Blockchain: What’s A Blockchain?

Blockchain: A Chain Of Blocks?

The blockchain does exactly what it says on the tin, it is a chain of blocks. What makes it different from just digital Lego, is how each block is cryptographically dependent on the previous ones. This leads to basically a chain of custody for everything that is done on the block chain, and once something is there, it become nearly essentially to change it.

What Is A Block

A block within a blockchain can be essentially anything. When you look at something like a crypto currency, a block would contain all of the transactions that are being processed in the given timeframe. For Bitcoin (BTC), the block time is about 10 minutes, so every 10 minutes a new block of transactions is solved and added to the chain. More on that later.

A Closer Look

We now understand a little bit about what a blockchain is and how it’s used. Now let’s take a closer look at how it’s actually implemented. We’ll use Bitcoin (BTC) as our example, as it’s the most well known and one of the easier one’s to understand.

Miners and Block Solving

This all applies to Proof of Work (PoW) type blockchains. Proof of Stake (PoS) and other types will be covered in a later blog, but to keep it simple, we’ll stick with our Bitcoin (BTC) example.

Multiple Chains in the Blockchain

With what we know now, one has to ask the question, what happens if there are multiple chains that get created by multiple blocks getting solved at the same time?

Blockchain Security

While a blockchain is a good secure way to store data such as a crypto currency ledger, there are some security considerations that need to be considered.

Conclusions

I hope this general overview of what a blockchain is and how it’s useful for things like crypto currency has been beneficial. I have plans to expand out parts of this in later blogs, things like Proof of Stake (PoS) blockchains, mining, and other topics related to it, so stay tuned for more.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store