What is Blockchain?
A blockchain is a decentralized ledger for financial transactions made using blockchain technology. It is a globally unique kind of distributed ledger system that is maintained in a secure way.
The term Blockchain is defined by Wikipedia as “a network of ledgers, the record of which is generally synchronized using cryptography.” It is basically an agreement mechanism that allows users to trade information with no middleman involved in the transaction.
So what is a blockchain and how does it work?
It is like a real-time, decentralized bookkeeping system. It helps facilitate the transfer of money and data without the involvement of any third party.
A blockchain can be used to verify any transaction that has been made. It can be used for the supply and demand, and also for other important features like currency exchange and trading, stock exchange, counterparty, and settlement.
When a bank, for example, needs to make a transaction between two companies they may make use of a blockchain to verify the details of the transaction. For example, if one company makes a large purchase and is supposed to pay the supplier directly, the bank may rely on the blockchain to make sure that the supplier pays the payment to the customer directly.
Order entry can also be verified through a blockchain. Companies that want to have orders placed may go through a blockchain and this will enable them to specify the amount, the price, the tax, and the time when the order should be processed.
With the blockchain being so centralized, it may not be easy to understand what a blockchain actually is. However, once you get a grasp of what it is, you can start to understand what it can do for you. Go here to know more 먹튀.