DeFi 10111 September 2021

Blockchain Explained

Blockchain

Summary

  • A blockchain is a database or ledger
  • A blockchain is made up of different blocks of data chained together
  • Bitcoin and Ethereum are the most common types of blockchains

As commonly used in decentralized finance and the cryptocurrency market at large, a blockchain is a type of database. A database can be termed as a collection of data that is stored in a computer network. It is a system used to record information that is impossible to very difficult to hack, chance, or cheat the system.

As the name implies, a blockchain comprises different blocks that contain a given number of transactions. Every time a new transaction takes place on the blockchain, the transaction is added to participating databases. This makes a blockchain a type of DLT (Distributed Ledger Technology).

The most common blockchains available today are Bitcoin and Ethereum. These are continually growing as new blocks are added to the chain, therefore improving the security of the database.

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