What is blockchain technology?
The blockchain is a digital account statement, also called distributed ledger, for any transactions between computers that accurately captures every change, storing it decentralized and transparent across multiple machines. The data is chained block by block, including the timestamp, hence the name “blockchain”.
These transactions recorded in the digital account statement are verified by members of the network. Because all users have access to the same data, they can only be changed if everyone agrees. Thus, the information cannot be manipulated. There are already about 500 systems, but they have the following common features:
- Elimination of all intermediaries. Central institutions (stock exchanges, banks, clearing houses) are replaced by a network of computers. The network checks the validity of transactions (stock exchange transactions, cash transfers) that are mapped in the account chains (blockchains).
- Anonymity and confidentiality are guaranteed in the network by encryption.
- High security, reliability and immutability of the documents are ensured by the concatenation of accounts and their distribution to all nodes in the network.