Blockchain Fundamentals — Can you explain what is Blockchain Technology?
What is Blockchain? This is a common question that nowadays everyone is asking, sometimes without obtaining the desired answer.
So let’s try to do that keeping it simple. Many people define Blockchain as the internet of value. Others, the internet of transactions.
First of all Blockchain it’s a ledger. It’s a file.
But it is a special one. It is a decentralized ledger that stores assets and transactions on a peer-to-peer network.
It is a public registry (meaning that everyone can access and be part of it).
All data related to transactions are secured through complex cryptography (Hash).
Each transaction, through agreed validity rules, is verified, approved and recorded on all nodes of the network in a chronological way.
Consequently:
- Every transaction that happen, happens after the previous one;
- All the network participants have a copy of the same “information”, which therefore becomes immutable.
So, Blockchain is a new system that decentralizes the management of data, allowing to guarantee the real immutability of them.
It is able to assure and certify the complete history of all transactions, increasing the level of trust in the network and therefore removing the need of third parties.
So, summarizing:
Blockchain is a constantly growing ledger that keeps transactions that have taken place in a Secure, Chronological and Immutable way.
In the next articles we will talk about how this disruptive technology can be applied to existing business models and mostly helping to create new ones.
Did you miss the latest video from the #NokuAcademy? Check it out: our Business Development Manager, Lorenzo, gives a clear explanation of the blockchain technology
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