What is Blockchain? and How Does a Blockchain Work?

How Does a Blockchain Work?

Here, we will see the benefits of Blockchain in supply chain management.

What is Blockchain?

It is a distributed database which is shared among computer network nodes. It stores information in a digital format. It plays a vital role in cryptocurrency systems like Bitcoin, where they keep a secure and decentralized record of transactions. It ensures the security of a data record and generates trust without the need for a trusted third party. Join FITA Academy for the best Blockchain Course in Chennai.

Why Blockchain?

A database typically organizes its data into tables, whereas a blockchain, as the name suggests, organizes its data into chunks (blocks) that are linked together. The data structure creates an irreversible data timeline. It receives an exact timestamp when a block is added to the chain.

It is a type of shared database that differs from traditional databases in the way data is stored; this technology store data in blocks that are then linked together using cryptography.

How Does a Blockchain Work?

It enables digital information to be recorded and distributed but not edited. It serves as the foundation for immutable ledgers or records of transactions that cannot be changed, deleted, or destroyed. It is also known as distributed ledger technologies (DLT). Blockchain was established in 1991 and has grown exponentially. It has various cryptocurrencies, non-fundable tokens and smart contracts. Blockchain Technology Courses in Chennai will be your career-establishing course.

Blockchain Decentralization:

If a single user interferes with Bitcoin’s transaction record, all other nodes will cross-reference and easily identify the node with incorrect information. This system aids in the establishment of an exact and transparent sequence of events, and no single node in the network can change the data stored within it.

The cryptocurrency transactions data are irreversible. A Blockchain could also hold various information, such as legal contracts, state identifications, or a company’s product inventory.


It has decentralized nature, and all transactions can be transparently viewed by having a personal node or using blockchain explorers, which enable each person to see transactions taking place in real-time. Every node maintains its copy of the chain, which is updated as new blocks are confirmed and added.

Blockchains are a disruptive force in the finance sector, particularly in payment and banking. 


As we discussed, How Does a Blockchain Work? So, to have a better understanding of Blockchain, you can join Blockchain Training in Chennai and equip yourself with its benefits, concepts, and other concepts.