Block chain is a digital ledger that provides a secure way of making and recording transactions, agreements and contracts – anything that needs to be recorded and verified as having taken place. However, uniquely, rather than being kept in one place like the more traditional ledger book, the database is shared across a network of computers. This network can encompass just a handful of users, or hundreds and thousands of people. The ledger becomes a long list of transactions that have taken place since the beginning of the network, getting bigger over time.
A block chain database consists of blocks and transactions. Blocks contain batches of transactions that are “hashed” and encoded. Each block contains the hash of the block before it, which links the two and forms the chain. This process validates each block, all the way back to the original, and is integral to the database’s security. When a transaction takes place, its details are encrypted and a unique multiple-character transaction number is generated. Instead of other users in the block chain being able to see the exact details of the transaction, this number is recorded in the ledger as a placeholder. All the users of the network will be able to see that the transaction has taken place but only the parties involved in the transaction can access and view its details. All this makes fraudulent activity easier to spot. Block chain could be a revolution for businesses, governments, organizations and individuals. For virtually any kind of transaction, it helpsto reduce the movement of money, products or sensitive information worldwide is provided in a secure manner.