A blockchain is a decentralized and distributed digital ledger that is used to record transactions across many computers so that the record cannot be altered retroactively without the alteration of all subsequent blocks and the collusion of the network.
Blockchain's durability and robustness
Blockchain technology is like the internet in that it has a built-in robustness. 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.
Defining digital trust
In the case of blockchain technology, private key cryptography provides a powerful ownership tool that fulfills authentication requirements. Possession of a private key is ownership. It also spares a person from having to share more personal information than they would need to for an exchange, leaving them exposed to hackers.
Blockchain technology is often described as the backbone for a transaction layer for the Internet, the foundation of the Internet of Value.
Everyone from governments to IT firms to banks is seeking to build this transaction layer.
Blockchain is transparent
Blockchain technology provides a high level of privacy by ensuring that transaction details are shared only amongst the participants involved in those transactions.
Blockchain allows peer-to-peer and business-to-business transactions to be completed without the need for a third party, which is often a bank.