Blockchain is basically a new method of storing data.
- The traditional way: We store everything on a centralized server. All data is gathered in one place to process. If the centralized server is manipulated, all data will be lost, or maybe modified. Hence, the integrity of data is at risk most of the time.
- With Blockchain:
- We store data in a block, which contains data and timestamp (created time). All created blocks obviously are connected, which create a consecutive chain in an order of time. That’s why we call this technology ‘Block-chain’.
- Not just that, the Blockchain is hosted by multiple computers. Each one is called ‘Node’, which contains a copy of the Blockchain. Every time a new block is created, it needs to be verified by more than 51% of the nodes. Only until then, the new block will be recorded.
- Created blocks cannot be altered. We can only add new blocks to record an altered version of the recorded data. This means the integrity of data is intact, and we can always trace it back to the original version.
Or read more about blockchain on our blog here.