Blockchain is an information recording system that makes it difficult or impossible to modify, hack, or defraud the system. A blockchain is essentially a digital transaction book that is duplicated and distributed across the entire network of computer systems on the blockchain. Each block in the chain contains a number of transactions, and every time a new transaction occurs on the blockchain, a record of that transaction is added to each participant’s ledger. The decentralized database managed by several participants is called Distributed Ledger Technology (DLT). Blockchain is a type of DLT that records transactions with an immutable cryptographic signature called a hash.
Blockchain Distributed Ledger Technology (DLT) PropertiesExplanation Euromoney Learning This means that if a block in a chain was to be changed, it would be immediately apparent that it was manipulated. You must change every block in the chain in all distributed versions of the chain.
Blockchains like Bitcoin and Ethereum grow steadily and continuously as blocks are added to the chain, which greatly increases the security of the ledger.
Why is there so much hype about blockchain technology?
There have been many attempts to create digital money in the past, but they always have failed. The overall topic is trust. If someone creates a new currency called Dollar X, how can we be confident that a million dollars X will not be delivered or their dollar Xstolen. Bitcoin was designed to solve this problem with a specific type of database called a blockchain. Most regular databases, like a SQL database, have someone who can change the records (e.g. give themselves a million X dollars). it’s different because nobody is in charge; It is run by the people who use it. Also, Bitcoins can not be counterfeited, hacked, or spent twice, so the people who own this money can be confident that it has some value.