Blockchain can be described as a shared database. It is a decentralized ledger which records credit and debit transactions between two parties. Credit and debit transactions are verified in the database by miners. This is called confirming the transaction.
A set amount of transactions are then released every set amount of time. Miners receive an award for confirming transactions. When a transaction is confirmed, it is recorded by every miner and node. This helps to make blockchain incredibly secure. Fintech companies and organizations create their own blockchains for financial systems, such as bitcoin. These systems are effective because of programmable monetary policy and speed of transactions, along with a host of other benefits.
There are a few issues in the blockchain environment such as KYC/AML compliance and cost per user acquisition, however, this technology is being used and invested in many industries such as:
- Real estate
- Many others
Entrepreneurs and technologists researching blockchain are on path to improve a lot of everyday problems. $1 Billion was invested in this technology space in 2016.