What is blockchain and how does it work?
According to Euromoney, blockchain is a system of recording information in a way that makes it difficult or impossible to alter, hack, or cheat the system. It is basically a digital public ledger of transactions that is duplicated and shared across the whole network of computer systems on the blockchain. Each digital record or transaction in the thread is known as a block, and it permits either an open or controlled set of users to participate in the electronic ledger. Each block in the chain is linked to a specific participant and incorporates a number of transactions, and every time a new transaction takes place on the blockchain, a record of that transaction is added to every participant’s ledger. The decentralised database handled by various participants is called Distributed Ledger Technology (DLT). Blockchain is similar to a relational database that can be openly distributed among different users and that brings about an unchangeable record of their transactions, each one time-stamped and connected to the previous one. Blockchain can only be updated by consensus between participants in the system, and when new data is entered, it can never be deleted. The blockchain incorporates a true and verifiable record of each and every transaction ever made in the system. Blockchain databases can be managed autonomously and the users are the administrator.