In its most basic form, blockchain is a digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.

How Does Blockchain Work?

Envision a spreadsheet that is duplicated thousands of times across a network of computers. Then imagine that this network is designed so that each cell within the spreadsheet updates on its own and the entire spreadsheet reconciles simultaneously. That is a basic understanding of blockchain.

Information held on a blockchain exists as a shared — and continually reconciled — database. This is a way of using the network that has obvious benefits. The blockchain database isn’t stored in any single location, meaning the records it keeps are truly public and easily verifiable.