Blockchain can be conceptualized as a distributed ledger or database, shared and continuously updated across a network of interconnected computers, critical in cryptocurrency systems, where they maintain a secure and decentralized record of transactions. The potential applications of blockchain technology extend far beyond the realm of cryptocurrency.

Blockchain is able to render data immutable within any industry. Immutability, in this context, signifies the inability to alter or tamper with the data once it is recorded on the blockchain. This characteristic of immutability fosters a significant shift in trust models.

With traditional systems, trust often resides with third-party intermediaries, such as auditors, who can be costly and prone to human error. Blockchain technology disrupts this by only requiring trust at the point of data entry, eliminating the need for these intermediaries and streamlining processes.

Since the introduction of Bitcoin in 2009, blockchain technology has powered advancements in a variety of areas including cryptocurrencies, decentralized finance (DeFi) applications, non-fungible tokens (NFTs), and smart contracts.