What Is a Blockchain?
A blockchain is a digital ledger maintained across a network of computers. It stores transactions or other data in blocks linked using cryptographic hashes.
How Does It Work?
- Participants submit transactions to the network.
- The network checks transactions and uses a consensus mechanism to agree on ledger updates.
- New blocks are added to the chain, and participating nodes update their records.
Why Does It Matter?
Blockchains support cryptocurrencies, smart contracts and shared recordkeeping. Depending on their design, they can improve transparency and reduce reliance on a single administrator.
Key Considerations
Blockchains can be public or permissioned. Their security, speed and fees vary. Confirmed records are difficult to change, but a blockchain does not automatically guarantee that submitted data is accurate.