What is this Blockchain???
Blockchain, sometimes referred to as distributed ledger technology, makes the history of any digital asset immutable and transparent through the use of a decentralized network and cryptographic hash.
To make a simple analogy of how blockchain technology works, it can be compared to how the Google Docs document works. When you create a Google Doc and share it with a group of people, the document is simply distributed rather than copied or transferred. This creates a decentralized distribution chain that gives everyone access to the underlying document at the same time. No one is locked out waiting for changes from another party, while all changes made to the document are recorded in real time and the changes are made completely transparent. However, unlike Google Docs, the fact that the original content and data in the blockchain cannot be changed after writing shows that the security level is high. Of course, the blockchain is more complex than a Google Doc.
Why Is Blockchain Important?
Blockchain is a particularly promising and revolutionary technology as it helps reduce security risks, eliminate fraud and bring transparency on a scalable basis.
Popularized by cryptocurrency and its association with NFTs, blockchain technology has since become a management solution for all kinds of global industries. Today, you can find blockchain technology that provides transparency for the food supply chain, secures health data, innovates in games and generally changes the way we handle data and property at scale.
What Does It Benefit Us?
In short, it would be correct to call the blockchain a database in which encrypted blocks of digital asset data are stored and chained together, forming a single chronological source of truth for data.
· The digital assets here are not distributed, copied or transferred.
· Digital assets are decentralized allowing real-time accessibility, transparency and governance across multiple parties.
· This database is transparent, all changes are documented, providing integrity and trust.
Databases are public and built with inherent security measures, making it a premium technology for virtually any industry.
It is precisely because of all these possibilities and advantages that blockchain technology has become popular and has become a concept we hear frequently.