A blockchain is a virtual, public ledger that records everything securely and transparently. It acts as a ledger, which can capture information about suppliers, partners, customers, goods, services, money, or any type of structured (or unstructured) data.

Blockchain brings two important advancements to data management: data is recorded and digitally signed; and then shared through a broad network. While simple, these two innovations allow for fast, precise, and transparent exchanges with revolutionary possibilities.

Here’s how it works: once data has been recorded inside a blockchain, it becomes connected to the data in front of and behind it. This makes it (essentially) impossible change, meaning that data can only be added (appended) to the network. The data is then shared with many (or all) of the other peers in the network. Instead of using a central entity to manage the chain, blockchains use peer-to-peer networks further securing the irreversible, permanent chain, and preventing any block from being altered. When someone joins the network, they get a full copy of the chain.

So what happens when someone creates a new block? That block is sent to everyone on the network. As each transaction occurs, it’s encoded into a block of digital data and uniquely signed or identified. Each node can verify the block to ensure it hasn’t been tampered with.

In layman’s terms, blockchain is a record-keeping tool that makes it easier and safer for businesses to work together over the internet. This data is then held in a network of computers, owned and run by the users themselves.