What is a blockchain?A blockchain is essentially a decentralized digital database for the storage of data. This technology can be used to perform what are known as transactions and to verify and automate them. Transactions are data collections that are distributed to all participants (or ‘nodes’) within a particular network and subsequently collected together in blocks.
How does a blockchain work?The individual blocks of a blockchain are created in a decentralized peer-to-peer network by means of a process called ‘mining’. In mining, transactions are verified by a consensus mechanism, validated and then joined together to form a block. The block thus formed is then chained to the existing blockchain.
What types of blockchain are there?Blockchains can basically be divided into three main types: public, private and consortium or federated. There are also other mixed forms that are not examined in this entry.
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