Blockchain

What Is a Blockchain?

A blockchain is a sequence of individual blocks that contain information about transactions conducted within a specific period of time. Each block also possesses a distinct identifier that sets it apart from other blocks in the chain. These blocks are generated through the process of solving cryptographic problems, which is referred to as mining. Miners who successfully mine a block on the blockchain receive a reward. For instance, during the initial establishment of the Bitcoin blockchain, miners who solved the cryptographic hashing problem required to add a new block to the blockchain were given a reward of 50 BTC. Blockchains are decentralized records, meaning they are not stored in a central location but rather on the computers of every user of the blockchain.

Meanwhile, the unique block identifier, known as the hash, is derived from the information contained in every previous block in the blockchain. This makes it extremely challenging to falsify any record on the blockchain, as a malicious actor would have to modify every block on every instance of the blockchain. Consequently, blockchains are considered practically unfalsifiable and are recognized as unchangeable records of transactions. Currently, most blockchains are public, including popular cryptocurrencies like Bitcoin and Ethereum. Using a tool called a block explorer, anyone can view transaction records on a specific blockchain. However, blockchains theoretically provide a high level of user anonymity.

Although public blockchains are prevalent, private versions are also being explored as a solution for various business and governmental use cases.