The block chain is a growing list of transactions. Each new addition to the block chain is called a block. Each block contains data on transactions that have happened on the block’s network. Over time, this information is compiled into a single digital ledger. This makes it possible to track the flow of money or other assets across multiple networks. In addition, connecting multiple blockchains creates a decentralized network accessible only to those who possess the private key for each individual one.
Here’s how it keeps track of information: Every time a new transaction occurs, a new block is created. Afterward, all the existing blocks are linked together in sequence to form a chain. This connects previous blocks together and creates an ever-expanding archive of data. Each new addition to the block chain is called a confirmation- hence the name ‘blockchain.’ Although each new addition only contains confirmed transactions, older blocks can be revised and updated as well, resulting in a changing archive of data.
The main use for the block chain beyond cryptocurrency is in supply chains. Digital blocks make it possible to keep track of every stage of an item’s creation and distribution. This allows companies and governments to track the origin and movement of items without compromising security. Blockchains are also useful for keeping track of items during storage or manufacture. In fact, many companies use blockchain technology as early as their product design phase to guarantee quality control and transparency in supply chains.
The block chain is a digital ledger that is growing continuously with new information. It is a system for storing data in a series of linked blocks. Essentially, the block chain is a dynamic database that can be used for many purposes beyond cryptocurrency. From banking to food safety, the world is discovering how effective the block chain can be for its needs every day.