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A blockchain is a type of shared database that differs from a typical database in the way it stores information; Blockchains store data in blocks that link using cryptography.

What is a Blockchain?

A Blockchain is a distributed database shared between nodes in a computer network. As a database, a blockchain stores information electronically in a digital format. Besides, Blockchains are best known for their crucial role in cryptocurrency systems, such as Bitcoin, in maintaining a secure and decentralized record of transactions. So, Blockchain innovation guarantees the fidelity and security of a data record and builds trust without the need for a trusted third party.

A critical difference between a typical database and a blockchain is how the data is structured. A blockchain collects information in groups called blocks, which contain sets of information. Blocks have specific storage capacities, and when filled, they close and link to the previously served block, forming a chain of data called a blockchain. All new information following this newly added block compiles into a freshly created block, which adds to the chain.

A database usually structures its data in tables, while a blockchain, as the name suggests, structures its data in chunks (blocks) that link together. This data structure inherently creates an irreversible timeline of data when implemented in a decentralized fashion. When a block is complete, it is set in stone and becomes part of this timeline. Each block in the chain receives an exact timestamp when added to the chain.

About Blockchain

As new data arrives, it enters into a new block. Once the block is full of data, it is chained to the previous block, causing the data to be in chronological order.

Different types of information are on a blockchain, but a ledger is the most common use for transactions.

In the case of Bitcoin, the blockchain decentralize so that no one person or group is in control, but all users collectively retain control.

Decentralized blockchains are immutable, which means that the data entered is irreversible. For Bitcoin, transactions permanently record and visible to everyone.

How does a Blockchain Work?

The purpose of the blockchain is to allow digital information to record and distribute, but not edit. In this way, a blockchain is the foundation of immutable ledgers or transaction records that cannot be change, delete, or destroy. Blockchains are also known as distributed ledger technology (DLT).

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