Think of it like the telephone call method. A conversation is started, but as the conversation passes by the line of people and it is being told (processes), its meaning (nodes) changes, but each one involved remembers what they heard and said to and from the person next to them.
But if something were to be said differently from the start, then this whole meaning would have its own meaning. So, if something in the middle drastically and intentionally changes from what was said by the receiver, then this link or story (“node”) would break.
What is recorded in someone else’s ear is called the “ledger.” All this is done digitally. And because this is done online, this becomes transparent for the public, particularly to all participants.
It keeps everyone connected through the nodes but also records publicly available information and peer-to-peer without needing a middle-man person.
4 Common Types of Blockchain?
Public Blockchain(no central authority).
Anyone in the network can participate.
Private Blockchain (controlled by one authority).
Centralized; therefore, only those selected can participate in the process.
Hybrid Blockchain (controlled by the permissionless process).
A mixture of both centralized and decentralized parts of the product or system.
Consortium Blockchain (controlled by group).
Just the group or organization has access to its own centralized process.
Four different Examples in Different Industries?
- Legal via contracts by digitally signing and storing these documents.
- Healthcare via health records.
- Finance via crypto exchanges.
- Customer service industry via payments and, for the most part, play in many industries like all the examples above.
Final Thoughts:
Blockchain is online – the only difference is whether you want transparency or not.
Or you can see it from -the difference is whether you (an organization or institution) are transparent or not.
Is it transparent, or is it kept others in the dark and on the private side? Sometimes it is best to keep things private, but other times it is best to be kept in sight for everyone to see.
Of course, each has cons and pros, depending on what works best for what is being recorded and interacted with.
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Readers are encouraged to do their own research and consult with a licensed financial advisor before making any investment decisions. The author is not a licensed financial advisor and does not provide personalized financial advice or recommendations. Any reliance on the information provided in this blog is at the reader’s own risk.
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