Blockchain: Definition, Benefits and How It Works

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In general, blockchain is a digital transaction based on its structure, where each individual record, which is usually called a block, will be linked into a list known as a chain.

Blockchain is generally also used to record transaction activities carried out using cryptocurrency. Then, what is actually called a blockchain? How does it work?

Understanding Blockchain

Blockchain is a series of data records managed by a group of computers, which are not owned by any one entity. The various data blocks are secured and tied to each other using cryptographic principles.

The network in it does not have a central authority. Because, in it are ledger records that are distributed and do not change. All the information contained in it can be seen by anyone because it is open to people who want to see it.

Therefore, everything that has been built on the blockchain will generally be transparent and anyone involved in it must be responsible for their respective actions.

Not only that, blockchain also has no transaction costs like infrastructure costs. So blockchain is a fairly simple but smart way to convey information from person A to person B safely and automatically.

The blocks contained therein have been verified by millions of computers and then distributed using the internet. These verified blocks are then added to the chain and spread across a special network.

After that, just make unique notes and history in it. For example, when we buy train tickets on an application or website. Companies that provide credit cards will make deductions to process transactions.

However, by using blockchain, it is certain that train operators will not only be able to save costs when processing credit cards. But it can also move all train ticket sales processes onto the blockchain

The only two parties in this transaction are the train company and the prospective passengers. Tickets here are called blocks, which can then be added to the ticket blockchain.

This is similar to monetary transactions on the blockchain, namely a unique record, some of which can be verified and some which cannot. The blockchain in the ticket also includes a record of all transactions for a particular train. Or even for the entire train network, which consists of every ticket ever sold for every trip. (Source : gramedia)