ITGSS Certified Technical Associate: Emerging Tech Practice Test

Blockchain is best defined as a distributed database that securely records transactions. This technology operates using a network of computers (often referred to as nodes) that work together to validate and record transactions in a way that ensures transparency and security. Each transaction is compiled into a block, which is then linked to the previous block, creating a chronological chain. This structure makes it very difficult to alter any information once it has been recorded, as it would require changing every subsequent block in the chain across all distributed copies of the database. The essence of blockchain lies in its decentralization, meaning that no single entity has control over the entire database. This reduces the risk of fraud and enhances security since the data is replicated across multiple locations, eliminating a single point of failure. The use of cryptographic techniques further ensures that the records are secure and tamper-proof. While decentralized databases can be utilized for various applications, including cryptocurrencies, they aren't restricted to financial transactions alone, making the definition of a distributed database that securely records transactions accurate and comprehensive.