Blockchain

A data structure that stores transactional records and upholds security, transparency, and
decentralization is the simplest way to describe Blockchain. It can also be viewed as a chain of
records that are held in the form of blocks and are managed by multiple authorities. A distributed
ledger known as a blockchain is accessible to everyone on the network. Once data is placed on a
blockchain, it is very challenging to change or modify it.

On a blockchain, every transaction is protected by a digital signature that attests to its legitimacy.
The information stored on the blockchain is tamper-proof and cannot be altered thanks to the use of
encryption and digital signatures.

Consensus, which is the process of all network participants agreeing, is made possible by blockchain
technology. Every piece of information kept on a blockchain is digitally recorded and has a shared
history that is accessible to everyone on the network. By doing this, any possibility of fraud or
transaction duplication is eliminated without the aid of a third party.

Think about a scenario in which you are trying to find a way to send some money to a friend who
lives somewhere else to better understand blockchain. A bank or a service that allows you to
transfer money, like UPI or Paytm, are two options you can typically use. With this option, third
parties are needed to complete the transaction, which results in an additional sum of money being
taken out of your account as a transfer fee. Furthermore, you cannot guarantee the safety of your
money in these circumstances because it is very likely that a hacker will disrupt the network and take
your money. Customer suffering occurs in both situations. Blockchain plays a role in this.

In these situations, using a blockchain to transfer money instead of a bank makes the process much
simpler and more secure. There is no additional cost because you process the funds directly, doing
away with the need for a middleman. Additionally, because the blockchain database is decentralized
and not restricted to a single location, all data, and records stored there are both public and
decentralized. There is no possibility of information corruption by any hackers because the
information is not kept in a single location.