A blockchain is essentially a distributed database. Imagine a spreadsheet that is duplicated thousands of times across a network of computers. Then imagine that this network is designed to regularly update this spreadsheet and you have a basic understanding of the blockchain.

Information held on a blockchain exists as a shared — and continually reconciled — database. This way of using the network has a few obvious benefits. The blockchain database isn’t stored in any single location, meaning the records it keeps are truly public and easily verifiable. There is no centralized version of information or data for a hacker to corrupt. Because a blockchain is hosted by thousands or even millions of computers simultaneously, its data is accessible to anyone on the internet.

Blockchain technology is similar to the internet in the sense that it has a built-in robustness. By storing blocks of information that are identical across its network, the blockchain cannot be controlled by any single entity and it has no single point of failure.

 

 

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