Blockchain technology is the series of immutable data managed by distributed computer operating systems using the cryptographic principles. The network does not have a centralized authority – it is transparent enough to allow every user engaged to be accountable for their operations. It is a safe and automated way of data transmission from one network node to another. The sender initiates the transaction by creating a block that has to be verified by distributed computers. Once verified, the block includes a chain with a unique history and records. The block contains details such as time, date of transaction, participants, and transaction position. The information stored in one block makes it distinguishable from the rest. Every new block added to the chain is made publicly visible to other users for review. A blockchain does not have a single event that can be vulnerable for manipulation; instead, causing interference would mean manipulating every block in the network. Therefore, security is guaranteed through archival storage.
E-commerce platforms like Amazon apply blockchain technology for customer placement of orders. Once a customer makes an order, its properties such as user id, item, amount, and height (numerical rank) are updated automatically. In case an intruder tries to manipulate single transactions, its properties change, which will consequently change its height and thus moving to a different position in the blockchain. Therefore, it means that a hacker would need to manipulate all the blocks that come after it to manipulate the chain successfully. As the information changes, the original block remains unaltered.
Another example is Facebook status functionality. The newest post is updated into the blockchain and made publicly visible to the relevant users. The latest post is pushed to the end of the chain, thus making it the first to be viewed. Any attempt to alter any block in the chain affects the next block and so on.
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