LeoGlossary: Blockchain

1 mo (edited)
LeoFinance
1 Min Read
210 words

A Blockchain joins groups of financial transactions together in what are called blocks.

When a transaction is posted, it tells everyone that x amount of the currency was sent from Wallet A to Wallet B. All transactions that occur during that period of time are contained in an individual block.

With each new block created, it is linked to the previous one thus creating a "chain". After the blocks are fully validated and joined, they cannot be chained without the consensus of the block producers agreeing to reverse it.

The most common forms of Blockchain are:

Each utilizes a different mechanism to arrive at consensus. Regardless of the system, they eliminate the double spend problem.

Blockchain used Distributed Ledger Technology (DLT) to maintain a public ledger in a decentralized fashion. This is done through node operations who are unrelated all having an duplicate copy of the ledger on their computers. The different nodes all form a network.

Cryptocurrency is the monetary unit that is built upon blockchain.

The infrastructure being build around blockchain is considered by many to be the foundation of what will become Web 3.0.

Related:

Blockchains Explained Like You Are Five

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Thanks for this definition.

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Solana (SOL) blockchain uses something called Proof of History to reach consensus. I'm not sure how common it is, but it's supposed to save time in reaching consensus.

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