What is BlockChain Technology?
Blockchain technology is a sort of distributed ledger that offers a shared, decentralized transactional database, or so-called “digital ledger of transactions,” that is accessible to all users on the blockchain network. Consider it as a shared database where users must confirm, verify, and record data, each of which has a logical relationship to the blocks before it. It resembles Google Docs on steroids in many ways. Transactions are stored chronologically on the blockchain, and each block transforms into an immutable, locked historical record that is connected to earlier and later blocks or transactions.
BlockChain & Crypto
Blockchain technology has become the main pillar of a wide range of businesses that are information driven, an example of this is the cryptocurrency which is a matter of loud controversy nowadays. At Core, blockchain technology is known to be a highly secured virtual form of an accounting book that facilitates the process of documentation of trading transactions and the monitoring of tangible and intangible assets. In other words, on a blockchain network anything which carries an economic value can be traded and tracked in a risk-free environment.
Significance of Blockchain
The significance of blockchain technology manifests itself in the high speed and accurate process of exchanging business information. Moreover, the security dimension offered on a blockchain network is of great benefit for supergiant businesses since blockchain network gives access for a tight circle of permissioned members to the security identity of the trade trapped in a block while sharing transparently all other details regarding the details of the trade like orders, payments, accounts, production and much more.
The key elements composing the blockchain network are the distributed ledger (accounting book) of transactions, unalterable records in which no one can edit the transaction and in case an error occurs a new transaction block is required to be done to reverse the error, also another key element is the smart contracts which are a kind of rules that governs the execution of transfers.
Regarding the working principle of blockchain technology, it all revolves around recording the transaction data in a virtual coded block showing the movement of tangible and intangible assets (who, what, when, where, how much and even the condition such as the temperature of a food shipment.). These blocks are what form the chain of blocks that are connected in a complementary manner with each other in which any unmatching alteration in a single block can malfunction all the chain that ensures the transfer of asset from one place to another. furthermore, all transactions are blocked together in an irreversible chain where every added block verifies that one before which removes any possibility of alteration by a malicious actor.
Prepared by: Capstone-X team
July 30, 2022