With the increasing need for modernization in our day-to-day lives, people are open to accepting new technologies, and the 21st century is all about technology. From using a remote for controlling devices to using voice notes for giving commands, modern technology has made space in our regular lives.

There’s a common misconception among people that Bitcoin and Blockchain are one and the same, however, that is not the case. Creating cryptocurrencies is one of the applications of Blockchain technology. Other than Bitcoin, there are numerous applications that are being developed on the basis of blockchain technology.

So, what is Blockchain?

Think of it as a chain or records stored in the forms of blocks which are controlled by no single authority. In the simplest terms, Blockchain can be described as a data structure that holds transactional records and while ensuring security, transparency, and decentralization. A blockchain is a distributed ledger that is completely open to any and everyone on the network.

Each transaction on a blockchain is secured with a digital signature that proves its authenticity. Due to the use of encryption and digital signatures, the data stored on the blockchain is tamper-proof and cannot be changed. Blockchain technology allows all the network participants to reach an agreement, commonly known as consensus.

All the data stored on a blockchain is recorded digitally and has a common history that is available for all the network participants. This way, the chances of any fraudulent activity or duplication of transactions is eliminated without the need of a third-party.

The blockchain database is decentralized and is not limited to any single location, meaning that all the information and records kept on the blockchain are public and decentralized. Since the information is not stored in a single place, there’s no chance of corruption of the information by any hacker.