The definition according to IBM is “a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network.” This is the world’s bank account that everyone can access, meaning all network participants have access to the distributed ledger and its immutable record of transactions. Even though it is a public ledger no participant can change or tamper with a transaction after it’s been recorded to the shared ledger.
Sending assets through the Blockchain
When I say “assets” I mean anything tangible or intangible that carries value, whether that be a house (tangible) or intellectual property (intangible). Once you create a transaction, it goes into a data block. This data block holds all the information that is included in the transaction (When, What, Who, Where, Why). Once your transaction is confirmed it connects to the data block that was created before itself. That process continues, thus creating an irreversible chain. Hence the word “Blockchain”.
Why use this to transfer assets?
Using a blockchain allows greater security of your assets. A consensus mechanism is used to confirm transactions which means that members of the network confirm that all transactions are valid. Once the information is recorded, no one can delete this information. Not even system administrators.