Blockchain technology has gained popularity in recent times. This article covers some of the fundamental concepts associated with it, including:

• What is blockchain?
• Why do we need blockchain?
• How does blockchain ensure trust?
• Who invented it?
• When to use it?
• When not to use it?

So, let’s get started.

What is blockchain?

In simple terms, blockchain refers to a chain of blocks. Blocks, in turn, contain vital information, such as transaction details, participants, and unique data about that block. Thus, a block acts as a digital information holder.

Why do we need blockchain?

Blockchain is like a ledger or a record keeping book. Problem with record keeping book is that anyone can steal it or modify it. However, blockchain overcomes this problem.

How does blockchain ensure trust?

Blockchain operates like a distributed ledger, meaning that instead of a single entity owning it, it is collectively owned. As a result, consensus of the majority is required to change or update the information on a block. Additionally, once the data has been written on a block, it cannot be modified retroactively.

Who invented it?

Satoshi Nakamoto, a person whose identity remains unknown, invented blockchain in 2008.

When to use it?

Blockchain technology is useful when there is a need for decentralization or a shared ledger/database.

When not to use it?

Since transactions take time and consume significant resources in blockchain, it is not recommended for applications that require faster performance.