The blockchain explained, that the technology behind cryptocurrencies like Bitcoin, can be used for a wide range of applications in industries as diverse as banking and shipping to genomics and music publishing. The technology is an immutable record-keeper that reduces the need for third parties by allowing participants to share, verify and manage data securely.

A blockchain is a distributed network of computers that are constantly checking and verifying the data it contains. These computers use programs to generate string-of-numbers and letters codes, called hashes, to encrypt files, and then chain them together. Every computer in the network then compares the new hashed file to the previous one to see if it matches. If it does, the block is added to the chain and a permanent link to the previous block is created. This process prevents any block from being tampered with without altering all subsequent blocks.

The Blockchain Explained: A Beginner’s Guide to Blockchain Technology

When a block is added to the chain, its hash and transaction information are recorded in the ledger, which is then shared in real time across the network, providing visibility to all participants. This allows for fast, secure, and cost-efficient transactions. In the case of a letter-of-credit trade, a blockchain could cut a typical ten-day delay to just four hours.

Some of the earliest blockchain adopters are financial services companies, but other multibillion-dollar enterprises in a wide array of industries are also testing the tech, including automobile makers, retail giants, and food manufacturers. Web browser company Brave, for instance, uses blockchain to verify when users read online content and then pay them micropayments, reducing reliance on ads and eliminating middlemen.