What is a blockchain?

Let’s start at the beginning: The blockchain is a distributed ledger that is open to absolutely everyone and is almost impossible to change. What problem does this solve? The blockchain is completely decentralized, which means that not one single organization is in the power of the data on the blockchain. The past has shown many times that there are always people who abuse the power they have over certain data. That is why the Bitcoin network has never been hacked before.

In fact, the blockchain consists of a chain of blocks of information. A new block is added to the chain each time, but the new block always contains information from the previous block, so previous data is never lost. So, you can already guess where the name "blockchain" comes from.

Eventually, blockchains were adapted to better suit the creation of today's most famous cryptocurrency, Bitcoin. The same technology that was used to prevent fraud and ensure transparency for all users is now used to record transactions and secure them over time so that they cannot be manipulated in any way. These transactions are extremely secure and completely irreversible.

How does blockchain work?

Proof of Work (PoW)

Proof of Stake (PoS)

Blockchain layers

Blockchain applications