Blockchain [Meaning] - MasterTerms.com

It operates on a network of nodes, where each node maintains a copy of the entire blockchain, ensuring transparency and security. Transactions are grouped into blocks, which are then linked in chronological order to form a chain. Each block contains a cryptographic hash of the previous block, creating a secure and tamper-proof record. This technology is essential for cryptocurrencies like Bitcoin, allowing for peer-to-peer transactions without the need for intermediaries, while also providing transparency and reducing the risk of fraud.

Blockchain Example

For example, when Alice sends Bitcoin to Bob, the transaction is recorded in a new block along with other transactions. Once the block is filled, it is added to the existing blockchain, making the transaction permanent and visible to all participants in the network.

Glossary: Token
A token is a digital unit used in technology systems to represent rights, assets, or data.
Glossary: Cryptocurrency
Cryptocurrency is a digital or virtual form of currency that uses cryptography for secure financial transactions.
Glossary: Bitcoin
Bitcoin is a decentralized digital currency that allows for peer-to-peer transactions over the internet without the need for intermediaries like banks.
Glossary: Blockchain
Blockchain is a decentralized digital ledger technology that securely records transactions across multiple computers.
Glossary: Cryptomining
Cryptomining is the process of validating transactions and adding them to a blockchain while generating new cryptocurrency coins.

Alternative Meanings:

Blockchain
It works by grouping transactions into blocks that are linked together in a chronological order, using cryptographic hashes to ensure the integrity and security of the data. Each block contains a timestamp, a reference to the previous block, and a list of transactions, making it nearly impossible to alter the information without altering all subsequent blocks, thereby enhancing transparency and trust.
Blockchain Example
For example, in a supply chain scenario, blockchain can be used to track the journey of a product from manufacturer to consumer, allowing all parties to verify its authenticity and origin at each step.