What is a blockchain?

What is a blockchain?

A blockchain from a distance may not look much different than the things you are familiar with.

With blockchain, many people can record information, and a community of users controls how records are modified and updated. Like Wikipedia, records are not the product of a single publisher. No one controls the information.

However, looking closer, the differences that make blockchain technology unique are clearer.

The short definition of “what is blockchain” is a list of data records that works as a decentralized ledger. The data is organized into so-called “blocks” that are chronologically arranged and encrypted by cryptography.

Who created the blockchain?

The earliest blockchain model was created in the early 1990s, when computer scientist Stuart Haber and physicist W. Scott Storneta used cryptographic techniques in a blockchain. This was used as a way to protect digital documents from data tampering.

The achievements of Haber and Stornetta certainly inspire the work of many other computer scientists and cryptographic enthusiasts. Ultimately, this led to the creation of Bitcoin as the first cryptocurrency operating on the basis of blockchain decentralization.

What is blockchain used for?

Although blockchain technology is older than cryptocurrencies, it was only after Bitcoin was created in 2008 that the true and long-term potential began to be seen. Since then, interest in it has increased gradually, with increasing attention being paid to decentralized electronic money systems.

Blockchain technology is mainly used for recording cryptocurrency transactions, but it is suitable for many other types of digital data and can be applied in various cases. The oldest, most secure and largest blockchain network is that of Bitcoin, which is designed with a careful and balanced combination of cryptography and game theory.