The purpose of the blockchain is to allow the recording and distribution of digital data without the possibility of modification. In this sense, the blockchain serves as the basis for an immutable register or record of transactions that cannot be changed, deleted, or destroyed. Blockchain is also referred to as Distributed Book Technology (DLT).
The blockchain concept was first introduced as a research project in 1991 and before its first popular use, Bitcoin, in 2009. The creation of multiple cryptocurrencies, decentralized financial applications (Defi), irreplaceable tokens (NFT), and smart contracts greatly increased the use of blockchain in the world. the following years. If you want to get more information about the blockchain trading protocol, you can browse the web.
Imagine a company that has a server farm of 10,000 machines that it uses to track all information about its customer accounts. The company has a warehouse that keeps all these computers under one roof and has complete control over each one and the data stored on it.
Blockchain makes it possible to distribute the data stored in this database across multiple network nodes in different locations.
This not only adds redundancy to the database but also ensures that the data it contains is correct – if one node in the database is updated, the other nodes are not affected, preventing bad actors. If a user falsifies a bitcoin transaction record, all other nodes will be forwarded among themselves, making it easier to find the node that has the erroneous data.
As a result, information and history (such as cryptocurrency transactions) are irreversible. A blockchain can store a range of information, including legal contracts, state identifications, and a company's goods inventory, in addition to a list of transactions (such as with a cryptocurrency).