A blockchain is a network is built upon the same aims and ideals of the internet, data can be preserved in a hostile environment and communication cannot be hindered even when a node in a peer-to-peer network is taken down.
Digital data is typically stored in a silo, these silos can be in the form of a server farm, desktop computer or phone. Data stored in silos can be lost like losing your phone and having your data backed up to the cloud might not be so safe as hackers might find a way to modify this data. The alternative is to have multiple copies of this data distributed throughout the world, having multiple copies reduces the risk of operating a silo. It is also very secure because changes to this data is protected by consensus and cryptography. Having data that is resilient to disasters and dishonest modifications characterizes distributed ledger technology, also called a blockchain.
What is Blockchain?
Data stored in a blockchain can only be appended but not deleted. The data is distributed through a peer-to-peer network using an agreed upon method of communication and is secured by algorithms and cryptography. New data added to the blockchain must be reached by consensus in the peer-to-peer network. Blockchain technology not only enables the exchange of goods and services without a central data store or authority, it is also an area of active research with tangible applications in many industries.
Benefits of Blockchain
A blockchain is a network is built upon the same aims and ideals of the internet, data can be preserved in a hostile environment and communication cannot be hindered even when a node in a peer-to-peer network is taken down. It is resilient to hacking because dishonest changes to the data require a lot of computing power to force a change, if there is no consensus to whether a new record is added it is discarded by the network. The previous states of data in a blockchain are never deleted and becomes harder and harder to modify the longer it stays unchallenged in a blockchain.