How does Blockchain technology operate?

1. The technology allows transactions to be simultaneously anonymous and secure, peer-to-peer, instant, and frictionless.

2. It does this by distributing trust from powerful intermediaries to a large global network, which through mass collaboration, clever code, and cryptography, enables a tamper-proof public ledger of every transaction that’s ever happened on the network.

3. A block is the “current” part of a blockchain that records some or all of the recent transactions, and once completed, goes into the blockchain as a permanent database.

4. Each time a block gets completed, a new block is generated. Blocks are linked to each other (like a chain) in proper linear, chronological order with every block containing a hash of the previous block.

Benefits of blockchain technology: 

1. As a public ledger system, blockchain records and validate each and every transaction made, which makes it secure and reliable.

2. All the transactions made are authorized by miners, which makes the transactions immutable and prevent it from the threat of hacking.

3. Blockchain technology discards the need of any third-party or central authority for peer-to-peer transactions.

4. It allows decentralization of the technology.