In each blockchain you need a validation method for the nodes to agree on the rightfulness of the transactions. In decentralized blockchain systems, the most prominent model to do so is proof-of-work, which is also used by the bitcoin network. In this setup, transactions are validated by burning massive amounts of energy and computer power to ensure that the network agrees on which transactions to include. Because of this massive energy-commitment, proof-of-work is also a perfect way to make the ledger immutable, meaning that subsequent changes are extremely difficult to impossible.
You can learn more about blockchain and its applications to financial services in other videos here: https://financeunlocked.com/blockchain-1-4-key-concepts/
Igor is the author of “Blockchain Babel: The Crypto-Craze and the Challenge to Business.” The book was a Financial Times Book of the Month and a finalist in the Bracken Bower Prize. He has published more than 50 articles on blockchain and financial technology. Moreover, Igor is the Head of Marketing and Product Management for BNP Paribas Personal Finance in Austria.
You can find more of Igor Pejic’s videos here: https://financeunlocked.com/expert/igor-pejicfinanceunlocked-com/
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