A blockchain is a digital database (ledger) of transactions that is duplicated and distributed across the protocol of computer systems. Each block on the chain contains a number of transactions, and whenever a new transaction occurs on the blockchain, a record of that transaction is added to the ledger of each participant. Distributed Ledger Technology (DLT) is a decentralized database that is administered by various people.

Blockchain has come to stay. Bitcoin, for example, is built on blockchain technology the same way Google is built on top of the internet. Blockchain is what makes Bitcoin possible. However, there is more to blockchain than Bitcoin in particular and crypto in general. However, Bitcoin is proving that blockchain is becoming more important than thought.

To explain how blockchain works with continuing with the Bitcoin example, let’s assume four people are involved in a dinner date: James, McEdwin, Rufus, and Ted.

Each of these people has contributed 2 Bitcoin each to the dinner they organized for themselves.

Assuming three of them has 3 Bitcoin each in reserve, while the fourth person Ted has 5.

If James sends 2 Bitcoin to Ted, a record is created in the form of a block.

Now the transaction details between these two are permanently recorded in the above block.

This record also holds the number of Bitcoins each of the friends own.

After James’ transaction with Ted, Ted now has 7 Bitcoins, while James has one.

Following the above scenario, McEdwin and Rufus send 2 Bitcoins each to Ted. A new block is created for each of these transactions.

The above block holds the detail of the transaction and the number of Bitcoins each person has in reserve. These blocks are linked to each other as they take reference from one another. The above chain of blocks or records is called a “Ledger.”

The ledger is shared among all the friends, which is an attribute of public distributed records. This ledger which is well distributed among users forms the basis of blockchain technology.

What happens if James tries to send 2 Bitcoins again to Ted? The transaction will not go through because each of the friends involved has a copy of what had already transpired between them. It is already known that he has only 1 Bitcoin left. His friends will flag the transaction as invalid.

A hacker will not alter the information in the blockchain because each user has a copy of the “ledger” containing the record of transactions. That is the blockchain.

Again, the data in the blockchain or ledger is encrypted by complex algorithms.

Blockchain technology has made the above scenario possible.

Blockchain is a collection of records linked with each other strongly resistant to altera0tion and prote0cted using crypto0graphy. 

Uses of Blockchain:

Big businesses are using blockchain to record data. Organizations like Pfizer, Walmart, Siemens, Unilever, etc., use blockchain to keep data that are too complex for a spreadsheet to record.

Healthcare providers use blockchain to store patients’ medical records safely.

There is huge potential for blockchain to grow into records of property ownership.

Its usage is extending into the electoral process to help secure votes and take away the need for a recount.

Blockchain is predicted to disrupt activities around the world in the coming decades significantly.