What Is a Blockchain? Blockchain Simplified-1

Blockchain Technology is a term which is increasingly being heard today and why not-It is something which is slowly encroaching every sphere of the economy especially the financial sector. What is Blockchain? In layman’s lingo it is something akin to a database, a block or lump of information which is stored electronically in a chain and once created cannot be altered or deleted.

Blockchain-Backbone Of Cryptocurrency

Block chain is the backbone of cryptocurrency like Bitcoin (BTC) and Ethereum (ETH) and is employed to create a secure and decentralized record of transactions. It involves storing this information in a digital format. The beauty of Block chain is that it warrants a secure and security of a record of data and thus generates a feeling of trust without the need of a third party.

Blockchain-Stored Information Indestructible

However there is a basic difference between a traditional data storage process and Blockchain. It is how the data is structured.Here the data collated together in groups which is known as blocks. Every block has a finite storage capacity and once it is full it is closed and linked to previous filled block and the process continues. New information is stored in a new block which will be added to the chain when it is full.

In a Blockchain the data is structured as blocks which are then strung together just like beads in a necklace. The data when once created has an irreversible timeline attached to it and every block becomes a part of timeline. The data when it is implemented is decentralized in nature.

Important Takeaways

• Block chain is a string of blocks containing information and are linked via cryptography.
• Every piece of new information or data is filled in blocks and once filled are linked to previous block in a sequential order.
• Any information can be stored on a Blockchain, however the most common use is as a ledger for different transactions.
• All collated data is decentralized and immutable. In other words data once filled cannot be erased or deleted and is viewable to anyone.