Blockchain is a shared, transparent and immutable ledger for recording transactions, tracking assets and building trust. It is a distributed ledger technology, which securely records information across a peer-to-peer network. Although it was created for financial service, blockchain's potential lies far beyond cryptocurrency. These ledgers can record data from Health sector, Land Registry, eSports, Enterprise Records, logistics Manifests, identities - almost anything that holds value.
Blockchain technology is actually a combination of 4 components:
- Peer-to-peer networks
- Consensus mechanism; Crypto economics and Game theory
- Blockchain data structure
Key benefits of Blockchain
Blockchain Technology stores information in blocks which are chronologically synchronised. And these blocks cannot be controlled by an individual making blockchain highly secured.
Decentralised Ledger operates on peer to peer basis. DLT allows recording the transaction of assets and their details in multiple places at the same time without any central authority. Unlike traditional databases, distributed ledgers have no central data store or administration functionality.
Once a block is sealed cryptographically or added to main chain, it is impossible to delete or edit, ensuring the immutability of the digital ledger.
It is possible for a user to verify and track their transactions, with the entire record of the transactions available in the blockchain.