What is a Blockchain?
A blockchain is essentially a chain of records, also known as blocks, that are securely linked through cryptography. Each block includes a cryptographic hash of the previous block, a timestamp, and data from transactions.
This process creates a continuous chain of blocks, with each block strengthening the previous ones. This makes blockchains resistant to changes in data, as any alteration in one block would require changes to all subsequent blocks. Blockchains are often managed by a peer-to-peer network and serve as a distributed ledger, where nodes follow a protocol to communicate and validate new blocks.
Though changes can still occur through forks, blockchain technology is considered secure and highly reliable. It was first invented in 2008 by an unknown person or group under the name Satoshi Nakamoto for the digital currency bitcoin.
This invention allowed bitcoin to solve the double-spending problem without the need for a trusted authority. The concept of blockchain has inspired other digital currencies and is used in a public and widely accessible way.
While some have proposed private blockchains for business use, others argue that permissioned blockchains can be more decentralized and secure in practice than permissionless ones.
