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Blockchain can be described as “a “write only” digital platform that records and verifies transactions”. Simply put, blockchain is the next step within database development. It can also be called Distributed Ledger Technology (DLT). As a distributed ledger, it is designed and built with the goal of securely storing millions of data within its platform, leveraging a series of architecture tweaks for it.
A blockchain is then, nothing else than a database made up of rows, columns, and tables. What differentiates it from other databases, is its sophisticated encryption, that makes it safer, transparent, and more trustworthy. Blockchain technology uses cryptography and digital signatures to prove identity, authenticity, and enforce read/write access rights. All transactions within a block which is part of the blockchain are visible; so there is full transparency for every transaction. What is more, once an entry goes into a blockchain ledger, it cannot be (easily) altered or erased. There is no “central power” overseeing the ledger of transactions. Instead, blockchain technology enables a decentralised and distributed ledger where transactions are shared among a network of computers—in almost real time—rather than being stored on a central server with a central authority (like a bank) overseeing transactions.
A blockchain platform is formed out of infinite blocks. The system was inspired by the way bitcoin was first designed when invented in 2008. Similarly to bitcoin, every time a block is made, it will attach itself to the blockchain carrying along a “hash”, or fingerprint from the previous block. These have an important function as they use cryptography to authenticate the source of the transaction.
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