Infographics: What is Blockchain?August 14, 2018
From the many complex definitions, one can derive a simple explanation of the term.
To put purely, Blockchain is a technology that records, manages and confirms transactions, where all the participants connected to the transactions hold the entire record of it, through peer-to-peer verification of transactions, as opposed to a centralised platform, where information needed to be passed over to any if required. Here, there is no central recording, but each participant has the info. Bitcoin operates this system, minus any central body.
Now imagine, all the complexities involved in global transactions, communication across channels and intermediaries, contracts and agreements and analysis of the same, cross-referencing and transfers if any, confirming authenticity and identity and conducting all this along with managing the security. All these activities and checkpoints would keep loads of people, like accountants, lawyers and admin staff, busy for innumerable hours.
With the introduction of Blockchain, the maze of such communication and staff would be non-existent, at least in theory, as all the documentation mentioned above would be automatically recorded and verified and accessed by all participants over the same secured platform. The bureaucracy will be eliminated. Everything will be streamlined and united on one big database.
The blockchain is a complex set of computers, which authenticates, that a transaction has been taken place, before recording it on a ‘chain’ of computer codes. The beauty is that the details of the transactions are recorded on a ledger that can be viewed by anyone who is on the network.