You may have asked the question, What is blockchain? How is blockchain relevant to my life? This article will answer these questions and offer you an overview of blockchain technology and its application to our lives.
Whether you are aware of it or not, you conduct business every day, even if you don’t work. At some point, everyone gets online and initiates some kind of transaction. Whether it is purchasing something from Overstock.com or buying something from the Google Store, you are engaging in the business of blockchain technology.
Even though the term “blockchain” is relatively new, the technology has been around for about a decade. Satoshi Nakamoto detailed out a digitized ledger in 2008 that became the basis for the spreadsheets that tracked and managed cryptocurrencies and other online transactions. He used the technology known as cryptography, which is how text is coded on the internet.
Cryptography is used in blockchain technology to create distributed trust networks. This, in turn, allows any contributor to the system to operate the transactions securely without having to obtain authorization from someone else in the digital ledger. These transactions are then verified, approved, and then recorded in an encrypted block. This block is saved intermittently and then connected to the previous block, which in turn creates a chain.
Blockchain is the spreadsheet taken online and distributed. It can be used for supply chain, tracking items, eliminating counterfeit luxury goods, and even assist in maintaining a free and fair democratic election. What is blockchain? It is the technology that will power the next decade or two and its footprint will change our society in ways we do not yet comprehend.