What is a Blockchain?
A blockchain is a distributed database or ledger shared among computer network nodes. It stores information electronically in digital format, with each group of transactions forming a "block" that is linked to previous blocks, creating a chain of information.
Key Features
Decentralization
No single entity controls a blockchain. Instead, all participants collectively maintain the network.
Immutability
Once data is recorded on a blockchain, it's extremely difficult to change or tamper with, creating a permanent and verifiable record.
Transparency
All transactions are visible to anyone participating in the network, though the parties involved may remain anonymous.
Common Uses
- Cryptocurrency transactions
- Smart contracts
- Supply chain tracking
- Digital identity verification
- Decentralized finance (DeFi)
Related Terms
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