Blockchain technology lies at the heart of the decentralization revolution that’s currently taking place. It is a global technological infrastructure where value and ownership can moved around the global quickly and securely.
The technology itself is effectively a digital ledger or record of the whole history of a cryptocurrency such as Bitcoin. This ledger is decentralized which means that no one person or organization has responsibility for it. It is a public record so anyone, you or me, can access its history.
In in the case of Bitcoin which uses blockchain technology, it gives us, the users of the cryptocurrency, confidence the Bitcoin is real and the person selling the Bitcoin had the right to sell it. The blockchain is constantly growing. It is at its smallest when the Bitcoin is first created. Each new event in the life of the Bitcoin (such as a change of owner) is added as another block.
The traditional design for servers is for each application to have its own server. Each application runs its own code in complete isolation to other applications. This means that when an application goes off-line or hacked its users and other applications are impacted.
With blockchain technology, any individual or organization can join the network. To do this they would set up a ‘node’ which copies the required data which is required on the nodes on the network to reach agreement.
This method allows user’s data to be kept private and applications to be decentralized. You can read more about what is the blockchain in this post.