"The Blockchain"
Blockchain is closely linked to cryptocurrencies and refers to a chain of blocks. It is a type of record-keeping where the same information is kept on multiple devices, making it secure and hard to change because all the data is continuously checked for accuracy.
Blockchain is more than just a way to store data; it can be used for many things, such as storing medical records with tax IDs, tracking products during shipping, and more. The uses of blockchain are very broad.
One of the earliest uses came with cryptocurrencies, where it was used to store transparent value. The idea of storing value through blockchain was introduced by the first cryptocurrency, Bitcoin.
Bitcoin is based on the principles of data transparency, security, and availability. In reality, Bitcoin is not a program, an address, or a physical object. It is simply a piece of information, like an ID number, stored in the blockchain, which makes it transparent, secure, and always reliable. Bitcoin functions as a large accounting system with various addresses where Bitcoins are stored.
These addresses can send and receive Bitcoins from other users. Every transaction is visible, secure, and the total number of Bitcoins remains the same as the original amount—no Bitcoins can disappear from the system.
All the addresses are visible in the blockchain, so it's easy to check how many Bitcoins are on any address or see the latest transactions involving a specific address. This provides transparency and continuity, and helps prevent theft or the creation of additional Bitcoins.
Since the information about Bitcoin is stored on millions of computers around the world, it's always available and almost impossible to hack, as every computer in the network would need to be compromised.
Although all addresses are publicly visible, it doesn't mean anyone can access them. Each address has its own private key—a unique combination of random numbers and letters—which allows only the owner to access that specific address.