What is blockchain... So what does it all mean?

 Meaning of Blockchain

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Categories: Cryptocurrency

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What is blockchain... So what does everything mean?

A blockchain is a distributed database or ledger that is shared between nodes of a computer network. As a database, a blockchain stores information electronically in a digital format. Blockchains are best known for their vital role in cryptocurrency systems such as bitcoin, in maintaining a secure and decentralized record of transactions.

 

The innovation with blockchain is that it guarantees the fidelity and security of records of data and generates trust without the need for a trusted third party. A key difference between a typical database and a blockchain is how the data is structured. A blockchain collects information together in groups, known as blocks, that contain sets of information.

 

Blocks have some storage capacity and, when filled, are closed and linked to the previously filled block, forming a chain of data called a blockchain. All the new information that comes after that newly added block is compiled into a newly created block which once filled will also be added to the chain.

 

A data base usually structures its data into tables, whereas a blockchain, as its name implies, structures its data into chunks (blocks) that are strung together. This data structure inherently makes an irreversible timeline of data when implemented in a decentralized nature. When a block is filled, it is set instone and becomes a part of this timeline. Each block in the chain isgiven an exact timestamp when it is added to the chain.

Blockchain, Decentralized Nature, Blocks, Cryptocurrency, Database, Bitcoin

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