The introduction of Bitcoin brought to the world the coveted innovation of Blockchain. In the process of solving the key issues associated with the decentralized currency system, the author introduced a tamper evident data structure that came to be known as Blockchain. Blockchain data structure is essentially a chain of data blocks linked together by cryptography (a branch of mathematics) that guarantees the integrity, traceability (of each data block) and tamper-evidence of the entire chain. The figure below depicts a conceptual view of a Blockchain data structure.
While Bitcoin and cryptocurrency entered into the common vocabulary; the major impact of Bitcoin that impacted a wide swath of applications was Blockchain. Blockchain, by allowing a mechanism to transfer value in a frictionless manner through technology based trust as opposed to the use of a known trusted party facilitated by cryptography.
The legal, economic, political and social systems function based upon transactions governed by written contracts and their records. Integrity of the transactions requires accuracy, tamper proofing and transparency. In spite of the digital revolution, systems that manage inter-organizational transactions are highly prone to errors, fraud and lack of transparency. Blockchain solves the problem through the concept of Smart Contracts and enabling guaranteed verifiability of transactions based on the Smart Contract using Blockchain properties of verifiability and traceability without the bureaucracy, inefficiency, inaccuracies of the existing systems.