Blockchain is an innovative technology that uses cryptography and a distributed database to create tamper-resistant records called “blocks” that can be linked together in a “chain.” Blockchains are also known as “distributed ledgers” because there is a copy of the ledger on each participant’s computer, and all copies of the ledger must agree before any new transaction can be added to the chain. Blockchain has great potential for industries such as finance, health care, and online gaming where transparency and trust are critical. It can bring security, cost savings, and higher speed to supply chains around the world.

Blockchains are append only, meaning that once new data is added to the chain, it cannot be modified or removed after the fact. Databases, however, can easily change their data and history. Because blockchains are append-only and decentralized, they are much more difficult to hack or modify than a database. As there is no central server or owner of a blockchain, the amount of effort it would take to compromise even half of a blockchain’s nodes would be astronomical.