Blockchain is a kind of distributed database, which could save transaction logs in a tree structure and cannot be rolled back. In blockchain, all nodes are digitally marked over time.
Blockchain is the distributed ledger that cryptographically contains transaction/record data in the form of a tree node, where all nodes are connected to a chain and cannot be changed or rolled back without being detected. In fact, blockchain is the backbone of the digital currency bitcoin, this being the most famous application of this technology.
Based on cryptographic technology that began to be developed during World War II with computer father Alan Turing, the blockchain was conceived in 2008 by the same Satoshi Nakamoto that is behind the invention of bitcoin and was proposed as the distributed database that may contain financial records, doctors, employees, patients and so on.
Because it did not depend on third-party approval and all nodes have a digital signature to ensure their validity, blockchain reduces the likelihood of financial fraud and tracking financial transactions becomes easier.
How does blockchain work?
We can simply assume blockchain as a distributed database that supports a tree structure and where, whenever a transaction starts, a new node is created, which has a digital signature with a date and time record and validation from that record. This new node connects to the previous node and creates an unbreakable chain.
- A transaction starts after it is digitally signed
- Transaction information is sent to all related nodes that verify its integrity.
- After verification, the transaction is accepted as a node.
- The receiver receives the transaction.
Blockchain benefits in various industries
Many industries have seen a great opportunity in blockchaintechnology,which could solve many of their problems. Here are some examples:
- In the education sector, the blockchain database could be used to stop the falsification of educational records. Many universities have begun to give their students blockchain-basedcertificates.
- In the product-based industry, buyers and sellers do not rely on intermediaries to buy and sell their products.
- The banking sector, which relies entirely on the validity of transactions and is prone to online counterfeiting, could reduce its problem with blockchaintechnology.
Blockchain has really shaken the world and many are looking at its energy potential, which can change the way we do business and deal with money forever.