Blockchain
Definition
A blockchain is a distributed, immutable ledger that is used to record transactions and track assets in a business network. Each block in the chain contains a number of transactions, and every time a new transaction occurs on the blockchain, a record of that transaction is added to every participant’s ledger.
Why It Matters
Blockchain provides a way to record and transfer data that is transparent, secure, and resistant to censorship or modification. This enables trust in a decentralized environment without the need for a central intermediary like a bank or government.
Contextual Example
Bitcoin uses a blockchain to record all transactions. Every transaction is added to a public ledger that is shared among all participants in the network, ensuring that no one can spend the same bitcoin twice.
Common Misunderstandings
- Blockchain and Bitcoin are not the same thing. Blockchain is the underlying technology, and Bitcoin is the first and most famous application of that technology.
- Blockchains are not inherently anonymous; many, like Bitcoin, are pseudonymous, meaning transactions are public but linked to a wallet address, not a name.