What is Blockchain

Blockchain is a digital database or ledger that is distributed among computers in a peer to peer network. A blockchain is the foundational data structure behind Bitcoin. A blockchain is a list of records called blocks. Each of these blocks contains data—in Bitcoin's case, each block contains transactions, representing transfers of bitcoin from one user to another. The blockchain can be thought of as a digital ledger that keeps track of every account on the network. The entire blockchain is the book that stores the record of every transaction that has ever taken place on the network between its accounts. Each block, then, is like a new page added to the ledger to update the state of accounts on the network.

How Does Blockchain Works

You might be familiar with spreadsheets or databases. A blockchain is somewhat similar because it is a database where information is entered and stored. But the key difference between a traditional database or spreadsheet and a blockchain is how the data is structured and accessed.