What is Blockchain

What is Blockchain and why should you care?

If you have been following fintech and the ongoing crypto craze, it is highly likely that you have heard about blockchain technology.

This is the technology behind cryptocurrencies among other disruptive innovations in the market today. Tech enthusiasts believe that this is the next hottest thing after artificial intelligence.

But what is it? Simply put, a blockchain is a distributed ledger where data can be recorded and stored. The ledger is immutable meaning that no one can alter a transaction after it has been recorded. Consequently, if an error occurs on a blockchain, a new transaction must be used to reverse the mistake.

While blockchain has many use cases, it is mostly synonymous with the crypto industry. A digital currency based on the blockchain can be traced from source to the end without revealing the real identity of the holder. This means that a single coin cannot be duplicated or spent twice.

Characteristics of a blockchain.

Blockchain has four distinct characteristics which make it suitable as a trustworthy record of value. These include consensus, provenance, immutability, and finality.


For a transaction to be validated, all parties within the network must follow some rules and come into a consensus. If a consensus is not achieved, then the transaction cannot be validated. The consensus mechanism for bitcoin blockchain is known as proof of work while that of Ethereum is known as proof of concept.


Provenance is all about traceability. Any record documented on the public ledger must be traceable from the beginning to the end. This includes the various coins issued through a given ledger.


Once a record is entered on the blockchain, it cannot be edited. As mentioned earlier, if an error occurs during documenting, a new transaction must be registered to explain it.


In a blockchain network, there is only one ledger. This means that everyone in the system can see everything that happens.

Facts about Blockchain

  • Until 2009, blockchain was purely used in computer science but all that changed when the first cryptocurrency, Bitcoin, was born
  • Blockchain provides an incorruptible method of storing data without the need for a central authority
  • Data in a blockchain is stored in the form of multiple blocks linked together to form one large block hence the name blockchain
  • A blockchain is a democratized system meaning it doesn’t have a central authority
  • Information on a blockchain is transparent and can be seen by anyone and everyone
  • While there might be infrastructural costs on a blockchain, there are no transaction costs
  • Blockchain provides a safe, trouble-free, inventive, and automated method of relaying information from one point to another
  • A blockchain is verifiable and difficult to falsify
  • The blockchain cannot be forfeited. This makes it impossible to tamper with the stored data.
  • Blockchain allows the parties involved to sign each transaction to maintain high levels of integrity digitally

Bottom Line.

Outside cryptocurrencies, blockchain has a lot of use cases. For instance, companies like IBM are using the technology to track products through their entire supply chains. Others tech firms are exploring its potential in securing the Internet of Things.

While the future of cryptocurrencies remains hazy, blockchain is undoubtedly going to disrupt industries. The mainstream industry is already adopting it en masse which means that there is no looking back.

Steven King
We’re a new age Broker providing clients access to the Global Financial Markets by using only Crypto Currencies.