Blockchain Definition and Meaning Made Easy

Blockchain Explained

The Blockchain is an automated way to structure data about a transaction. More specifically, the Blockchain is a digital ledger in which all transactions made over a particular element or object (such as a bitcoin) are recorded chronologically, publicly and in multiple distributed computers. The ledger contains the history of all transactions, and it is updated, encrypted and stored on near real-time on multiple computers around the world belonging to different people/organizations.

The name Blockchain refers to this very fact: all transactions are stored one after the other. The Blockchain Technology is a mix of mathematics, computer science, and cryptography and it takes account some facts from behavioral economics. All of it together with a very innovative algorithm makes Blockchain a potent tool.

The ledger contains the network consensus that the transaction has taken place and that it is the next immediate follower of the previous transaction. The ledger contains every transaction that has ever occurred.

The robustness and power of Blockchain come from the fact that it is immutable. Each time a transaction takes place, that transaction is verified, cleared, time-stamped and stored as the next block in multiple ledgers. The encryption method, the fact that the ledgers run on multiple computers around the world and as there is no central database, make it impossible to hack or shut down.

A person or persons nicknamed Satoshi Nakamoto created Blockchain as the algorithm behind a digital currency (cryptocurrency) called Bitcoin (refer to “A Peer-to-Peer Electronic Cash System”)

Though it has been well known as the concept behind digital currencies, it may be applied to multiple objects or elements that are transacted. As a matter of fact, nearly all the top banks and many multinationals are experimenting with it. In 2017, Daimler, the owner of Mercedes Benz, issued corporate bonds based on this technology, and Lisa Walker recently published a paper on using Blockchain as a way to fight carbon emissions (refer to Blockchain Technology as a Resource for Climate Change Control)

You can learn more about Blockchain in the Blockchain Technology Buzzword article, and through the Blockchain and Cryptocurrency relevant Quotes.


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