What is blockchain?

Let’s take a more in-depth look at what blockchain really is. An asset consists of anything that is capable of being owned or controlled to produce value. The assets are the protagonists of this network, and can include tangible assets such as cars, houses, or money. They can also include intangible assets such as copyrights and patents. If the assets are the protagonist, then the ledger is the key. The ledger is a business's system of records. Businesses will have multiple ledgers for multiple business networks in which they participate.

The following diagram represents the status quo for business networks. Each participant keeps their own ledger(s), which are updated to represent business transactions as they occur:

With blockchain technology, members of a business network share a ledger that is updated every time a transaction occurs through peer-to-peer replication, as depicted in the following diagram:

Blockchain allows multiple competing parties to securely interact...