A blockchain is a decentralized ledger system distributed across a network of nodes (computers). It is composed of block sequences that are stored in a consecutive fashion in a distributed ledger.
Each transaction is recorded and stored on that, often public, ledger, ensuring transparency, visibility, and no need for the involvement of an intermediary or third party, such as a bank or financial institution. Instead, participants in the network like validators (in proof-of-stake systems) or miners (in proof-of-work blockchains) do the job of validating and confirming transactions, with records transparently stored on the chain.
As the name suggests, in the blockchain, multiple transactions are organized into a single block, which is chronologically added to the blockchain in a way that it cannot be changed or tampered with.
Cryptocurrencies such as Bitcoin and Ethereum operate on blockchain technology, but blockchain use is not limited to crypto transactions or digital assets. They are also compatible with decentralized applications (dApps) and decentralized finance (DeFi) protocols, as well as smart contracts and digital identity functionalities.
