What Is Blockchain?
Blockchain is digital information storage. It’s a distributed database shared among the nodes of a computer network. However, the main difference between the database itself and the blockchain is in the way information is stored.
As the name itself suggests, the blockchain collects information as groups of blocks with a certain storage capacity. Once the block reaches its capacity, it’s linked to previous blocks, creating a blockchain. Each block is given a timestamp when added to a chain and creates a larger group of information together with other blocks. Using blockchain technology, you can transfer large amounts of information, each specifically dated and enumerated.
What Makes Blockchain Special?
As explained, a blockchain is made of blocks with information. Each of these blocks is encrypted, and information is safe from hacker attacks. Besides, there are no real names related to a blockchain, which adds to its security. On the other hand, each piece of information contained in the chain is shared with those who have access to the blockchain.
Blockchain revolutionized the way of storing and transferring information and enabled non-centralized financial transactions.
On the bad side, transactions are virtually anonymous, blocks cannot be reversed or changed, and there’s a notable lack of regulations.
If used in the right way, blockchain technology has way more advantages than disadvantages. However, it made financial fraud easier and created a need for crypto investigation and other services.