Blockchain. Explained
If you’ve got questions about blockchain, this is the place to get answers.
A distributed digital ledger that securely records transactions across multiple computers.
A decentralised digital ledger that securely records and verifies transactions across a network. Once added, transactions are permanent and immutable, guaranteeing data integrity and minimising fraud risk.
What is blockchain?
A blockchain is, at root, a kind of database. It stores information in a way that makes it very hard to change or delete. Instead of all the data being kept in one place, it’s shared across many computers around the world. Each new piece of information added to the database is grouped into a ‘block’, and once a block is full, it’s linked to the one before it – a chain. This approach helps make sure that everyone a) with access sees the same data and b) can trust that it hasn’t been tampered with.
- A blockchain is a type of database.
- The data is kept on many computers around the world, not in one place.
- Each new piece of information is grouped into a ‘block’, then linked to the one before it – the ‘chain’.
- Blockchain is a distributed ledger that ensures transparency, immutability, and trust across digital networks.
- Transactions on the blockchain are permanent and tamper-proof, strengthening security and preventing fraud.
- Blockchain enhances security, privacy, and regulatory compliance for businesses operating at scale.
How blockchains work
Blockchains work by recording information in small batches called blocks. Each block is checked and added to the chain by many different computers or nodes on the network. This can only happen if all the machines on the network agree the information is correct.
Once a block is added, it’s locked in place and can’t be changed. This process makes sure that everyone using the blockchain sees the same, trustworthy record of events, whether it is money sent or data stored. Because of this underlying trust, the technology can become practical for many real world uses.
What’s the difference between blockchain and bitcoin?
Simply put: blockchain is the technology that makes digital money like Bitcoin possible. In this case, think of the blockchain as the road, and Bitcoin as one of the cars driving on it. The blockchain keeps track of every Bitcoin transaction, making sure everything is correct and can’t be changed.Blockhain is the underlying technology although there are now various different offshoots which aim to tackle different use cases.
The power of a distributed system
Those many computers storing data around the world, rather than in one place, means the blockchain benefits from distribution and decentralisation – no single person or group controls everything.
This makes the system more secure and trustworthy, because there’s no central point that can be hacked or shut down. It also means that everyone has access to the same information, and no one can secretly change the records. This is one of the main reasons people turn to blockchain: it helps create a fair and open way to share and store data
- No single person or group controls a blockchain
- No central point makes the overall system safer
- Everyone has access to the same information
- Blockchain is a distributed ledger that ensures transparency, immutability, and trust across digital networks.
- Transactions on the blockchain are permanent and tamper-proof, strengthening security and preventing fraud.
- Blockchain enhances security, privacy, and regulatory compliance for businesses operating at scale.
