The blockchain is known for being a platform/technology on which Bitcoin and other cryptocurrencies trade; however, there is more to the blockchain.  It can track all sorts of data in a structured format.  The blockchain technology is a distributed ledger which keeps track of transactional data in a secure, verifiable and permanent manner.

The blockchain provides for a digital, decentralized, distributed ledger.  While ledgers are everywhere, ledgers do more than just record accounting transactions. Smart contracts are traditional contracts written in code. For instance, it automatically charges a payment when certain agreed upon conditions are met as defined in the code. Smart contracts executed on the blockchain is another major plus.

The decentralized ledger in the blockchain maintains participants’ identities anonymously.  The associated details like their respective cryptocurrency balances, and a record of all the genuine transactions executed between network participants is documented in the ledger.

The decentralized ledger functions by the elements of security and a proprietary operating system that is designed specifically to protect a user’s cryptocurrency assets.  These wallets make use of a 24-word backup recovery phrase, which can be used to access a user’s cryptocurrency if the device containing the private key is stolen.

Where is Blockchain Ledger stored?  The ledger is stored in multiple copies on a network of computers, known as “nodes.” Every time someone submits a transaction to the ledger, the nodes will verify to ensure that the transaction is valid.  The nodes do the job of ensuring “whoever spent a bitcoin had a bitcoin to spend” using programmed mathematical calculations.  This is done by PoW (Proof of Work)

Blockchain is an extraordinary innovation which has a long way to evolve. Several technology firms are recommending integration of blockchain technology in to business systems.  The benefits of integrating blockchain technology is already very apparent.

Blockchain provides for a peer-to-peer system of exchange which is self-governing and based on the concepts of shared ownership and equality among participants. The technology is expected to boost the global economy due to its capability of tracking, tracing and trust. It is expected that the public administration, education and healthcare sectors to be the ones to be most benefited. Its effects are game changing.

Blockchain can help an organization to become more efficient, because data is crucial to every business and blockchain with its distributed ledger technology does a great job of storing data immutably on its ledger in a secure manner. Further, decentralized blockchain-based systems are expected to replace banking with faster transactions.