I just went back and read about Blockchain again, and I feel that many people still misunderstand it. Let me explain what the basic technology of blockchain consists of.

Actually, Blockchain isn’t as complicated as people think. It’s simply a data storage system that doesn’t require intermediaries—highly secure and highly trustworthy. Its name comes from the fact that the blocks (Block) that store data are linked together into a long chain (Chain).

When it comes to the underlying structure, there are three important parts you need to know:

First is the hash code (Hash) — each block has an identity code like our fingerprints. No two blocks are the same. If someone tries to alter the data in a block, the hash code changes immediately, letting everyone know that there has been tampering.

Second is the stored data — like with Bitcoin, it records transactions: who sent, who received, and how many coins. Everything is stored in the block.

Third is the hash code of the previous block — this is what connects blocks into a chain. If someone tries to change an old block, they also have to change the next block, and the one after that, all the way until the present.

In addition, there’s a consensus system (Consensus) that makes it difficult to cheat. Bitcoin uses Proof-of-Work, which takes about 10 minutes to create a new block. If someone wants to hack it, they would need to modify the code of all the blocks in less time than it takes the system to create a new block—so it’s extremely unlikely.

There’s also the Peer-to-Peer (P2P) network — there’s no single intermediary that controls everything. Instead, there are many nodes (Node). Every node stores the full data, and every node checks and verifies each other’s information. To control the system, someone would need to control more than 51% of the nodes, which is almost impossible.

These three parts of blockchain basic technology work together, which is why it’s secure and trustworthy.

Nowadays, Blockchain has been adopted in many fields. Banks are experimenting with Thailand’s digital baht, and it uses this technology. Company IBM uses it in the supply chain so consumers can verify the origin of products. Even voting systems can use Blockchain, because it prevents cheating and ensures transparency.

However, there are limitations. Blockchain still can’t handle large amounts of data (Scalability), and it consumes a lot of electricity. On top of that, there hasn’t yet been serious regulation from any authority. But since this technology continues to evolve, these issues may be solved in the near future.

In summary, Blockchain is a secure, transparent technology with no intermediaries. Once you understand how it works, you’ll see that it isn’t as difficult as you might think.