What is Blockchain Technology?

A Blockchain is a data structure that makes it possible to create a digital ledger of all bitcoins transactions and share it among a distributed network of computers. The Blockchain is seen as the main technological innovation of Bitcoin.

“Every informed person needs to know about Bitcoin because it might be one of the world’s most important developments.” Leon Luow

So first… let’s see what a bitcoin is.

It is a currency just like $, €, £. However, bitcoin is a decentralized, digital money created, held and spent electronically around the world.

Distributed database technology

A Blockchain is a public ledger of all Bitcoin transactions that have been executed.
It is constantly growing and the blocks are added to it in a chronological order. Each computer connected to the Bitcoin network automatically gets a copy of the Blockchain. The latter has complete information about the addresses and their balances right from the genesis block to the most recently completed block.

What about an analogy with Conventional Banking?

To use conventional banking as an analogy, the Blockchain is like a full history of banking transactions. Bitcoin transactions are entered chronologically in a Blockchain just the way bank transactions are. Blocks, meanwhile, are like individual bank statements.

How does it work?

blockchain

The Blockchain network automatically checks in for transactions with itself every ten minutes. Each group of these transactions is referred to as a “block”. Each block of new transactions is shared with all nodes in the network. Altering any unit of information on the Blockchain would mean using a huge amount of computing power to override the entire network.

All in all…

Clearly, the Blockchain technology is revolutionalizing the finance industry. It is the first time we can exchange value without intermediaries. Therefore, Blockchain has all the potential to solve some of your business complex problems now and in the near future.

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