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What Is Blockchain?
Blockchain explained: how this shared ledger technology works and why it matters for crypto.
A shared record
A blockchain is a database copied across many computers. New data is grouped into blocks, and each block is linked to the previous one with cryptography, forming a chain that is very hard to alter.
Consensus
Because no single party is in charge, the network needs rules for agreeing on the next block. Proof of work uses computing power, and proof of stake uses staked coins, to make cheating expensive.
Public and private chains
Public blockchains such as Bitcoin and Ethereum are open for anyone to use. Private or permissioned chains restrict who can participate and are used by some companies.
Beyond payments
Blockchains can run smart contracts, programs that execute automatically when conditions are met. This enables decentralized finance, digital collectibles, and tokenized assets.
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Educational content only, not financial advice. Crypto assets carry a high risk of loss.
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