If you’re interested in finance, you need to understand blockchain.

For the last 10 years or so, blockchain has been a major financial buzzword. It refers to the record-keeping technology that runs Bitcoin and is often explained a distributed, decentralised ledger. But what does that really mean?

Blockchain is all about storing digital information (blocks) in a public database (a chain). The blocks keep transactional information such as the date, time and amount of every payment, as well as who is making
the payment. A block is added to the blockchain when new data is added. This information then becomes publicly available.

Word on the financial street is that blockchain has the potential to be the most disruptive technological innovation since the internet. Down the line, it’s likely that every industry will be impacted by blockchain in one way or another. Despite this, there is great uncertainty as to what blockchain technology is all about, and what its true potential is.

To help accountants and professionals understand blockchain, UJ has launched two courses that explore its development. They also look into cryptography and hash function, distributed ledger technologies, and the difference between public and private block-chain. The courses are available to anyone who is interested in understanding and learning more about blockchain, and is run entirely online. Students can start whenever they wish.

HOW A BLOCKCHAIN WORKS*

First of all, what is a block?

What then?

In order for a block to be added to the blockchain, four things must happen:

The block is then added to the blockchain, and becomes publicly available for anyone to see.

Why does this matter?

Users can choose to connect their computers to the blockchain network. This means that there are thousands – even millions – of copies of the same blockchain. As a result, information is more difficult to manipulate and impossible to delete. Blockchain is therefore accurate, transparent and secure.

*Source: Investopedia

HOW A BLOCKCHAIN WORKS*

First of all, what is a block?

A block is a digital piece of information

Every block is distinguishable from the other

A single block can store thousands of transactions

It also keeps information about who is involved in the transaction

It stores information such as the date, time and amount of a transaction

What then?

In order for a block to be added to the blockchain, four things must happen:

A transaction must take place

The transaction must be verified

The transaction is stored in a block

The block must be given a hash, a unique identifying code

The block is then added to the blockchain, and becomes publicly available for anyone to see.

Why does this matter?

Users can choose to connect their computers to the blockchain network. This means that there are thousands – even millions – of copies of the same blockchain. As a result, information is more difficult to manipulate and impossible to delete. Blockchain is therefore accurate, transparent and secure.

*Source: Investopedia

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