Okay, so you’ve probably heard of this word before, right? Well that’s because it’s a buzzword in field of technology. So here I’ll explain this word more practically rather than those classical physics look-alike theories!
Imagine a simple scenario of bank transaction, you withdraw some cash and the proof of this transaction is printed into your online account details and in your traditional passbook.
Now we are living in that world, where security breaches are not rare, so it’s not a surprise that in the worst case scenario, your bank’s database could be hacked and your passbook, it is pretty easy to modify the details. So the question here is, where is the security for payment systems (probably the most important system)?
Enter, blockchain to the rescue. So in simple words it is basically an immutable online ledger system, in which the records (of transactions, say) are publically distributed over a long chain like network. As the name suggests, blockchain, is like encrypted blocks of data, connected to each-other, forming a large chain. And the beauty of this network is that this chain is distributed over millions of networks, so falsifying of a particular data is clearly impossible. As a change in data of one block, will affect the whole system and it’s not practically possible. Hence it proves to be a robust system. But, this system is not just limited to transactions only, it’s efficient, transparent and immutable working system have a scope for variety of fields where data is being transferred.
This system came into existence as a backbone of digital currency, Bitcoin. But this system is now found applicable for other uses also. Another benefit of it is, that this system connects two end users, without having the need of an intermediate service, which boosts the security and privacy to next level. So apart from server infrastructure costs, this system is totally free (eliminating any service fees by third party intermediates).
So you can see blockchain in many fields in upcoming years including data-management, payments and purchases, to name a few.
A quick recap at end, blockchain is an online ledger system, which follows a unique and safe protocol of data management. The record of the data is available publically over network, but it is immutable. This system reduces the risks of data tampering to almost negligible amounts.