What is a Blockchain

A blockchain is a digital ledger that records and stores data in a decentralized manner. It is essentially a database that is managed by a network of computers, rather than a single central authority. Each block in the chain contains a cryptographic hash of the previous block, along with transaction data, and a timestamp. This creates a permanent and unalterable record of all transactions, making it very difficult to tamper with or manipulate the data.

One of the key features of a blockchain is its immutability, which means that once a transaction is recorded on the blockchain, it cannot be changed or deleted. This makes it a highly secure and transparent system, which is why it has become increasingly popular in the financial industry and beyond.

Blockchains are used for a variety of purposes, including financial transactions, supply chain management, and identity verification. They can also be used to create smart contracts, which are self-executing contracts with the terms of the agreement written into code on the blockchain.

Transactions on the network are processed, finalized, and recorded into groups called blocks by Validators . When a block is created, it makes a permanent record of all the transactions and state of the network. A cryptographic hash is then created to identify that block and can be used to verify its data.

The chain aspect comes from each block being connected to each other. When a new block is created, data from the previous block is verified through its cryptographic hash, connecting the new block to the previous. This process continues as each block is created, moving the state of the network forward one block at a time.

The blockchain is operated by a global network of Validator nodes. These nodes are computers that, transact data, value, and create new blocks. When a new block is created, nodes ensure that data across the network is aligned and verifies the history from the previous block by getting consensus.