Cryptocurrency101: Blockchain Technology

Blockchain technology is a decentralized, distributed ledger that records transactions across a network of computers. It is the underlying technology behind cryptocurrencies like Bitcoin, but it has many other potential uses as well.

A blockchain is composed of a chain of blocks, each containing a list of transactions. Each block also contains a reference to the previous block, creating a chain of blocks that stretches back to the very first block, known as the genesis block. This creates a permanent, unchangeable record of all transactions on the blockchain.

Because the blockchain is decentralized, there is no single point of control or failure. Instead, the network is maintained by a network of users, known as nodes, who work together to validate transactions and add them to the blockchain.

One of the key features of blockchain technology is that it is completely transparent and open for anyone to see, but at the same time it is secure and private. Each user has a unique encryption key that is used to sign transactions, and these keys are stored on the blockchain itself, meaning that no personal information is ever revealed.

While blockchain technology is most commonly associated with cryptocurrencies, it has many other potential uses, such as smart contracts, digital voting systems, and supply chain management.

*These videos are for entertainment purposes only, and are not to be construed as financial or investing advice. Do your own due diligence.*