The blockchain is a distributed ledger that stores information in a way that makes it rather impossible for the data to be altered, hacked, or corrupted. It’s a type of distributed ledger that replicates and disperses transactional data throughout the network of computers that are part of the blockchain.
The blockchain is a structure that saves records of transaction data, in form of blocks, which are linked to each other in form of a chain. Blockchain technology is a framework that stores the records of data. The owner’s digital signature is required for each and every record in this ledger. This signature both verifies the legitimacy of the transaction and protects it from being altered in any way. As a result, the information that is contained in the digital ledger is protected to a very high degree.
In more layman’s terms, the blockchain ledger is analogous to a Google spreadsheet that is shared among several computers in a network. Within this spreadsheet, the data are stored in accordance with actual transactions made. The fact that anyone can view the data without being able to alter it makes it highly authentic.
Keeping accurate records of both data and transactions is an essential component of the business. This information is typically managed in-house or provided through a third party which can increase the risk in data processing along with the costs incurred by the company. Blockchain technology, thankfully, eliminates the need for such a lengthy process and makes it possible to move transactions forward more quickly. This results in cost and time savings. The information is also fully authentic and corruption free which makes the process of information processing more effective.