Blockchain technology is used to store and send information about transactions concluded on the internet. These transactions are arranged in consecutive blocks of data. Each block contains information about a specific number of transactions.
After filling it with transaction information, another data block is created, followed by the next and next block. This creates a kind of chain (hence the name: blockchain is a block chain). A new block appears on average every 10 minutes. It may contain information about various transactions, e.g. commercial transactions, ownership status, shares, shares, electricity generation and the purchase or sale of currencies, including cryptocurrencies – electronic currencies.
The essence of blockchain is to maintain a joint and collective transaction accounting book, in digital form, scattered throughout the network, in the same copies. This book is a collection of all transactions carried out at the moment in blockchain. This technology is based on peer-to-peer networks without central computers, transaction management and verification systems. Any computer on the network can participate in transaction transmission and authentication. In the case of blockchain, these will be blocks within the transaction book. The book is open to everyone, but fully secured by complicated cryptographic tools against unauthorized access.
Thanks to this entry, transactions are public, available to everyone, but visible only under the user’s access rights. Their entire history, from the beginning of blockchain existence to today, can be reviewed and verified.
Currently, blockchain can be used to handle various transactions, but work is underway to use the block chain as an accounting book in banking, a document authentication system, a digital signature in state administration and a notary record. All these transactions can take place outside the system that has been functioning for centuries – without the participation of public trust institutions, directly between the parties to the transaction. You can store any type of transaction in blockchain data blocks. One of the applications is the cryptocurrencies mentioned for example Bitcoin.