If you’re familiar with banking and finance, crypto, or finance, you must have made use of blockchain several times.
Blockchain as the name suggests is a chain of many blocks containing several data. The blocks are the digital information or (data) and the chains are the (ledgers). Blockchain technology is the system on which Bitcoin and many other cryptocurrencies run. Essentially, the blockchain does some basic things.
Firstly it serves as a record. Records of many transactions are saved and stored in public and private ledgers which are kept on the blockchain network. These ledgers make the transactions more transparent and traceable. Hence, if for instance there is a need to trace any movement of Bitcoin, recourse can be made to these ledgers.
Secondly, blockchains serve as a security system against hacking and other scam activities. The system of connection which ensures that a transaction is verified by all the users on a block makes it practically impossible for the blockchain system to be hacked. This is because for a hacker to do such they would need such computing power that is virtually impossible to get.
Blockchain technology has led to several innovations in the finance sector even in the supply chain sector. This technology ensures transparency, credibility, and trust in the transactions that are carried on the blockchain. The ledgers are secure and immutable, they can be accessed by everyone on the blockchain.
As time unfolds the blockchain technology promises to revolutionize how we do business online and carry out transactions, it is certainly a welcomed innovation.