A blockchain is a type of distributed record system in which information is grouped into blocks and linked in sequence. Different systems use different designs, networks and rules, so “blockchain” is a broad term rather than one single technology.
What a blockchain can record
A network may record transactions, ownership claims or other data according to its software rules. Participants use a consensus process to agree on the state of the record. Some networks are public, while others restrict who can read or update information.
Limits of the record
- A record does not automatically prove that the underlying real-world claim is true.
- Blockchain use does not guarantee privacy, security or permanence in every system.
- A token or transaction record does not by itself make an investment worthwhile.
- Different networks can have different fees, permissions and failure modes.
Related terms
A block groups records, a node participates in the network, and consensus describes how participants agree on updates. Explore the existing explainers for blocks, nodes and consensus. This is educational information, not investment or provider advice.