As the world witnesses the rise of cryptocurrency and Bitcoin, the term ‘Blockchain Technology’ is often heard around social circles. And many are left to wonder what it means. People often confuse Bitcoin and blockchain technology to be one and the same. However, this is not the case.
Bitcoin is the first application of blockchain technology however the same technology can be used in other industries as well. Knowing the basics of blockchain technology can help one understand what the technology is and how it is used.
Blockchain can be defined as a shared digital ledger where transactions are recorded in a private or public peer-to-peer network.
The ‘blocks’ represent the transactions and these are added in a chronological sequence allowing the participants to keep record of all the transactions. Once a block is completed, it is added into the permanent database of blockchain. The transaction blocks which have been confirmed are linked with the next block and thus a blockchain is formed.