Blockchain has captured the imagination of many technologists and businesspeople alike. Its potential could be far-reaching, yet it is also unclear how exactly it will be implemented. Since the concept of blockchains is relatively new, many people still have questions. Truth be told, I had the same questions myself when I initially started to explore this technology. Today, I’m able to help others answer some of those questions while speaking on technology panels or consulting with clients. This Q&A was borne out of questions I often get.

What Exactly Is Blockchain?

At its core, blockchain is a framework for creating business-to-business workflows. From a technical perspective, it’s essentially a decentralized database. This database automatically synchronizes data among various systems in which each system receives a copy of the data. The advantage of this distributed model is that if one node fails, the remainder of the blockchain ecosystem still works. Blockchain can also provide transparency. It stores an immutable log of transactions that cannot be changed after the fact. The system is powered by cryptography and includes consensus mechanisms that minimize fraud. …