What is Blockchain?

Blockchain, ie Block Chain, defines the chain structure consisting of blocks. Blockchain provides the tracking of encrypted transactions as a distributed database system. Blockchain facilitates processes such as recording transactions and tracking assets in the business network. At the same time, this system can also be considered as a book that can be shared and cannot be modified.

Why is Blockchain Technology Important?

In order for business processes to function safely and efficiently, information must be transferred in the fastest and most accurate way possible. The main benefit of Blockchain at this point is that it is a ledger that only authorised network members can access. Moreover, members who can access the system cannot make any changes to the data. Another feature that makes Blockchain ideal is that it is a structure that can be shared and provides transparent information. This is a reassuring element for the user.

How Does Blockchain Work?

Blockchain does not have a centralised system. Access to the data in the blockchain can be provided through all computers. In addition to accessing the information, it is possible to transparently access information such as who the transactions made here belong to and when they were made.

Since the transactions made in this technology cannot be changed, a new record is added to the system when a correction is desired. Thus, all details are protected and all correct and incorrect transactions can be observed.

In Blockchain technology, identity is created in the form of a user identification number that is recognised by all networks. Thus, instead of using personal information such as user name and surname, all transactions are made with this ID number. The transactions made here are encrypted with mathematical calculations in the user's system, i.e. hash functions, and recorded on the chain.

The character strings created with hash functions consist of letters and numbers. In case of the slightest change, a different sequence is created.

All transactions are verified by the user and the records become permanent. This shows that this technology is not centralised. In short, what makes blockchain technology important is that it has an anonymous structure, is not a centralised system, and cannot be corrupted or hacked.

What Does Blockchain Technology Do?

Blockchain technology offers data privacy with its ability to store information securely. To change the data contained here, you need to get approval from other blocks. This activates the approval mechanism as many as the number of blocks. Thus, the system ensures that the data is secure by preventing a good or malicious action that may come from outside.

What are the Blockchain Usage Areas?

Blockchain technology has a structure and function that can be used in many different sectors. Here are the main sectors where this technology is widely used:

Public sector,

Finance sector,

Energy sector,

Health sector,

Supply chain.