Word of the Day: blockchain

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Word of the Day Daily updates on the latest technology terms | August 29, 2019 blockchain Blockchain is a type of distributed ledger for maintaining a permanent and tamper-proof record of transactional data. A blockchain functions as a decentralized database that is managed by computers belonging to a peer-to-peer (P2P) network. Each of the computers in the distributed network maintains a copy of the ledger to prevent a single point of failure (SPOF) and all copies are updated and validated simultaneously. In the past, blockchains were commonly associated with digital currencies such as Bitcoin, or alternate versions of Bitcoin like Bitcoin Cash. Today, blockchain applications are being explored in many industries as a secure and cost-effective way to create and manage a distributed database and maintain records for digital transactions of all types. How blockchain works A blockchain ledger consists of two types of records, individual transactions and blocks. The first block consists of a header and data that pertains to transactions taking place within a set time period. The block's timestamp is used to help create an alphanumeric string called a hash. After the first block has been created, each subsequent block in the ledger uses the previous block's hash to calculate its own hash. Before a new block can be added to the chain, its authenticity must be verified by a computational process called validation or consensus. At this point in the blockchain process, a majority of nodes in the network must agree the new block's hash has been calculated correctly. Consensus ensures that all copies of the distributed ledger share the same state. Once a block has been added, it can be referenced in subsequent blocks, but it cannot be changed. If someone attempts to swap out a block, the hashes for previous and subsequent blocks will also change and disrupt the ledger's shared state. When consensus is no longer possible, other computers in the network are aware that a problem has occurred and no new blocks will be added to the chain until the problem is solved. Typically, the block causing the error will be discarded and the consensus process will be repeated. Continue reading... Quote of the Day "While the underlying technology and architecture are important, these are changing rapidly and most blockchain solutions are likely to undergo a change in their technology before they become mainstream." - Jeff Stollman Related Terms distributed ledger transactional data peer-to-peer cryptocurrency Bitcoin blockchain economy Learning Center 4 key blockchain in supply chain use cases and examples The list of potential blockchain in supply chain use cases is long. Learn about some real-life examples where companies are putting that speculation to the test. 7 steps to implementing blockchain in the supply chain As experts hype the promise of using blockchain in the supply chain, organizations must approach the technology strategically. Learn the seven key steps to getting an implementation right. Blockchain terminology: 7 key blockchain storage terms Although blockchain storage is based on some basic technology, blockchain terminology can be confusing. Find out what distributed ledger technology, shards and farmers are as we explore the lexicon of blockchain storage. 5 potential benefits of blockchain in supply chain logistics Blockchain in supply chain logistics may offer increased transparency and quality assurance, among other benefits. Here's what suppliers, manufacturers, distributors and retailers need to know. 6 potential blockchain limitations for enterprise use Blockchain is framed as an exciting, even revolutionary technology. And in many ways, it is. But to appreciate its use for the enterprise, it is important to understand its shortcomings. Here are six blockchain limitations. Quiz Yourself The new regulation could cost employers _________ in compliance-related costs. a. $12 billion b. twelve billion dollars Answer Stay in Touch For feedback about any of our definitions or to suggest a new definition, please contact me at: mrouse@techtarget.com Visit the Word of the Day Archives and catch up on what you've missed! FOLLOW US About This E-Newsletter The Word of the Day is published by TechTarget, Inc., 275 Grove Street, Newton, Massachusetts, 02466 US. Click to: Unsubscribe. You are receiving this email because you are a member of TechTarget. When you access content from this email, your information may be shared with the sponsors or future sponsors of that content and with our Partners, see up-to-date Partners List, as described in our Privacy Policy. For additional information, please contact: webmaster@techtarget.com. © 2019 TechTarget, Inc. all rights reserved. Designated trademarks, brands, logos, and service marks are the property of their respective owners. Privacy Policy | Partners List