What is blockchain?

Decentralized

A decentralized blockchain means information is stored across a distributed network of computers rather than in a single central location. This allows transactions and data to be securely recorded and verified. The blockchain network functions as a chain of transaction data. When a block fills up or a time period passes, it’s sealed with an encryption code to validate the contents.

Then each new block is added to that chain of records, with all data encrypted. Every block also contains the hash of the previous block, allowing the network to correctly place it in the chain. This encryption ensures that data cannot be altered, because any change would break the chain’s integrity.

Secure

A block in the blockchain contains data from multiple confirmed transactions. Once a block becomes full or the set time has passed, it is closed with a hash (an encryption of all the data in that block) that is unique. The block also includes the hash of the previous block, ensuring the chain remains intact. Once a block is accepted by the network (which requires agreement from nodes), its data is spread across nodes to prevent fraud. If any discrepancy is found at any point, the transaction cannot be completed.

Efficient Transactions

Blockchain technology allows direct transactions without intermediaries such as banks. This can lead to faster and cheaper transactions, especially for cross-border payments, which normally involve many middlemen and checks. Depending on the blockchain type, transactions can be processed within minutes. Traditional banking delays become a thing of the past.