What Is Blockchain Technology?

The technological explosion is now accelerating with blockchain technology disrupting many sectors including banking (currencies like bitcoin), legal (smart contracts like Ethereum), logistics (shipment tracking on private blockchains) and voting (using new governance models).

Blockchain is a new way for communities to share important information securely as it creates networks with more trust, managing ledgers that are more trust worthy, lowering fraud risks. Blockchain technology offers a database that is validated by a wider community. It is a collection of records that a crowd of servers (“nodes”) oversees and maintains. Each “block” represents a number of transactional records, and the “chain” component links them all together with a hash function. As records are created, they are confirmed by a distributed network of computers and meshed together with previous entries in the chain, thereby creating a chain of blocks, i.e., a blockchain.

For an excellent introduction to blockchain technology, check out this video, entitled: “What is Blockchain technology?”

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Bitcoin is the most famous blockchain application and the first.  Now, there are hundreds of cryptocurrencies that you can trade or exchange over blockchain technology. Many of these are used for international money transfers. Currently, major computer companies are deploying blockchain-as-a-service.  Big corporations are using blockchains to improve efficiency and security while entrepreneurs are implementing blockchains to disrupt entire industries. Blockchain adoption is so strong and widespread that revolutionary innovations from it are inevitable.

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