What Is Blockchain?
Blockchain is a decentralized, distributed digital ledger that records data across multiple computers in a secure, transparent, and immutable way.
Definition
Blockchain is a shared digital database, also known as a distributed ledger, that stores information across a network of computers rather than in a single centralized location. Once data is recorded on a blockchain, it cannot be altered or deleted without network consensus.
The technology enables secure recordkeeping without relying on a central authority, making the data resistant to tampering and single points of failure.
How It Works
Blockchain data is grouped into blocks that are linked together chronologically. Each block contains transaction data, a timestamp, and a cryptographic reference to the previous block.
Copies of the blockchain are maintained across many network nodes. New data is added only when the network agrees through consensus mechanisms such as proof of work or proof of stake.
Why the Term Matters
Blockchain provides a foundation for transparent and tamper-resistant recordkeeping. It explains how digital systems can establish trust, security, and verification without intermediaries.
The concept underpins cryptocurrencies and has broader relevance for secure data storage, transaction records, and digital ownership.
Related Concepts
- Distributed ledger technology (DLT)
- Decentralization
- Cryptographic hash
- Proof of work
- Proof of stake
- Smart contracts
FAQs
What is blockchain?
Blockchain is a distributed digital ledger that records data securely across multiple computers.
Why is blockchain considered immutable?
Blockchain is immutable because recorded data cannot be changed without altering all subsequent blocks and gaining network consensus.
What is decentralization in blockchain?
Decentralization means data is shared across many nodes instead of being controlled by a single entity.
How is blockchain data secured?
Blockchain data is secured using cryptographic hashes, timestamps, and consensus mechanisms.
Is blockchain only used for cryptocurrency?
No, blockchain can store many types of data, including transactions, contracts, and digital records.
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