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Blockchain explained to a layman


You may have heard the word ‘blockchain’ but what does 'blockchain' really mean?


This word was born with the introduction of Bitcoin over more than a decade ago. Then, it was the preferred technology for carrying out peer-to-peer dealings in this electronic cash in a decentralized and secure manner.

Today, this is an innovative technology being considered in various fields.

Simply put, blockchain is a chain of blocks. The block, here, means digital information of transactions made by any person. Chain, here, means a public database.

How it works and why should we care?

When you purchase something, the blocks store information; the date, time, amount and the parties involved in the transaction. Here, your actual name is not recorded, instead, a unique ‘digital signature’, like a username, is used.

Each block stores information, that is different from other blocks, distinguished by a unique code called a ‘hash’.

The details of this transaction are, then verified automatically by a network of computers. After verification it gets the green light and its unique identifying code, a hash of the most recent block.  

This way, a new block is added to the end of this blockchain. Now, you can access and view this transaction, but it is rather impossible for you to go back and change the contents. Your data remains tamper-proof and secure.


Why is it vital to future technologies?


This technology is very beneficial and can be applied to the technology being used in any other industry from finance to medicine or any other sector.

It is the future way to control our money without middlemen, with greater transparency, increased efficiency, enhanced security and traceability.

Due to its decentralized nature, future technologies can be integrated with this innovative technology to enhance business processes in a profitable manner.  


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