An Introduction to Blockchain Technology For Beginners

Blockchain first came into play back in 2009,  but it has only been the past few years that it has really evolved into the mainstream.

If you’ve been hearing more about it but aren’t too sure what exactly it includes, or are completely new to it and want to implement it within your business, you’re not alone.

This is why we’ve put together this introduction to Blockchain Technology which should help you to understand more just what it is, how you can utilize it and what exactly it means.

It is becoming more widely used, for example with EaaS (explorer as a service) which is an open-source, Blockchain Explorer Portal and a great gateway into the blockchain world. Keep on reading to find out more about Blockchain and get inspired. 

What is Blockchain?

At its core, Blockchain is a decentralized, digital ledger that records transactions across a network of computers.

While traditional databases are controlled by a central authority, a blockchain distributes data across all participants in the network, making it transparent, secure and nearly impossible to alter retroactively.

Every transaction is recorded in what’s called a “block” linked together to form a “chain” (hence the name blockchain!)

How does it work?

Blockchain relies on three key principles:

1. Decentralization: Instead of a single entity controlling the ledger, all participants maintain a copy, reducing the risk of fraud or manipulation.
   
2. Transparency: Transactions are visible to all participants, which builds trust within the network.
   
3. Immutability: Once a transaction is added, it cannot be changed or deleted, ensuring data integrity.

Blockchain technology is often thought to just be used for Cryptocurrency, but it extends far beyond this.

Some of the other ways it is used include for supply chain management to track products from origin to consumer, increasing transparency and reducing fraud.

It’s also used in healthcare to securely store patient records and to provide secure, verifiable digital identities and reduce identity theft.

This shows just how useful Blockchain is in so many industries, and its use is only going to become more widespread. 

What are the benefits of Blockchain?

There are a myriad of benefits to using Blockchain. The main one is that its encryption and decentralization storage make data manipulation extremely difficult.

It’s also very efficient thanks to automated verification processes that reduce intermediaries and processing time.

It can also save your business money as there are fewer middlemen, leading to lower operational costs and saving you money that can be spent elsewhere.

This should hopefully have made the world of Blockchain that bit clearer, enabling you to utilize it going forward. Whether you need to use it for work, or want to use it within your own business, it’s good to understand what it entails.

Blockchain technology represents a fundamental shift in how data is stored, shared and verified so it’s important to know the benefits and processes of how it works.

Have you used Blockchain, or is it something you’re going to start doing? Let us know in the comments below.