Blockchain is a type of distributed ledger with a distinct set of features where its network has no central authority. Since it is a shared and immutable ledger, the information in it is open for anyone to see. In short, blockchain is a decentralized database which logs records by grouping transactions (data) into blocks.
Reasons why the blockchain has gained so much traction:
Picture a spreadsheet that is duplicated thousands of times across a network of computers. This network is designed to regularly auto update this spreadsheet across all system. Information on a blockchain exists as a shared and continually reconciled database. The blockchain database isn’t stored in any single location which means the records it keeps are easily verifiable. No centralized version of this information exists for a hacker to penetrate. Hosted by millions of computers simultaneously, its data is accessible to anyone on the internet.
Who uses blockchain?
Currently, finance industry offers the strongest use cases for the blockchain technology. For instance, international remittances. The World Bank had projected that over $430 billion US in money transfers were sent in 2015. At the moment, there is a high demand for blockchain developers.
As per Gartner, it was estimated that blockchain will generate $3.1 trillion in new business value by 2030. With the technology set to be ready for more mainstream adoption through 2023, businesses should start to explore the technology now. This is because large multinational corporations are planning to capture larger market share by implementing blockchain components such as distributed ledger technology.