What is a blockchain and how does it work?

Transactions are recorded in an account book called a ledger. A blockchain is a type of distributed database or ledger—one of today’s top tech trends —which means the power to update a blockchain is distributed between the nodes, or participants, of a public or private computer network.

What is the blockchain design that Bitcoin inspired?

The blockchain design that Bitcoin inspired has been adapted for other kinds of records. The underlying principle is there is no central authority controlling a single ledger. Everyone who is part of the system controls a decentralized and shared record.

What is the most common use for blockchain?

Different types of information can be stored on a blockchain, but the most common use so far has been as a ledger for transactions. In Bitcoin’s case, blockchain is used in a decentralized way so that no single person or group has control—rather, all users collectively retain control.

What would happen without the blockchain?

Without the blockchain, the entire cryptocurrency market would not exist. The blockchain was created by a pseudo-anonymous individual going by the name of Satoshi Nakamoto. Satoshi’s innovation that powers cryptocurrencies is known as the blockchain. It is a ledger of transactions that is distributed on computers all over the world.