What is blockchain technology?

Blockchain is an addition-only transaction record. What this means is that new information can be written onto a blockchain, but older information, which is stored in blocks, cannot be edited, removed, or adjusted in any way. This is accomplished through cryptography, the practice of writing codes, which link newly added blocks to an existing blockchain. 

Because all data containing blocks are woven together as a chain, it is impossible to remove or change older blocks. Attempting to remove or change data held in previous blocks cannot be done without invalidating the entire chain. 

Blockchain is an extremely secure technology, further secured by the fact that it is decentralized. Unlike traditional centralized ledger platforms, blockchain technology relies on a decentralized, consensus-driven model. What this means is that there is no central authority overseeing the development of a blockchain. 

Instead, a number of computers are connected to a network where they are required to solve mathematical proofs before adding to the blockchain, often by spending large amounts of computing power. Once a proof is solved, the solution is shared amongst users who in turn must validate the solution of the proof by coming to a shared consensus. Once the proof has been verified, results are shared across the network. After consensus is achieved, new data containing blocks can be added to the blockchain.

Blockchain technology allows users to keep track of digital records, such as proof of ownership of digital currencies like Bitcoin without the need for a centralized record-keeper like traditional banks. The value of blockchain technology is in the ability to verify transactions, records, and exchange digital goods in a secure, transparent, decentralized, and efficient manner. 

Precisely recognizes that blockchain as a key technology trend of 2019 that will to drive industry forward. Through our Precisely Invent initiative for Blockchain, Precisely is focused on developing use case-driven solutions for enterprises to leverage blockchains to augment or replace the transactional systems that run their business. If your organization faces Next Wave challenges with Blockchain, we invite you to partner with us in creating use-case driven solutions that will have a great impact on your business.