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What is Blockchain Technology?

Blockchain Technology

In 2008, a person, or group of persons going under the alias Satoshi Nakamoto launched Bitcoin, a peer-to-peer electronic cash system.

The technology behind Bitcoin, known as the “blockchain”, applies an innovative approach to using and updating a ledger; a distributed decentralized system which is not controlled by any unique party.

A distributed ledger is essentially an asset database that can be shared across a network of multiple sites, geographies or institutions. All participants within a network can have their own identical copy of the ledger. Any changes to the ledger are reflected in all copies in minutes [4].

For the first time, algorithms enable the collaborative creation of digital distributed ledgers with properties and capabilities that go far beyond traditional paper-based ledgers.

The Bitcoin Blockchain explained

“What if there is a technological advancement so powerful that it transforms the very basic pillars of our society?”

Blockchain is a peer-to-peer distributed ledger technology for a new generation of transactional applications that establishes trust, accountability and transparency while streamlining business processes.

A blockchain is a distributed database that takes a number of records and puts them in a block. Each block is then ‘chained’ to the next block, using a cryptographic signature. This allows block chains to be used like a ledger, which can be shared and corroborated by anyone with the appropriate permissions [4]. The Bitcoin Blockchain is public and permissionless. Note that there are however other distributed ledgers which may be private, permissionned or both.

Courtesy of www.bitcoinproperly.org