What is the Blockchain Technology?

blockchain

blockchain

We often hear the term “Blockchain”. However, most of us don’t know the real meaning behind this term. Blockchain is the computing and IT-related technology where normally the accounting and transactional ledgers are interlinked. These transactional ledgers are sometimes called blocks, and the interlinking of these transactional ledgers is called a blockchain.

For instance, once we have a bank account. We have a ledger book where we keep all the transactional records we made with the bank. We store data in the ledger with the science of accounting, and in modern times, with the help of accounting software. Similarly, banks maintain the ledgers of their customers.

The process of interlinking these ledgers works through the special coding framework, and these personal and banking ledgers interact with each other through the automatic procedure by a set protocol of data flow. This is called the blockchain reference architecture.

Reference Architecture

With the help of a blockchain network, the ownership of assets, whether tangible or intangible, is transferred from one entity to another. Smart contract facilitates this entire process by validating and authenticating the ownership and transfer of an asset.

Blockchain technology is widely used in banking, cryptocurrencies, finance, supply chains, healthcare, digital certification in the education industry, and many other life segments.

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  • Freelance Accountant, Full Charge Bookkeeper, Financial Analyst, and Ex Banker with 15 Years of Professional Experience. Also a Blogger...