Blockchain is a technology based on the principle of a continuously growing list of data records, or blocks, which are linked and secured using cryptography. Each block contains a cryptographic hash of the previous block, including a timestamp and transaction data.
Most people know the term “blockchain” because it is used as the basis for cryptocurrencies like Bitcoin or Ether. But the underlying concept allows blockchain technology to have a variety of use-cases, such as file notarization, digital voting, creating smart contracts, and more.
The key advantages of the technology includes:
- Security: Blockchain uses strong cryptography to create transactions that are impervious to fraud.
- Distributed architecture: Blockchain leger is not owned by anyone as it can be distributed across multiple organizations and becomes more secure as replicas are added.
- Impossible to backdate changes: Every transaction is written into the ledger once and cannot be changed thereafter.