A blockchain is a type of database that stores data in a digital manner. It is decentralized, which means the database is stored in multiple locations. It acts as a secure public ledger, critical for keeping an open record of cryptocurrency transactions like Bitcoin.
Have you ever thought about how other cryptocurrencies and Bitcoin actually work? A blockchain acts as a decentralized technology that allows for the public ledger of transactions to be distributed across a network.
To make a payment using a blockchain, you need to have an account, but you don’t have to trust the Blockchain as your information is not visible to others.
HOW DOES A BLOCKCHAIN WORK
A blockchain is a digital ledger or list of digital records that are organized in “blocks.” They hold transactional records. Which can be linked automatically using cryptography.
This allows blockchains to have an immutable nature. Which means they cannot be altered. Blockchain is considered disruptive technology because it can provide many other financial uses.
The concept of a blockchain was first presented in 1991 as a research project, and it wasn’t until 2009 that it became popular with the launch of Bitcoin.
Since then, the emergence of numerous cryptocurrencies and decentralized finance (DeFi) apps. As well as non-fungible tokens (NFTs) and smart contracts, have skyrocketed the use of blockchains.