What is blockchain?

A blockchain is a digital record system maintained by multiple computers simultaneously rather than being controlled by a single company or organization. New business data are aggregated into "blocks" and linked to previous blocks through encryption techniques, forming chains of records that can be edited backwards with great difficulty

This kind of structure is what allows cryptocurrencies like Bitcoin and Ethereum to work without a central bank or payment service provider overseeing every transaction, but instead rely on a network of distributed participants verifying the status of individual accounts through automated mechanisms. Since historical records are shared between many independent computers, changing back data requires editing all relevant information at once.

In addition to monetary applications, blockchain technology has also been applied to virtual contracts ( smart contracts ), digital identity systems and tracking the ownership of digital assets such as NFT . However, blockchains are considered a fundamental technology rather than an investment in themselves. The value and risk of any asset created on each block is dependent upon many other factors.