What is Blockchain?

In the previous blog, we discussed Web 3. In the second part of the Athena Blog series, we will discuss a critical component of Web 3: blockchain!?

You most likely understand databases, such as spreadsheets. They store information.?

Blockchain is a distributed database or ledger (record of transactions) technology that stores data. The key word here is distributed, meaning that multiple copies of the same data set can be saved on different machines, or nodes, of the blockchain.?

It is most known for its critical role in powering cryptocurrency systems. However, they can and will continue to be used by other industries and businesses that require data keeping: medical industries, supply chains, etc.?

Why should we use the blockchain??

Why is blockchain advantageous?

Let's break it down:

• Open and Verifiable: anyone can view the data on the blockchain and verify it. The verifiable transactions on a blockchain makes it possible for financial transactions to take place on it without the need for a third party verification service.?
• Immutable: the data on the blockchain is unchangeable, thus adding to its legitimacy. When people verify the data on the blockchain, they can rest assured that it has not been tampered with and is final.
• Eliminates necessity of a centralised authority: As mentioned before, the open, verifiable and immutable nature of the blockchain allows transactions between several people or parties to happen without a third party. The data of the transactions that have taken place on the blockchain are final. Blockchain makes true peer-to-peer transactions possible.?
• Used to Create a Decentralised System: Because the third party is eliminated, blockchain opens the possibilites for a decentralised system to take place. A central third party is no longer needed.
• Used to Create a Trustless System: Under a decentralised system, participants are able to reach certain conclusions or consensus without the need to “trust” a third party.?

As you can see, the benefits of using blockchain technology can build on top of each other and ultimately create a trustless and decentralised ecosystem.?

Now, to what extent that such a system using blockchain remains trustless and decentralised is another matter that Obol has been very focused on. More on this and deeper dives into the concepts of decentralisation and trustlessness in future blogs!