The blockchain is the basis for Bitcoin’s underlying technology, developed by a person or group of people known by the pseudonym, Satoshi Nakamoto. By allowing digital information to be distributed but not copied, blockchain technology created the backbone of a new type of internet based transaction. Originally devised for the digital currency, Bitcoin, uses are being found everyday to supplant traditional transaction and data storage industries. Bitcoin, the total value of the currency is close to US$270 billion (as at December 2017).
“The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.”
Information held on a blockchain exists as a shared and continously reconciled database. The blockchain database isn’t stored in any single location, but in multiple synchronous computers, meaning the records it keeps are both public and verifiable. No centralized version of this information exists for a hacker to corrupt.
By storing blocks of information that are identical across its network, the blockchain cannot:
- Be controlled by any single entity.
- Has no single point of failure.