Blockchain is a distributed database. In very simple terms it stores all transaction, where everyone can see all transactions history. Users can’t steal coins or cancel transactions. It determines that blockchain is trustworthy and clear for users. Blockchain was devised by Satoshi Nakamoto, unfortunately that person is unknown. Probably you heard about cryptocurrency named bitcoin, it’s a real example that uses blockchain.
Each block has a timestamp and connection to previous block. It contains a list of transactions in specific period. If block is filled by data, new block will be created. Next blocks are creating iteratively. The blockchain consists of chain of blocks. It’s implemented to create new block in every ten minutes.
Besides blockchain technology is based on peer-to-peer network, where every user of network has the same transactions history on own computer. Every computer can do a transaction or verification. It doesn’t have any centralized entity, which can follow your all transactions.Therefore It’s transparent to user, because all transaction’s history is public.
You need to remember that transactions in blockchain are irreparable, so you are not able to cancel transaction as it’s in bank.
Nowadays financial area is interested in blockchain technology. Blockchain becomes very popular in start up’s area. We can see a lots of new altcoins which are also based on blockchain. I think the trends going in that direction, because user loves to know everything, like it’s in blockchain. Are you able to image what will happen when banks develop a blockchain to their software?
