What is blockchain?

Blockchain technology is used to store and send information about transactions concluded on the Internet. Those are arranged in the form of consecutive blocks of data. One block contains information about a specified number of transactions, after its saturation with information, another block of data is created, followed by the next block, creating a kind of chain. In the chain, on average, a new block appears every 10 minutes, in which information about various transactions, eg trade, stocks, shares, stocks, sales, purchase of electricity, purchase or sale of currencies, including cryptocurrencies, ie currencies, may be sent.

image001 (1)

The essence of blockchain is to maintain a joint and collective accounting book of transactions, in a digital form, scattered across the entire network, in the same copies. This technology is based on a peer-to-peer network without central computers, management, and transaction verification systems. Every computer in the network can participate in the transfer and authentication of transactions. In the case of blockchains, they will be blocks within the transaction book. The book is open to everyone, but it is fully protected against unauthorized access by complex cryptographic tools. The user can view only their transactions. Thanks to this record, transactions are public, but available only within the access rights for a given user and their entire history, from the very beginning of the existence of the blockchain to this day, you can review and verify.

Currently, blockchain can be used to handle various transactions (trade, currency, stocks, shares, electricity market), but work is underway to use the blockchain, as an accounting book in banking, document authentication system, digital signature in state administration and notarization. All these transactions may take place outside the system functioning for centuries – without the participation of public trust institutions, directly between the parties to the transaction. You can store any type of transaction in blockchain block data blocks. One of the applications are cryptocurrencies, e.g. Bitcoin. While the future of Bitcoin itself is under question, blockchain, as a technology and transaction platform, has found recognition in many industries, including financial, energy or trade.

Essentially cryptocurrencies market has given birth to blockchain and while the markets itself undergoes a slight slowdown, the technology is now used in many banks not only other verification tool but also as a tool to investigate and predict market behavior. A new market has formed where banks offer security services based on the Blockchain technology four example BNP Paribas.

Richard Butler Creagh is the founder of Henley Finance. Find out more about getting the right finance for you on the Henley Finance website here. Follow the Richard Butler Creagh Twitter page for the latest news on bridging finance here. Learn more about the work of Richard Butler Creagh here.