Greater Fool glossary / Crypto & Digital Assets

blockchain

A blockchain is a digital record-keeping system where information is stored in connected blocks, with each block containing a list of transactions. Once information is added to a block, it becomes very difficult to change because it is linked to all the blocks that came before it. Many cryptocurrencies use blockchain technology to keep track of who owns what.

In practice

Imagine a notebook where you write down every time someone sends money to someone else. Instead of one person keeping the notebook, thousands of computers each have a copy, and they all must agree before a new transaction is added. This makes it nearly impossible for anyone to cheat by erasing or changing old entries.

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