To understand the impact of blockchain technology, it’s important to understand what blockchain technology is. In a nutshell, blockchain technology is anything that runs on a blockchain. But what is the blockchain?
At the lowest level, a blockchain is a way of storing data created by Satoshi Nakamoto, the inventor of Bitcoin. It consists of a bunch of blocks chained together with cryptographic operations. The important thing to know about a block is that it contains a bunch of data, where each piece is signed by its creator so that it can’t be modified or faked without detection. The cryptographic chaining of blocks is accomplished using hash functions, which are mathematical functions where it is essentially impossible to find two inputs that produce the same output. Each block contains the output of hashing the previous block, meaning that it’s impossible to fake a block in the chain in a way that won’t be obvious based on the following blocks in the chain.