BitcoinMadeClear

What is a blockchain?

A blockchain is a record arranged in linked groups called blocks. Bitcoin uses it to keep a shared history of confirmed payments that many computers can check.

Updated

Jump to a question

What does that mean for you?

Think of a notebook whose pages refer to earlier pages. In Bitcoin, a block contains payment information and a link to the block before it. Many computers keep their own copies rather than asking a central bookkeeper for the only copy.

The links help make changes to earlier history detectable. The computers also check the payment rules. A chain of links alone does not prove that everything written in a block is allowed.

What is a blockchain?Earlier block: Part of the payment history. Following block: Refers to the earlier block. Checking computers: Check links and payment rules.Earlier blockPart of the payment historyFollowing blockRefers to the earlier blockChecking computersCheck links and payment rules
Earlier block: Part of the payment history. Following block: Refers to the earlier block. Checking computers: Check links and payment rules.

Can you picture an example?

Imagine a payment to a friend is included in a block. Your friend can see it in the shared history. A later block builds on that history rather than replacing the payment with a fresh private account statement.

What should you remember?

A blockchain records information; your wallet manages access to spending keys. You do not download a coin into your phone when a payment reaches you. Public payment history also means you should think about privacy.

Sources