Blockchain is a type of distributed database or ledger shared among a computer networks nodes. It is best known for its crucial role in cryptocurrency systems for maintaining a secure and decentralized record of transactions, but it is not limited to cryptocurrency uses. Blockchains can be used to make data in any industry immutable, which means that it cannot be altered. Because there is no way to change a block, the only trust needed is at the point where a user or program enters data. This aspect reduces the need for trusted third parties, which are usually auditors or other humans that add costs and make mistakes.
A blockchain database stores data in blocks that are linked together in a chain. The data is chronologically consistent because you cannot delete or modify the chain without consensus from the network. As a result, you can use blockchain technology to create an unalterable or immutable ledger for tracking orders, payments, accounts, and other transactions. The system has built-in mechanisms that prevent unauthorized transaction entries and create consistency in the shared view of these transactions.
Nodes are incentivized with digital tokens or currency to make updates to blockchains. Blockchain allows for the permanent, immutable, and transparent sharing of information. Blockchain technology is a structure that stores transactional records, also known as the block, of the public in several databases, known as nodes, in a network.
In summary, blockchain is a secure and decentralized ledger that allows for the permanent and immutable sharing of information among a network of participants.
