The blockchain represents a distributed ledger that records and verifies transactions, and groups them in blocks. The blockchain technology allows virtual strangers to exchange value and at the same time makes the transaction process transparent and safe.
Initially the blockchain was launched as alternative to payments but current developments in the industry show that there are unlimited ways in which the blockchain technology can be applied in different industries. Three main blockchain types can be distinguished – distributed, centralized and decentralised (based on hubs). In general, the distributed (public) blockchain is a mechanism of trust between peers making a transaction. It represents a public register and is owned by the peers in the community (network). The process is based on complex mathemathic algorithm.
Blockchain can be developed in a way to provide different layers of security and to connect either identical devices or devices with different components, and therefore to facilitate different uses.
A blockchain can be developed and implemented for the needs of financial institutions in a way that allows the data to be owned by the central entity like a bank. This is called a centralised (private) blockchain. Contrary, in the decentralised blockchain based on hubs, ownership is shared by a restricted group of hubs. •
Source - www.onelife.eu