The word blockchain exists for almost a decade. Let’s sum up what we mean by it.
You can hardly find an average person who would be able to put it into simple words or explain the practical applications of this technology.
So, before we explain the blockchain technology let’s take a couple of steps back and grasp the bigger picture. The Internet is almost the skeleton (or at least the key backbone) of our modern world. Practically all communications happen over the Internet. All information is stored there and shared with the rest of us. The finances, entertainment, and even politics work online in one huge system. Nevertheless, this network is not centralized. The centralized system means the computers are tight to a certain node (a server, a provider, etc.). The node connects you with the rest of the nodes. And this is the place where the blockchain comes in.
It changes the way the data is saved, sent or even created. In its core, it’s just a way to structure the data. In the blockchain, the data is stored and distributed in a different way. Due to other technological developments (cryptocurrencies, for instance), the computers store all information and they are connected to all computers, too.
It’s the reason why it is described as a Distributed Ledger Technology. Once you realize how this network operates, you’ll understand why it has such a name.
When a computer joins the network, it receives a file with all information created in the blockchain. It is packed and encrypted in the form which is called a block. This block is followed by another block and so on. Together they form a chain. That’s why blockchain is a very reasonable and even self-explanatory name.
What’s so revolutionary about that? It’s basically a way to control the world. One can control and manipulate the information. In addition, more than 90% of the world’s cash is actually digital. The blockchain is ready to change the world.