What Is A Blockchain ? Blockchain Explained Simply

Blockchain Explained Simply

A blockchain is simply a database meaning it contains data. A database is a collection of information that is stored electronically on a computer system. Unlike traditional databases blockchains store data in blocks. Keep in mind that all Blockchains are databases but not all databases are block chains.

A block is just a collection of data or records. For most blockchains like Bitcoin this data is just a list of transactions (a ledger) and for some others like Ethereum and Cardano the data would include smart contracts.

Fig. 1: Visualization of blocks on a blockchain Source: https://www.spheregen.com/blockchain-technology-basics/

Fig 2: Another visualization of blocks on a blockchain Source: https://www.nist.gov/blockchain

When a block is complete meaning it is full of some data (like a list of transactions), it is then added to the network through a process called mining.

Some blockchains have native coins with the same name like Bitcoin, while other blockchains have a different name from their coin, like the Blockchain Cardano that uses the native ADA coin or like the blockchain Ethereum that uses the coin ETH.