Blockchain technology definition
Blockchain technology is a decentralized system for recording and storing information. Blockchains are a kind of distributed ledger technology (DLT) made up of records (called “blocks”) linked in a sequence — each block has the unique number of the preceding block, forming a chain.
Unlike traditional databases, which are typically held on one server, blockchains are decentralized over P2P networks. Every node in the network has a full copy of the blockchain, and each new block must be checked and validated by a majority of node operators. Because no single block can be changed without also modifying every other block down the line, this makes blockchain transactions practically irreversible.
Real blockchain technology examples
- Cryptocurrencies like Bitcoin and Ethereum are the most famous examples of blockchain technology, with thousands of competing coins in existence today. Every transaction involving cryptocurrencies is recorded publicly on blockchains, letting anyone view the records of any particular wallet.
- Non-fungible tokens (NFTs) link digital media to unique positions on the blockchain in order to prove ownership. Most NFTs are associated with digital art, like the Bored Ape Yacht Club. The NFT market is highly speculative and many people have lost substantial sums on their investment.
