A blockchain is a distributed database that is encrypted and permanently records information. The information stored on the blockchain must be confirmed by several devices, known as “nodes”. Once the information is stored on the blockchain, it cannot be changed or removed, even if a rogue node tries to change it. This process is known as consensus.
One of the biggest benefits of blockchain is security. Because the blocks are stored chronologically, the information cannot be changed by anyone without changing the previous or next block. And if the hacker did change a block, he’d also need to change the hash of every block that came after. That would be a massive carbon burden.
The process of creating a blockchain begins with a proposed online transaction. This transaction can be anything from transferring digital currency to triggering a smart contract. The proposed transaction is then sent to each peer network node, which holds a copy of the digital ledger and transaction history. Each node then proposes a new block of transactions, which is then validated by all other nodes in the network.
There are many different industries that use blockchain. It can provide security, transparency, and decentralization. The technology can be used to exchange personal health information, digital assets, and real estate deeds. Blockchains are also being used by manufacturing businesses to track materials through supply chains.