I have a question

Blockchain is a database that can be shared across a network, between various locations and computers, on a peer-to-peer basis.

That’s right. Sharing data directly between multiple parties removes the need for an intermediary – a server, a bank or similar body. The crucial difference here is the idea of a distributed ledger. In conventional databases, centralised authorities are required to track, verify and record all transactions within the network. And you have to believe in them. But not with blockchain.

A distributed ledger – the record of data and transactions that everyone can see – greatly enhances trust, transparency and security for all blockchain participants.

Blockchain takes security to a new level because its ledger cannot be controlled or altered by a central authority (there isn’t one) or by any one network participant (they all have to agree). Your assurance comes from blockchain technology rather than trusting one particular agency. As for transparency, every participant receives a fresh copy of the ledger when it is updated by new transactions. Add the fact that blockchain uses sophisticated public key encryption, and you have a system that is extremely difficult to hack, corrupt or steal from.

Correct – for many transactions we’re talking seconds rather than, in the case of banks for example, days. Removal of a central mediator also brings costs way down.

For sure. Businesses and organisations in virtually every field are fast discovering how blockchain can deliver vast savings by improving operational efficiency and generating value through new business models.