​

A blockchain is a partially encrypted record of transactions that is linked through cryptographic protocols. These protocols make it impossible for data to pass backward through the chain and make it difficult to change data throughout the chain. 

Essentially, blockchain is a series of blocks, where each block serves as a record that contains the cryptographic hash function of the previous block. It also contains a timestamp and other transaction data. These blocks build upon one another, creating an immutable ledger. In order to change data in a block, the data in subsequent blocks must be changed as well.

​

*** Graphic depicting blockchain***

​

Blockchains can contain thousands of blocks and are managed and distributed by an unknown number of computers instead of being owned by a single system. As a result, it is difficult to change the required blocks in order to amend data in a blockchain.  

​

Blockchain serves to record transactions between parties and was created as a public transaction ledger for the cryptocurrency, bitcoin. Before blockchain, bitcoin suffered from a lack of recording. Blockchain’s open ledgers remedied problems created by the record void, namely, double-spending. 

While blockchain is still primarily used for cryptocurrencies, it has potential implications for many other industries, including finance, commerce, real estate, and health. 

​

Blockchain is a democratized, decentralized system. It’s without a central authority and open for anyone to view. As such, any process or transaction that incorporates blockchain becomes open as well. This could increase transparency in business transactions, and blockchain advocates believe that it will decrease corruption and force individuals to be held accountable. 

Critics argue that blockchain is relatively slow and riddled with security issues, leaving it no place in high regulation industries. 

However, because blockchain is decentralized, it can carry no transaction costs. Losing transaction costs could cut intermediaries in most electronic transactions. Such intermediaries include entities such as iTunes, Amazon, and Airbnb. Consumers look to these companies to facilitate the sale of goods and services. Advocates believe that because blockchain eliminates the intermediary and passes information directly from one point to the next, it could be a means for more streamlined financial transactions with fewer fees. 

​

Blockchain is a relatively new technology and it’s use cases and true implications are being researched and debated more heavily. 

Several companies are working to develop ways to use blockchains to enhance user experiences and decrease costs. Time will tell how disruptive blockchain will be for established industries and what new innovations it breeds.