Blockchain is a decentralized system that stores a public record of all transactions. It is completely digital, with thousands of copies held by users around the world. These copies are constantly compared to ensure they are consistent and accurate. It can store any kind of digital property, such as digital money. As it is distributed over a network of computers, it is a safe and secure way to store important information.
Traditionally, money transfers are a complicated process requiring a third party and expensive fees. Blockchain can help solve this problem and make international transfers much faster, cheaper and easier. This is possible because blockchain is a decentralized network, with no central point of failure. As long as each computer is working properly, transactions can be verified.
Blockchain technology was first described in 1991 as a means to time-stamp digital documents, which would prevent tampering with records. This technology was used to create the digital currency, “Bitcoins.” The technology uses cryptography to keep the network secure and authentic. Transactions are broadcast in the form of a digital message with a unique digital signature. This signature proves the authenticity of the transaction.
Large public blockchains are distributed among hundreds of thousands of computers, making them highly secure and resilient. An example of how this technology works is when a consumer wants to purchase handmade shoes online. The artisan rents a server to host the website. To accept credit card payments, he uses a simple plugin on the server. However, the server has been compromised without his knowledge.