"Blockchain" has become a popular term in recent years, particularly in technical industries. But what is the concept behind it and what are its applications? And could it transform the way that information is developed and managed?
Blockchain is a concept that was invented by a mysterious person going by the pseudonym Satoshi Nakamoto. Even now, nobody really knows who this person is. The concept was first published in his whitepaper “Bitcoin: A Peer-to-Peer Electronic Cash System” a decade ago, back in 2008.
A blockchain is a digitized, distributed “ledger” that contains unchangeable data in the form of packets or blocks. A ledger is a record of financial transactions, which is used to prepare financial statements for the organization. It includes information of revenues and expenses. Figure 1 shows an example of what a ledger looks like.
Date | Description | Debit | Credit | Balance |
Jan. 10, 2018 | Journal Page 1 | $15,000 | | $15,000 |
Jan. 20, 2018 | Journal Page 1 | | $2,000 | ...
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