A blockchain is a distributed ledger that can record transactions or any other information in continuously growing blocks. Through using a cryptographic hash, these blocks, when created, would be immutable, It means that once any information is recorded in the system, they can never be deleted or changed. It makes blockchain a great solution in any situation where recording data needs to be traceable, transparent and performed by untrusted members of a network.

The blockchain technology has made it possible for a digital and decentralized currency to become operational. Far more than being just an underlying technology of a cryptocurrency, blockchain technology is going to be as revolutionary as the historical inventions such as steam or combustion engine. This technology can revolutionize the digital world; using the ‘distributed consensus’ feature for each old or new online transaction, it can process transactions that allow digital assets to be identified in the future. And this is all possible without any risk against one’s privacy, in a secure environment for the digital assets in all sides of the transaction.

Due to the requirement of a trusted third party, online financial transactions have become the monopoly of a few corporations, leading to an unnecessary increase in transactions fees.

Using cryptography, digital signatures, and subsequent verification by other participants (known as miners) in the network, blockchain does not rely on any central node or third party in a transaction process. Every transaction is secured by a digital signature. Each transaction is digitally signed by the sender’s private key before being sent to the receiver’s public key. In order to be able to spend any amount of money, the owner of the money needs to prove that they own the private key. By using the public key of the sender, a miner identifies the digital signature (ownership of the private key) and if correct, confirms it (the miner runs some other checks and marks the transaction as valid).