A Google Document is a good analogy for understanding blockchain technology. When we produce a document and share it with a group of individuals, the document is shared instead of being duplicated or transferred. This provides a decentralized distribution chain in which everyone has simultaneous access to the document. No one is locked out while waiting for changes from another party, and all changes to the document are recorded in real-time, making them entirely transparent.
To explain further here are some quick points which might help.
- A blockchain is a database that holds encrypted data blocks and links them together to build a chronological single-source of truth for the information.
- Instead of being duplicated or moved, digital assets are distributed, producing an immutable record of the asset.
- The asset is decentralized, giving public access in real-time and transparency.
- The integrity of the document is preserved via a transparent record of changes, which builds trust in the asset.
- The inherent security features of blockchain and its public ledger make it an ideal technology for practically every industry.