What is a blockchain?
A blockchain is a shared data system in which network participants maintain and validate an ordered history of state changes. Depending on the network, those changes can represent asset transfers, smart-contract execution, governance actions, or other records.
Core building blocks
- Transactions describe requested state changes.
- Blocks group ordered transactions or state transitions.
- Nodes maintain, validate, and relay network data.
- Consensus determines how the network agrees on valid state.
- Cryptography supports signatures, integrity, and ownership proofs.
Why it matters
Blockchain systems can reduce dependence on a single database operator when the application benefits from shared verification, programmable assets, transparent rules, or decentralized control.
Not every application needs a blockchain. The trade-offs include complexity, public-state exposure, governance constraints, and operational overhead.
