The word ‘blockchain’ is commonly associated with related concepts such as cryptocurrency, mining, and Bitcoin. But not many understand the true meaning behind this technology or what it can mean for several different industries. To better understand blockchain and the things that it can do, you need to understand its basic concepts first.
In its essence, a blockchain refers to a system that accurately records data while making it near impossible to make changes or alterations to the information stored. This helps prevent people from making fraudulent transactions and claims while making peer-to-peer agreements more secure.
All information that is saved on a blockchain can also be accessed through duplicated copies across a large network of connected computer systems.
There are different types of blockchains commonly used today, such as public, private, hybrid, and consortium structures. However, only a system that delivers specified key functions can be called a true blockchain system. These elements should include immutability, privacy with traceability, transparency, and audibility while remaining public and low cost.