Blockchain technology is a very practical solution to the problem of storing, authenticating and protecting data. Think of a blockchain as a decentralized, extremely secure database. Or, to get slightly more technical, it’s a distributed, peer-to-peer ledger of records. While nothing is ever totally ‘hack-proof’, blockchain represents a huge leap forward compared to our current data security technology as, unlike a centralized database, there’s no one single point of failure.
The records in a blockchain are called ‘blocks’ and every block is connected to the previous block (hence, ‘block’ and ‘chain’). The whole chain is self-managed, which means there’s no one person or organization in charge of the entire chain. If that sounds familiar, it might be because the virtual currency Bitcoin functions on blockchain technology.
Financial services, insurance and healthcare are just some of the sectors where blockchains are likely to be heavily adopted. In fact, 90 percent of major European and North American banks are exploring blockchain solutions.
Credits: Forbes (Technology Mega Trends That Will Change The World In 2018)