What is Blockchain | Paroexchange

“A blockchain is a public ledger of information collected through a network that sits on top of the internet”

Blockchain technology is not a company, nor is it an app, but rather an entirely new way of documenting data on internet. Blockchain technology is commonly associated with Bitcoin and other Crypto currencies.

While block chain isn’t simple when you dig into the nitty-gritty, the basic idea isn’t too hard to follow. It’s effectively a database that’s validated by a wider community, rather than a central authority. It’s a collection of records that a crowd oversees and maintains, rather than relying on a single entity, like a bank or government, which most likely hosts data on a particular server. A physical database kept on paper could never be managed by tens of thousands of peers, but that’s where computers, and the internet, come in.

The entire blockchain is retained on this large network of computers, meaning that no one person has control over its history. That’s an important component, because it certifies everything that has happened in the chain prior, and it means that no one person can go back and change things. It makes the blockchain a public ledger that cannot be easily tampered with, giving it a built-in layer of protection that isn’t possible with a standard, centralized database of information.

How Does Blockchain Work?

How does the blockchain work? Let’s recall a few key features before we get into the details:

1. Blockchain keeps a record of all data exchanges — this record is referred to as a “ledger” in the crypto currency world, and each data exchange is a “transaction“. Every verified transaction is added to the ledger as a “block”

2. It utilizes a distributed system to verify each transaction — a peer-to-peer network of nodes

3. Once signed and verified, the new transaction is added to the blockchain and cannot be altered