The rapid growth of the cryptocurrency sector has led to new digital and decentralized currencies using blockchain technology. Blockchain technology is a shared public ledger that uses blocks to record data in a business network.
Once these blocks are assembled, they are linked to a previously filled block, resulting in a chain. Collectively, these blocks create a database timeline, also referred to as a blockchain.
Given this brief overview of how blockchains work, cryptocurrencies using blockchain technology, such as bitcoin, make transactions easier. Moreover, duplication and counterfeit payments are almost impossible due to the immutable nature of blockchain technology.
A payment using blockchain is outside the government’s jurisdiction. Because of its divisibility, inflation resistance, privacy, and transparency, blockchain technology has disrupted many industries. It also utilizes a peer-to-peer network to minimize issues in databases and address confidentiality concerns.
To further understand how blockchain technology changed and improved various sectors of society regarding their financial landscape, read this infographic.