Blockchain is a method of recording data - a digital ledger of transactions, agreements, contracts - anything that needs to be independently recorded and verified as having happened. So, why is relevant to us?
The big attraction is that this ledger isn't stored in one place, it's distributed across several, hundreds or even thousands of computers around the world and data is tracked in real time. As a result many sectors, from FS firms to governments, can benefit from it. Banks are thrilled about it too - or are they?!
Blockchain is seen as the main technological innovation of Bitcoin, since it stands as proof of all the transactions on the network. They are not to be mistaken as similar as Bitcoin is a digital asset and a payment system whereas blockchain is the platform which makes it happen.
A block is the ‘current’ part of a blockchain which records some or all of the recent transactions, and once completed goes into the blockchain as permanent database. They are linked to each other (like a chain) in proper linear, chronological order with every block containing a hash of the previous block.
Difficult to hack – Blockchain has been around for over two decades and promises to change the digital world whilst making it more secure. Whether is it sensitive personal data or series of payments, its one way system makes it more secure and difficult to break.
Truly global – we all aim to be global citizens but there are many challenges on the way. Blockchain makes it possible to bring people together in a more secure way. Its ability to pull information/data from all over the world, where errors are less likely, in real time makes highly attractive.
Get rid of the middle man – we no longer need the banks! I could go on and on elaborating on this point but I will just let you think about the prospects of that sentence for the time being.