy and has a ton of potential.

DocuSign, for example, is using blockchain to verify the integrity of agreements and create immutable versions of them. What does this mean? It means they can’t be tampered with and no one can deny having seen it. You don't have to worry about getting ripped off or being told you agreed to something you didn't want. Blockchain offers security for any document that needs it.

There are also implications for voting methods. Because blockchain is decentralized, it offers the opportunity to eliminate fraud so people can vote anonymously while still maintaining accountability. It could also be used to create laws. Imagine if our lawmakers created laws through a process that's transparent and incorruptible, where the public could view what they're proposing before voting on it.

Conclusion

Blockchain technology is the future of transactions and data storage. It has the potential to disrupt many industries and has already shown its worth in the financial sector. Hopefully this guide has given you a basic understanding of how blockchain technology works and why it is such a significant development for the future.