Blockchain

Blockchain refers to a type of data structure that enables identifying and tracking transactions digitally and sharing this information across a distributed network of computers, creating in a sense a distributed trust network. The distributed ledger technology offered by blockchain provides a transparent and secure means for tracking the ownership and transfer of assets.

Blockchain Technology in Bitcoin and at the Enterprise Level

Initially used as the transactional technology behind the cryptocurrency (or digital currency) Bitcoin, blockchain technology has started to gain traction in the enterprise as well. As is the case with Bitcoin, blockchain enables enterprises to make and verify transactions over a network without the need for a central authority.

In addition to tracking assets and the transfer of assets throughout supply chains, enterprises are also looking to use blockchain to electronically proffer and enforce contracts.

Blockchain has gained considerable traction in recent years as Bitcoin’s use has increased and the technology has become more mainstream with companies. In fact, according to a study released in May 2016 by Pegasystems, Cognizant and Marketforce, many global financial services retailers see blockchain as having the potential to be the most significant technological innovation since the Internet.

How Blockchain Works

Blockchain uses cryptography to create a distributed trust network wherein each participant on the network is able to manipulate the digital ledger of transactions securely and without requiring a central authority.

In a sense, a blockchain serves as a global spreadsheet or ledger that anyone on the network can view at any time. All the transactions are verified, cleared and recorded in a block that is encrypted and saved periodically and is linked to the preceding block, creating a chain.

The blockchain process of securely and permanently time-stamping and recording all transactions makes it extremely difficult for a user to alter the ledger once a block in a blockchain has been stored.

Forrest Stroud
Forrest Stroud
Forrest is an experienced, entrepreneurial and well-rounded professional with 15+ years covering technology, business software, website design, programming and more.

Top Articles

The Complete List of 1500+ Common Text Abbreviations & Acronyms

UPDATED: This article was updated April 6, 2021 by Web Webster   From A3 to ZZZ we list 1,559 text message and online chat abbreviations to...

How to Create a Website Shortcut on Your Desktop

UPDATED: This article was updated April 6, 2021 by Web Webster   This Webopedia guide will show you how to create a desktop shortcut to a...

Windows Operating System History & Versions

The Windows operating system (Windows OS) refers to a family of operating systems developed by Microsoft Corporation. We look at the history of Windows...

What are the 5 Generations of Computers?

UPDATED: This article was updated on April 6, 2021 by Web Webster   Learn about each of the 5 generations of computers and major technology developments...

Random Access Memory (RAM)...

UPDATED: This article Updated April 6, 2021 by Web Webster   Random Access Memory (RAM)...

OEM – original equipment...

UPDATED: This article was updated April 6, 2021 by Web Webster OEM (pronounced as...

Best ERP Software for...

UPDATED: This page was updated April 6, 2021 by Web Webster   Enterprise resource planning...