What is Blockchain?
Definition and meaning of Blockchain:
Blockchain is a distributed ledger that operates as an online database, enabling secure online transactions between parties.
Each computer in the network stores a copy of the database. That means all copies are updated automatically whenever a new transaction is added.
No one can tamper with the data, as they would need to hack into every computer in the network simultaneously. So, once a transaction is recorded, it cannot be modified. And due to the encryption feature, Blockchain is always secure.
What can blockchain be used for?
Blockchain was first developed as the underlying technology of cryptocurrencies like Bitcoin (it also has other applications). But Blockchain is not just for money: it can be used for many purposes, including tracking assets, managing records, and identity verification.
There are two main ways to use blockchain technology:
- Private blockchains – used by businesses to track assets or manage records.
- Public blockchains – shared by the public and used for various purposes, like tracking food supply chains or recording land ownership rights.