Crypto

Blockchain

Also calleddistributed ledger

A blockchain is a distributed ledger that records transactions in linked blocks across a network of computers. Each new block references earlier blocks, making the record difficult to alter without network consensus.

What Blockchain means

Think of a blockchain as a shared database that many computers keep in sync. New transaction data is grouped into blocks, then added to the chain in order. Because copies are spread across participants, no single party usually controls the whole record.

Blockchains are the infrastructure behind many crypto assets and token systems. They determine how transactions are recorded, how ownership is tracked, and what kind of trust model applies. For users, the design affects transparency, settlement speed, and operational risk.

On a simplified payment blockchain, Alice sends 2 units to Bob. The transaction is checked by the network, placed into a block, and appended to the ledger. Every participant can then see the updated balance history, subject to that chain’s rules.

Common questions

Is every blockchain public?+

No. Some are public and open to anyone, while others are permissioned and restrict who can read, write, or validate records.

Does blockchain remove counterparty risk?+

No. It may reduce some reconciliation needs, but users still face protocol, custody, governance, liquidity, and operational risks.

Go to the original material.

01Investor.gov — What is a blockchain?02SEC — Crypto Assets