What is Blockchain Technology ?

What is blockchain technology?

The blockchain is a ledger, or list, of all of a cryptocurrency’s transactions, and is the technology underlying Bitcoin and other cryptocurrencies. This decentralized public ledger keeps a record of all transactions that take place across the peer-to-peer network. Users can contribute to the network by providing computational power to assist with the verification of transactions in real time (known as “mining”).
This technology allows market participants to transfer assets across the Internet without the need for a central third party. Specifically, the buyer and seller interact directly with each other and there is no need for verification by a trusted third-party intermediary. Identifying information is encrypted, and no personal information is shared. However, a transaction record is created. For this reason, transactions are considered pseudonymous, not anonymous.
As shown in Figure 1, the blockchain public ledger technology has the potential to disrupt a wide variety of transactions, in addition to the traditional payments system. These include stocks, bonds, and other financial assets for which records are stored digitally and for which currently there is a need for a trusted third party to provide verification of the transaction.