What technology uses a distributed, decentralized ledger to record transactions across multiple computers, making records difficult to alter retroactively?

Question

Accepted Answer

Blockchain. Blockchain technology uses a distributed, decentralized ledger to record transactions across multiple computers in a network. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data, creating a chain that makes retroactive alteration extremely difficult without changing all subsequent blocks and gaining network consensus. Originally developed for Bitcoin, blockchain has applications in supply chain management, healthcare records, and smart contracts.

Cloud computing delivers computing resources over the internet on demand, providing scalable infrastructure without requiring local hardware - it is a service delivery model, not a transaction recording technology. Virtual reality creates immersive, computer-generated environments that simulate physical presence in real or imagined worlds using headsets and controllers - it is a user experience technology unrelated to transaction recording. The Internet of Things (IoT) refers to the network of physical devices embedded with sensors, software, and connectivity that enables them to collect and exchange data - while IoT devices can generate data that might be recorded on a blockchain, IoT itself is not the ledger technology.

Emerging technologies are tested on the CLEP exam to ensure students are aware of current trends in information systems. Students should understand the basic concepts behind blockchain, AI, IoT, cloud computing, and other transformative technologies, including their potential business applications and implications.

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