What is blockchain?

In this guide we'll explain what blockchain technology is

Child reading book illustration

A shared record of transactions that is immutable

Blockchain is a decentralised and distributed record of transactions that is shared across a network. That means it’s not owned or controlled by one entity. Every transactions is put onto a block of data. And each block of transactions has a record of the previous blocks. This makes all the information shared on the blockchain transparent, immutable and trusted. Bitcoin was the birth of the blockchain.

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How does it work?

The blockchain keeps an open record of all the transactions that has ever taken place. Each new transaction is stored on this open and secure ‘database’ if you will. Every new transactions needs to be verified by the peer-to-peer network. When a transaction has been verified and added to the blockchain it remains there forever and it can’t be altered or removed by anyone. This is what makes blockchain technology so unique and with endless possibilities.

What is Bitcoin?

Back in 2008 and in the after effects of the financial crisis many started losing trust in the banks and financial systems that was setup to support us, and our lives. With this lack of trust in the central systems Bitcoin was born.

The concept was to create a peer-to-peer digital currency that could be sent by to anyone to anybody without the need for banks or other financial institutions approvals.

What makes it so special?

The idea behind blockchain and Bitcoin is very simple. But it has endless possibilities. Today we are bombarded with news stories, social media posts, everyday there’s a new technology emerging, new products and services are created daily. This makes it all very busy and it’s hard to distinguish what is genuine and what might be fake.

This is where blockchain can come and bring trust and value. With blockchain comes countless amount of opportunities and great new ideas to be built on. That is what makes blockchain and cryptocurrencies so special.

With added smart contract technology (famous with Ethereum blockchain) we can create future services that works automatically to serve us. For example when renting cars, paying for insurance, taking out mortgages, buys concert tickets, paying taxes, sharing our medical files, the possibilities are endless.

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