Blockchain is also known as distributed ledger technology (DLT), a digital system that records asset transactions and their details in multiple locations simultaneously. Blockchains are building blocks of interactions and transfers. These blocks can be assets of any digital kind, for example, money, securities, land titles, information on identity, health and other personal data. blockchain is accessible to all relevant parties by employing a triple-entry bookkeeping model. This means all stakeholders – accountant, auditor, client, regulator – will have an identical copy of the ledger at all times, shared across a peer-to-peer network of nodes (computers) spread across multiple sites. To alter information in the ledger requires the permission of everyone involved, which means information on the blockchain can be accurately relied upon. And the security is bullet proof as blockchain technology utilises cryptography to secure information, and private and public keys to authenticate users.
Because all entries in a blockchain are distributed and cryptographically sealed, it is virtually impossible to destroy or manipulate information, preventing people from being able to ‘cook the books’ or conduct other forms of financial fraud. Blockchain records are often referred to as immutable – unable to be changed.
A smart contract is a computer protocol that runs on top of a blockchain. It sets rules for contracts and enforces agreements once the rules are met.
Triple entry adds a third layer or entry – all transactions and involved parties are written on the blockchain and the information is shared with everyone involved.