What exactly is Blockchain? It’s a revolutionary system for recording information that’s virtually impossible to alter, hack, or manipulate. Essentially, it functions as a digital ledger of transactions, duplicated and distributed across a network of computer systems called nodes. Blockchain permanently records all transactions, eliminating intermediaries and establishing trust through its algorithm.
Introduced in 2009 by an individual or group under the pseudonym Satoshi Nakamoto, Blockchain gained popularity with Bitcoin, the first widely adopted blockchain. Since then, numerous other blockchains have emerged. Some of the top ones currently include Avalanche, Cardano, Ethereum, Ripple, and Solana, among others.
In traditional ledger systems, records of debits and credits were arranged chronologically in a book. Similarly, in blockchain, transactions are recorded in a digital ledger arranged in reverse chronological order, with the latest transactions appearing first. However, unlike traditional ledgers, blockchain operates in a decentralized manner, with each node on the network maintaining a copy of the ledger.
Each transaction is represented by a block, linked or “chained” to the next block using a hash. This hashing process involves converting the data of a block into a unique string of characters or letters, serving as the block’s identifier. Any change to the original data of a block would alter its hash value, making it evident if tampering has occurred.
Blockchain is considered virtually unhackable due to several factors. Firstly, any change to the data of a block results in a change to its hash value, making tampering immediately detectable. Secondly, the distributed nature of blockchain means that thousands of nodes maintain copies of the ledger, making it extremely challenging to alter all copies simultaneously. Additionally, any changes to the blockchain require consensus among the majority of nodes, further enhancing security.
Because of its speed, transparency, and immutable nature, blockchain is widely used in various industries, including cryptocurrency, finance, and supply chain management. For instance, blockchain streamlines international money transfers by eliminating intermediaries and relying solely on technology for transaction processing, reducing the risk of fraud or manipulation.
