Blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not only financial transactions, but virtually all values.
This definition is taken from the book Blockchain Revolution by Dawn and Alex Tapscott.
Blockchain is a "chain of blocks" that accurately reflects the essence of the phenomenon. Information blocks are assembled in a sequential chain and protected by cryptographic encryption.
Chains of information are not stored on any specific server, but exist simultaneously on all computers connected to the network.
It is believed that the widespread implementation of Blockchain technology will change the whole world. Why? Because the decentralized Blockchain system cannot be changed, i.e. hacked or faked.
At the same time, there is no need for intermediaries to carry out operations related to the transfer of important information. Information is transmitted using the peer-2-peer protocol - from user to user.
In this case, each participant has information about other participants, as well as access to the entire history of transactions carried out in the system.
The blockchain is a self-sufficient, but at the same time extremely open structure and does not require third parties for its operation. It was this goal - the absence of intermediaries - that pursued the creators of Bitcoin when they developed a protocol for transferring cryptocurrencies from user to user.
Digital money is transferred over the network without the help of assistants, which means that there is no need for banking services and payment systems. At the same time, only the owner owns the sluice lock. Money does not pass through third parties (banks), and your expenses and transactions are not controlled by anyone.
Not only monetary transactions, but also any other transactions in which there is a risk of one of the parties being unable to fulfill certain conditions will be protected and secured by the block procedure.
The blocks are connected in a scheme using complex mathematical algorithms. Each new block is tied strictly to the previous one, has a unique signature and a timestamp. Adding a new link to the chain is confirmed by each member of the system and leads to an automatic update of the registry.
If a new block appears, information about it appears in all databases. To hack this system, you would need to gain access to more than half of all the computers involved in the network, and this is technically unlikely.