Understanding the term
A blockchain is composed of a series of blocks where the data in each block pertains to transactions that occurred during a particular period of time. A unique identifier known as a hash distinguishes each block from the others.
Additionally, a block contains the hash of the latest block added to the blockchain. It is necessary to verify every transaction before adding it to the ledger. The consensus mechanism (proof-of-work or proof-of-stake) is incorporated after the successful completion of the transaction to ensure its legitimacy.
The most notable uses of blockchain include the exchange of cryptocurrencies, data sharing, trading assets, and recording the ownership of digital assets. Depending on the type of blockchain (public, private, or hybrid), the benefits vary from traditional databases. Some ?benefits include increased transparency and security, automated operations, reduced transaction cost and settlements, open-source technology, and distributed architecture.
Majority of cryptocurrency networks utilize blockchain technology to maintain a decentralized, distributed, publicly accessible ledger of previously confirmed transactions. Developed to back Bitcoin, the most popular cryptocurrency, blockchain is now being integrated into business, across industries like energy, healthcare, retail, gaming, and finance.