If you follow tech news, you've likely read the words "blockchain," "cryptocurrency," and "Bitcoin" in headlines on a weekly, perhaps daily, basis. It seems the whole world is talking about Blockchain - from its innovative design (decentralized and distributed ledgers), to its implementations (the cryptocurrency Bitcoin being the most popular), to its possibilities (such as transforming medical recordkeeping). There's so much talk about Blockchain technology that it's easy to get lost in the conversation. So let's start with square one - What is blockchain technology?

Simply put, it is a mechanism for storing and validating large amounts of data. It allows individuals to create a trust-based relationship without the assistance of an arbiter or a trusted third party. This trust enables individuals across the globe to transact near instantaneously at any scale with confidence.

The data is stored in a distributed manner, meaning it is spread across many nodes. Think of a node as a computer that is always on and is running blockchain-specific software. These nodes have a job - they are running so they can validate blocks and then add them to the blockchain.

Think of a block as a cell in a spreadsheet or a safety deposit box containing multiple documents. It is simply a container used to store information. Each block contains a reference to the previous block. This allows the nodes to independently verify the authenticity of the data. Because each node has an exact copy of the blockchain, any time a new block is added to the chain, the nodes need to agree that their copy of the blockchain matches everyone else’s copy. Nodes have a mechanism that allows them to come to consensus and detect any erroneous transactions. If an invalid block is detected, it will be discarded and the chain will continue on without it.

Once the data is added to a block and the block is appended to the chain, the data becomes unalterable. Each block contains data in the form of transactions and these blocks record the history of the network. They track and log the movement of assets on the network from peer-to-peer.

While this is a simplified version of how a blockchain functions, it gives us enough details for a basic understanding and will allow us to move on to a wider range of topics. To recap, a blockchain is an immutable sequential chain of data that is spread across many nodes to ensure accurate, consistent and redundant data storage. The robust nature of this system allows it to scale and potentially transform the way we conduct business around the world by enabling new and more efficient methods of interacting with peers. This new technology will start a transition to a new paradigm, where we are no longer reliant on a centralized party to supervise peer-to-peer transactions. This will not only save individuals time and money, but place the power back where it belongs - with the individual.