chain

What is Blockchain?

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Ok, you know what Bitcoin and Ethereum are, and even own some, but, have you ever wondered what blockchain is?

In short, blockchain is the network where most cryptocurrencies exist. Basically, as you will probably understand from its name, blockchain is a database made of a chain of blocks, each block containing a set of transactions made with the cryptocurrency in question, which makes it different from other types of database.

In particular, blockchain collects information together in blocks, which have certain storage capacities depending on the blockchain we are talking about and, when filled, are connected onto the previously block also filled with transactions, forming what we know as “blockchain.”

When new information is added, it is stored into a block, that is then connected to the previous block when it is filled.

One of the most characteristic features of blockchains is the fact that they are decentralized. Unlike other databases that might simply be a huge computer owned by a company in its headquarters, blockchain is stored in multiple computers, and each computer or group of computers is operated by a different user, which ensures decentralization.

The concept is more complicated than that, but we are here to make things simple. So, to sum up, a blockchain is a kind of database stored in multiple computers owned by different users made of blocks that are connected one to another when they are filled with transactions. If you want to learn more about this concept, please visit Investopedia.

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