Blockchain is a system of recording information that makes it more difficult to change, alter, hack, or cheat the system. In simple terms, blockchain acts as a digital ledger of transactions that is duplicated and distributed across the entirety of the network on the computer systems on the blockchain.

Imagine each block in a chain contains a set amount of transactions, and each new transaction that occurs on the blockchain is added to every participant’s ledger. Consider this transaction another addition to the block chain, another block.

 

This type of database is managed by multiple participants is known as Distributed Ledger Technology (DLT). Blockchain are recorded with an immutable cryptographic signature called a hash.

Distributed Ledger Technology (DLT)

Programmable

Smart contracts are the method used to program a blockchain.

Secure

Each record is encrypted.

Anonymous

Each participant’s identity is anonymous by default. It can be set to be pseudonymous, linking something a false or temporary name.

Unanimous

All participants on the network agree to the validity of each record across the blockchain.

Time-stamped

A transaction timestamp  is recorded on the transaction ledger or block.

Immutable

Any validated record is irreversible and cannot be changed. This added to the security of the blockchain, since it is not possible to go back and change previous transactions.

Distributed

Each network participant has a copy of the ledger for complete transparency and security.

 

Secure and Growing

A system like this deters hackers and cheaters because if one block was changed (ledger of transactions or transaction); it would be obvious.

The only way to change the system would be to change every block on the blockchain, across all distributed versions of it.

The more blocks added to the ledger, the more secure it becomes since you’ll have to alter more blocks to even come close to corrupting a blockchain.

 

Why is blockchain different?

Blockchain is unique because of the transparency and security, creating a system that is essentially unbreachable and garners trust. With a standard database there is normally someone in charge that can manage and change entries or records.

With blockchain there is no single entity in charge, it’s a self managing system, run by the people who use it. The trust that is instilled in this system is what gives it value and makes it so different.