Technology Operations

A blockchain is a decentralised data-ledger technology. That is, there is no central database, rather databases are held by multiple computers, each with an identical copy of the data. The system is maintained by a network of computers, in which successive data (in blocks of records) are first validated through a network consensus approach, and then added to the ledger. Each block in the chain contains a set of transactions represented by a hexadecimal ‘fingerprint’ known as a ‘hash’. This hash is passed on to the next block, thus creating the chain of blocks (see Figure 1 below). This enables computers on the network to easily verify whether any data in a block has been tampered with since altering the data within a block would affect its hash. The computers (called ‘nodes’) that participate in the network receive a complete copy of the blockchain, and stand as proof of every transaction ever executed on that particular system. The mutually validating network of nodes protect the coherence and integrity of the network and in doing so, avoid the need to use intermediaries to centralise all the data.