Blockchain represents a new paradigm for digital interactions and serves as the underlying technology for most cryptocurrencies.
A blockchain is a collaborative, tamper-resistant ledger that maintains transactional records. The transactional records (data) are grouped into blocks. A block is connected to the previous one by including a unique identifier that is based on the previous block’s data. As a result, if the data is changed in one block, it’s unique identifier changes, which can be seen in every subsequent block (providing tamper evidence). This domino effect allows all users within the blockchain to know if a previous block’s data has been tampered with. Since a blockchain network is difficult to alter or destroy, it provides a resilient method of collaborative record keeping.
Blockchain has the potential to be implemented in many different systems, to include manufacturing supply chains, data registries, digital identification, and records management.