Understanding Blockchains

Andrew analyzes and writes about Microsoft's data management, business intelligence, and machine learning solutions, as well as aspects of licensing... more

A blockchain is a time-stamped data structure that can contain an entire history of transactions for a system and cannot be altered by any one individual. Blockchains are based on cryptographic tokens and algorithms and a peer-to-peer network so that the transaction history in the blockchain can be trusted without a centralized authority or clearinghouse approving or vouching for the transactions. In a blockchain deployment, copies of the blockchain are replicated across nodes and are assured to be consistent through consensus algorithms.

The Bitcoin cryptocurrency was the first major decentralized application (frequently called a “dapp”) based on blockchains. Blockchains are now being extended to support a new class of blockchain application called smart contracts that are increasingly used in financial and supply chain industries. Smart contracts enforce agreements automatically without the intervention of a central authority.

There are three main types of blockchain being created today:

Atlas Members have full access

Get access to this and thousands of other unbiased analyses, roadmaps, decision kits, infographics, reference guides, and more, all included with membership. Comprehensive access to the most in-depth and unbiased expertise for Microsoft enterprise decision-making is waiting.

Membership Options

Already have an account? Login Now