Bitcoin, the first real implementation of blockchain technology appeared during a period when people manifested a deep distrust in the banking and financial system.
Grasping blockchain fundamentals
Whether it was pure coincidence or skillfully planned timing, blockchain emerged as a technology which guarantees trust between untrusted parties, after the aftermath of the 2008 financial crisis.
At its core, blockchain is a shared, digital distributed ledger, capable of storing both tangible and intangible assets, across a widespread decentralized peer to peer network. Although blockchain is a relative newcomer to the tech scene, it is actually an amalgamation of preexisting technologies structured in a cohesive architecture to create an ecosystem where trust and consensus are guaranteed through complex mathematics. Although it may seem intimidating at first glance, especially for the uninitiated in tech, grasping blockchain fundamentals is a matter of understanding the general principles behind the inner-workings of the technology.
A tried and tested method that yields results among non-technical individuals is to analyze the core benefits of blockchain technology: decentralization, data dependency, immutability, transparency, security, and comprehending on a basic level how they are achieved in the blockchain ecosystem. As a fusion of multiple technologies, each of the inherent properties of blockchain is achieved through the technological layers that compose it, as well as the ingenious architecture of the overall system. On closer inspection, the name blockchain is quite suggestive when it comes to how the technology stores the information and ensures tamper resistance.
“Block” indicates the type of structure in which the data is stored, and “chain” implies that each block of information is linked with the previous and following block to create a structure that cannot be compromised through traditional means.