Blockchain

The base unit of any blockchain is called a block. Each functions like a page of an ever-growing list of records, cryptographically linked to the one preceding it. By linking the blocks together in a chain — hence the term “blockchain” — it becomes virtually impossible to alter any past records without breaking continuity with those coming after. This makes blockchains tamper-resistant, providing a reliable record of transactions and balances without the need for a centralized authority.

Blockchains rely on a consensus mechanism to validate blocks and keep records consistent across the peer-to-peer network. Transactions on the chain are organized into blocks — recording the addresses, assets, and time — by a miner or validator, then verified through the consensus mechanism. Miners or validators typically receive rewards for successfully adding new blocks.

Blockchains can be broadly categorized into two groups: private and public networks. Public networks are those that anyone can view and participate in, such as bitcoin and Ethereum. Private networks, on the other hand, require special permissions to access. These are often operated by companies for internal data management or made accessible to select financial institutions for settling balances between organizations.

Since the launch of bitcoin, the first public chain, in 2009, the space has matured considerably. Ethereum introduced support for programmable smart contracts on its blockchain, paving the way for decentralized finance (DeFi). More recently, blockchain technology is increasingly being recognized for its applications in traditional finance and enterprise operations. The benefits of fast execution, reliable digital ownership records, and programmability are driving more and more organizations to integrate blockchains into their workflows.