Blockchain is a decentralized database consisting of a chain of blocks in which all transactions of network members are stored. Simply put, a blockchain is a combination of computers connected to each other rather than to a central server.
Traditional databases work according to the "client-server" principle, that is, all information is stored in one place, for example, in a bank. This technology has several disadvantages: the server can be hacked, data can be changed, and money can be transferred to other accounts.
Thanks to blockchain technology, transaction data is not on one server, but on all computers connected to the same network. When a new transaction appears, it is copied to all computers, that is, it cannot be changed without the consent of all network participants, which excludes the possibility of hacking and software failure.
Blockchain technology is very widely used in the financial industry. However, nowadays it is used not only for cryptocurrencies, but also for keeping documentation, digital notary and smart contracts. It is also actively used in scientific research, medicine, management, politics, education, etc.
