How does blockchain work?

Unlike a traditional centralized computer database system, blockchain is decentralized and its records are distributed and maintained on many different computers at once. The records are called a “distributed ledger” and users have controlled access to one shared copy of the ledger.You can read All Article by Insurance Guide

 

As information is added, each new “block” of information is “chained” to the previous one in a permanent, unbreakable sequence using advanced cryptography. Before new blocks can be added to the ledger, they must be confirmed by different computers in the system, and unique keys are required to access individual blocks. If someone tries to access a block of information without a proper key, the system rejects the attempt and leaves evidence of tampering.

 

The terms “blockchain” and “distributed ledger technology” (DLT) are sometimes used interchangeably, but they aren’t the same thing. That is, blockchain is a type of distributed ledger, but not every distributed ledger is a blockchain. Similarly, while blockchain enables cryptocurrency, it is much more than cryptocurrency. Later in this ultimate guide, we’ll look at some examples of how insurers have leveraged blockchain to their benefit.