At the heart of the appeal and functionality of Bitcoin and other cryptocurrencies is blockchain technology. As the name implies, the blockchain is essentially a series of interconnected blocks or an online ledger. Each block contains a series of transactions that have been independently verified by each member of the network. Each newly created block must be verified by each node before it is confirmed, making it nearly impossible to falsify the transaction history. The contents of the online ledger must be confirmed by the entire network of a single node or computer that maintains a copy of the ledger.
According to experts, blockchain technology can be used in a variety of industries, including supply chain and processes such as online voting and crowdfunding. Financial institutions such as JPMorgan Chase & Co (JPM) are testing the use of blockchain technology to reduce transaction costs and streamline payment processing.
