Blockchain is a distributed digital ledger technology that records transactions across many computers in a way that ensures the records cannot be altered retroactively. It's the foundational technology behind all cryptocurrencies.
How Blockchain Works
Imagine a spreadsheet that is duplicated across thousands of computers worldwide. Every time a new transaction occurs, it's added to a 'block' of transactions. When the block is full, it's cryptographically linked to the previous block, forming a 'chain' — hence, blockchain.
Key Properties
- Decentralized: No single entity controls the network
- Immutable: Once recorded, data cannot be changed
- Transparent: Anyone can verify transactions on public blockchains
- Secure: Cryptographic hashing protects data integrity
- Trustless: No need to trust any single party
Types of Blockchains
- Public (Bitcoin, Ethereum): Anyone can participate
- Private (Hyperledger): Permissioned access for enterprises
- Consortium: Shared between selected organizations
- Layer 2 (Arbitrum, Optimism): Built on top of Layer 1s for scaling
Beyond Cryptocurrency
Blockchain technology is being adopted across industries: supply chain tracking, digital identity verification, voting systems, healthcare records, real estate transactions, and more. The technology enables trust without intermediaries in virtually any domain.
Explore Blockchain Data
CoinMarketGuy's chain ranking feature lets you compare different blockchains by transaction volume, active addresses, and total value locked.