Blockchain is described as a kind of database with built-in validation; however, its ledger is not stored in a master location or managed by anybody. Instead, it is distributed, existing on multiple computers simultaneously so that anyone who are interested in having a copy of it can easily do so. More noticeably, the block validation provides a security system in such a way that “old transactions are preserved forever and new transactions are added to the ledger irreversibly”. In other words, the data is immutable. As a result, it provides a wonderful benefit for FIS fraud detection and great help for not only auditors both internal and external but also financial regulators to generate useful analytics. Beyond financial sector, the system is also invaluable for “managing the provenance of assets, date-stamping events, geo-stamping those events in a specific location, establishing identity, and so on.” Nonetheless, as being a distributed nature, it requires constant computational power in many multiple locations, which could be a big challenge when volume and velocity of data increase quickly. With highly valuable potentials it brings, I believe that blockchain will soon become the norm for data records applied in many industries. There are already startups engaging in this blockchain-based cryptocurrency such as Bitcoin, Ethereum and Ripple.
Source: https://arstechnica.com/information-technology/2016/11/what-is-blockchain/