Block chain is a computer data structure that manages databases. One popular application of block chains is Bitcoin, which is an electronic cash system using cryptography to control the creation and transfer of money. A block chain can be visualized as a full-length history, or “chain”, containing individual blocks that are linked together and secured with cryptographic hashes on each one. Block chains are typically used to keep track of important events in digital transactions without relying on centralized intermediaries like banks. For example, a block chain can be used to store records of bank transactions, real estate ownership, and even digital identity information such as certificates and qualifications. This article is an introduction to block chain technology. It provides insight into how it works and its benefits and limitations.
A block chain is a transaction database shared by all nodes participating in a system based on the Bitcoin protocol. A full copy of a currency’s block chain contains every transaction ever executed in the currency.