A blockchain (or distributed ledger) is essentially a massive, ever-growing ledger in which all blockchain transactions are recorded.
Each block in the chain is chronologically connected to previous blocks and synched with the network nodes. This means that changing the data in one block would mean having to reverse all previous blocks before it, making it very hard to tamper with–very hard, although not entirely impossible.
The Labz uses a blockchain to store creators’ ownership rights. Ownership percentages for works created with The Labz are stored in a private blockchain to allow musicians to decide who to share their information with. The blockchain technology is built upon the Ethereum network for the most cutting edge and stable platform available. Blocks store splits and other information and are cryptographically signed and immutable, meaning the data can’t be changed or tampered with. The dependability of blockchain cryptography gives creators powerful evidence in ownership that can be used as evidence in court.
To get a concise sense of the nature of blockchain and what blockchain offers, check out this explainer video below:
So How Does It Work?
The data sent to each block on the distributed ledger is based on encrypted Merkle Trees, which is a technical way of saying that no fraudulent transactions can be recorded. If any transaction that does not follow protocol rules is detected by the network nodes, it is expelled immediately. This inherently secure nature of distributed blockchain technology means that it prevents damage to the entire blockchain shared database and can cut off a hacking attempt at one block.
The most well-known blockchain is that of the Bitcoin network where every transaction (that follows the protocol) is recorded and included in a block. Once a transaction is broadcasted to the network and confirmed by miners, the action cannot be reversed, nor can it be tampered with in any way. The same is true of Ethereum, which is responsible for smart contract technology.
These public blockchains are global and decentralized, visible to all. While many believe blockchains to be a system of record, they are not actually an effective means of storage, but verification. Simply put, blockchains ensure that everyone is on the same page and no single person can change the ledger for anyone else–if they did, the network would reject the attempt.