How does blockchain work? 

Blockchain came into existence in 2009 as the original source code for Bitcoin. Initially associated with cryptocurrency, over the last five years businesses and industries have started to recognise the potential of blockchain technology.

Put simply, blockchain is a central database of records which are linked and secured using cryptography. It’s a digital ledger in which transactions - financial and otherwise - are recorded and processed securely and permanently, accessible only by those with access to the ledger.

Each transaction is configured into a block containing the details of the buyer, seller and the transaction. The block is then added to a chain, which records all transactions in a central, digital ledger. Buyers and sellers do not need to hold digital currency to complete a transaction through blockchain; instead, digital currency acts as a token within the process to ensure secure and instant transmission of the payment through the network.

Blockchains can be either private or public. Private blockchain platforms can be used within a company for non-payment tasks, such as tracking supply chain shipments around the world.