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What is a Blockchain?

What is a Blockchain?
Photo by Shubham Dhage / Unsplash

Blockchain is a shared, immutable ledger that facilitates the process of recording transaction and tracking  assets in a business network. The ledger containing the transactions is  duplicated and distributed across the entire network of computer systems on a blockchain. Each block on the chain contains a number of transactions, and everytime a new transaction occurs on the blockchain, a record of that transaction is added to every participant's ledger. Blockchain is a type of Distributed Ledger Technology (DLT) in which transactions are recorded with an immutable cryptographic signature called a hash. Virtually anything of value can be tracked and traded on a blockchain network, reducing risk and cutting costs for all involved.

Properties of Distributed Ledger Technology (DLT)

  • Programmable (i.e. smart contracts)
  • Secure (all records are individually encrypted)
  • Anonymous (the identy of participants remains anonymous or psydonymous)
  • Unanimious (all network participants agree to the validity of each of the records)
  • Time-stamped (a transaction timestamp is recorded on a block)
  • Immutable (Any validated records are irreversible and cannot be changed)
  • Distributed (All network participants have a copy of the ledger for complete transparency

Can a Blockchain be hacked?

If one block in one chain is changed, it will be immediately apparent it had been tampered with. If hackers wanted to corrupt a blockchain system, they would have to change every block in the chain, across all of the distributed versions of the chain. This means if a blockchain (i.e. Bitcoin, Ethereum, etc.) constantly grows it makes it significantly more secure.

Disclaimer:

Opinions expressed at Vestorportal.com are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. Vestorportal.com does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is Vestorportal.com an investment advisor. Please note that Vestorportal.com participates in affiliate marketing.

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