Blockchains are, in their simplest form, a distributed, public ledger.
This means that every transaction that happens on the blockchain is recorded, forever, within the chain and is available for anyone to see.
Blockchains utilise cryptography in order to be secure, function and allow people access to the tokens they hold.
They are more often than not decentralised meaning no one entity controls them.
A Chain Of Blocks
Building up the chain
Blocks in their simplest form are just a recording of transactions that have happened on the blockchain (e.g. sending tokens from one address to another).
A block of one or more new transactions is collected into the transaction data part of a block. Copies of each transaction are hashed (encrypted), and the hashes are then paired, hashed, paired again, and hashed again until a single hash remains (the encrypted data of all transactions that have so far taken place on the blockchain).
This hashed data is then stored in the block header. Each block also stores the hash of the previous block’s header, chaining the blocks together. This ensures a transaction cannot be modified without modifying the block that records it and all following blocks, which is very (very) difficult to do.
How blockchains have evolved
Bitcoin was the first block based cryptocurrency to appear in the world. Created by the illusive architect called Satoshi Nakamoto. Bitcoin is a great store of a value but it is currently only successful at moving tokens from one address to another. However the technology has evolved since it’s inception with each new iteration building upon the last.
Now with the invention of Smart Contracts blockchains can be programmed to do much more than just move tokens from one wallet to another – you can now have decentralised finance offerings and applications.
Store Of Value
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