WHAT IS BLOCKCHAIN?
Blockchain is an algorithm that sits on a distributed data structure for managing electronic cash without any central administration. In other words people do not know nothing about one another. As with all transactions therefore trust is critical. Originally designed for the crypto-currency Bitcoin, the blockchain architecture was spawned by the desire to avoid (government-guaranteed) money and bank-controlled payments, and their associated charges.
Blockchain monitors and verifies transactions by calling upon a de-centralised network of nodes which vote on the order in which transactions occur. As a result the network’s algorithm verifies that each transaction is unique. Once a majority of nodes reaches consensus that all transactions in the recent past are unique (that is, not double spent), they are cryptographically sealed into a block. Each new block is linked to previously sealed blocks to create a chain of accepted history, thereby preserving a verified record of every spend.