What is Blockchain?

You probably noticed that the word “blockchain” is used more often now but could never figure out what blockchain is?

Here we have a simple explanation used by many professionals in a space.

A blockchain is a decentralized, distributed, and public digital ledger used to record transactions across the entire computer network in a way that is impossible to change, hack or cheat the system.

Still confused? Read on for the breakdown of blockchain’s definition.

How Does a Blockchain Work?

Blockchain is an accumulating list of records called blocks linked together through cryptography.

Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data.

The timestamp proves that the transaction data existed when the block was published to get into its hash. 

As blocks each contain data about the block previous to it, they form a chain, with each additional block backing the ones before it. 

Thus, blockchains are invulnerable to transformation of their data because once recorded, the data in any given block cannot be modified retroactively without altering all following blocks.

I know it’s quite a bit of computing jargon involved here, but we had to mention the official definition above for any level of knowledge.

However, blockchain is more straightforward than you think.

In simple words, blockchain is a highly secure database not owned by any government, companies, or individuals that will operate and develop as long as computers and the internet will exist.

History of blockchain 

Computer scientist David Chaum first recommended blockchain-type protocol in his 1982 dissertation “Computer Systems Established, Maintained, and Trusted by Mutually Suspicious Groups.”

The next major project in cryptography was announced by Stuart Uber and W. Scott Stornetta in 1991.

They intended to implement a system where users could not alter document timestamps.

However, a fully functional blockchain that we see today was created seventeen years later by Satoshi Nakamoto in 2008.

When writing this article, we still don’t know who Satoshi is and if he acted independently or in a big team of computer scientists. 

What we do know is Nakomoto created the first of its kind, an entirely operational blockchain which is the core of renowned cryptocurrency Bitcoin.

Nakamoto’s blockchain also aims to solve the double-spending problem, eliminating the need for a trusted third party that could willingly or unwillingly reverse transactions.

What is a Blockchain Wallet?

A blockchain wallet is a digital wallet that allows its users to store and manage their cryptocurrency assets directly with secure access to the blockchain.

What is blockchain NFT? 

A blockchain NFT is a non-exchangeable unit of data stored on the blockchain, a type of digital ledger that can be sold or traded.

The NFT data units can be associated with digital files like photos, videos, music and domains.