Blockchain is a shared network that effectively tracks transactions and assets in the virtual world. It is a highly reliable and cost-effective method of recording basically anything of value in the information system.
Only secured network members have access to this data. It tracks information end to end making it impossible to duplicate, replicate or forge.
Each transaction or exchange that occurs is recorded as a ‘block’. Now these individual blocks form a chain as and when the record keeps increasing, meaning as the asset keeps shifting with each transaction it is recorded like a chain to track its movements.
Each block is securely linked together as evident in the above image to track its progress without any alterations whatsoever. This irreversible chain is called the blockchain.
Cryptocurrency uses blockchain as its transaction system or ledger. Considering that digital currencies are unregulated transactional mediums, blockchain provides a safe and secure method for people to trust and transact in the virtual world.