Learning Module 4
Block 4 - Blockchain
To understand the basics of blockchain it is fundamental to talk about distributed ledgers. In essence, they are databases and record-keeping systems that store the data in a transparent, decentralized, and secure way.
Let’s break that down, even more, using the example of buying a new apartment. Imagine you are buying an apartment as a first-time home owner. This apartment has a record of its when it was built, its previous owners, and its maintenance history over the past years. In addition to this, as a buyer, you would also want to have a record of all of the back-and-forth communication between the real estate agent, your offers, as well as any other necessary information for an important purchase like this. All this information can be stored on a distributed ledger in chronological order, which essentially makes it a transparent and shared database. It is like a magical record book that contains all the information about different touchpoints and transactions that have taken place on the blockchain network. In the example we just talked about, a distributed ledger is beneficial for the buyer because it provides verifiable details about the property, whereas for the seller it provides proof and details of the sale process. The distributed ledger is maintained by everyone in the blockchain network, and everyone has a copy of it. Since it is decentralized and not controlled by one entity. The ledger is secure, and transparent, and cannot be tampered with without the agreement of others on the network once a transaction has been added to the ledger.