What Is Blockchain Technology ?

What Is Blockchain Technology?

Blockchain, sometimes called distributed ledger technology (DLT), makes the history of any digital asset immutable and transparent through the use of decentralization and cryptographic hashing.

A simple analogy of how blockchain technology works can be compared to how a Google Docs document works. When you create a Google Doc and share it with a group of people, the document is simply distributed, not copied or moved. This creates a decentralized distribution chain that allows everyone to access the basic document at the same time. No one is forced to wait for changes from another party, while all document changes are recorded in real time, making changes completely transparent. However, an important loophole to note is that, unlike Google Docs, the original content and data on the blockchain cannot be changed once written, which increases the level of security.