Blockchain is a technology that enables the secure and decentralized storage and transmission of information. Developed since 2008, it functions as a large, public, and immutable ledger where each new piece of information (block) is linked to the previous ones, forming a chain. This technology offers high standards of transparency, immutability, and security, as it operates without a central authority of control.

Blockchain is a distributed and decentralized digital ledger. Distributed means that the recording of asset transactions and their details are stored in multiple locations simultaneously. Decentralized means that there is no single controlling authority.

Imagine blockchain as a large notebook shared by many people. Each page of this notebook represents a block of information, such as transactions. These pages, linked together, form a chain. Now, instead of having a single guardian monitoring this notebook, it is distributed among many people around the world. Each of them has an identical copy of the notebook and can see all the transactions recorded in it.

When someone wants to add a new transaction, it must be approved by the other people who hold the notebook. Once approved, the new transaction is added to all copies of the notebook simultaneously.

This decentralized approach, where everyone has a copy and must agree to add new information, makes blockchain secure and transparent. It is also used to create digital assets like Bitcoin, but also in other fields such as insurance contract management, product traceability, data protection, logistics, and healthcare…

This text is an excerpt from the book “INVESTING IN CRYPTOCURRENCIES” written by Eudes Djembo.

We invite you to read the following article: “UNDERSTANDING THE MAIN CRYPTO-ASSETS.”