What is the Blockchain? This question may be asked many times in any of the currency courses taught these days. The answer to this question is very simple – it is the technology that underpins all of the different forms of virtual money today! And by “underlying” all the forms of virtual money, we mean the technology that underlies the transfer of wealth from one person to another, from one company to another, from one government to another – all done with the help of cryptosystems! The Blockchain is nothing more than a ledger or database which holds all the financial transactions of all people and companies who transact and buy and sell using the currency associated with that particular system. This technology has become so important that it is actually being referred to as the foundation of modern-day cryptography… or, more accurately, the backbone or the “backbone” upon which all the encryption and decryption take place to prevent hacking.
The genius behind the workings of the Blockchain comes from its ability to quickly and efficiently record all of the various transactions that take place on the system. There is actually no limit as to how many transactions can take place within the ledger, and this is what makes the Blockchain extremely flexible; it is truly scalable to pretty much any size. This is what really sets the Blockchain apart from all other forms of Cryptocurrency: the speed with which it can compile and update the ledger allows for real time confirmation and transfers of wealth, which makes for faster growths and financial profits for everyone involved in its constant development.
The main reason that most people are asking the question of “what is the Blockchain” in the first place is because of its fundamental technology, the ledger/blockchain. The ledger is essentially a database which keeps up all of the various transactions that happen on the Blockchain through the use of client-server technology. One of the most widely known uses of the Blockchain is called “Proof of Existence” or “PoE.” The PoE method is based on the idea of creating digital proofs which can be downloaded, allowing anyone to verify the integrity and validity of a given transaction without actually needing to actually witness or input the transaction in question. So now the question is, just what is the Blockchain and how does it affect you?