The Blockchain is an immutable, consensus-driven ledger of transaction data which is recorded and stored in a chain of connected blocks. Each block is a digital record of past transactions, and each block is cryptographically linked to the previous block in the chain.
This chain of blocks forms an ever-growing public database called the “blockchain”, which anyone can access. Each new block that is added to the blockchain contains all of the transaction data required to validate and authorize the transaction — including sender public key, receiver public key, amount of transaction, hash of previous block, etc.
Transactions in the blockchain are verified through cryptographic algorithms to ensure that all transactions are authentic and valid. This prevents double spending — sending the same funds twice — and helps ensure that users have sole ownership of their funds.
As an added layer of security and privacy, the blockchain allows users to encrypt their data, making it impossible for any unauthorized third party to view it. With the increasing adoption of blockchain technology, more companies are looking for ways to utilize it for their own business needs.
From cryptocurrency exchanges to secure document management systems, blockchain technology has many potential uses and businesses are beginning to explore them.