Crypto
What is a blockchain and how does it work?
A blockchain is a distributed, append-only ledger that records transactions across a network of computers. Each block contains a batch of transactions, a timestamp, and a cryptographic hash linking it to the previous block — making the chain tamper-evident. No single entity controls it. Consensus mechanisms (proof of work, proof of stake) ensure all participants agree on the ledger's state.
Key Considerations
- Decentralization is the core value proposition — no single point of failure or control
- Public blockchains (Bitcoin, Ethereum) are transparent; private blockchains trade transparency for speed
- Immutability means mistakes are permanent — smart contract audits are critical
- Blockchain is the infrastructure layer — most end users interact with applications built on top of it