❓What is the Blockchain?

Some definitions...

Let’s be scholars for a minute and have a look at some definitions:

A Blockchain is an ever-growing distributed data record. In simple terms: it shares information among stakeholders. It is a database, maintained by independent parties, that saves each transaction occurring on the network. New data is added to the chain as a block — a “block” simply referring to a group of transactions (e.g. “Alice sends 5 tokens to Bob” is one transaction).The technology provides trust through immutability, meaning no single actor can hack the network or change the past information it contains. This infallible security explains the growing popularity of blockchains.Use cases are not restricted to the financial sector. The significant innovation created is the ability to share information in real-time. Many industries can benefit from this. Think of supply chains for instance. But thanks to the built-in trust, blockchains can also perform financial transactions. The Bitcoin one, for example, contains a record of every time someone sends or receives bitcoins.

Cryptocurrencies make it possible to transfer value online without the need for a middleman like a bank or credit card company. Defined as digital assets that work as a medium of exchange, they orchestrate the process of verifying transactions by providing incentives to maintainers of the network. In addition to that, cryptocurrencies can be used by dApps — decentralized apps, or apps built on top of the blockchain — to monetize their growth and distribute back some of their created value to users. In this latter case, the tokens are similar to traditional public company shares in some aspects.

DeFi refers to financial services built on a blockchain. They rely on the promise of cheaper, more transparent, and faster financial transactions relative to traditional service providers like banks. For example, they enable international money transfer in real-time at virtually 0 costs, as opposed to taking 2–5 business days and a 5% fee or more with the current financial system in use.At its core, DeFi redefines how financial companies generate revenues and interact with stakeholders.