Blockchain: What It Is & How It Works

In France, The Blockchain Group supports companies with their blockchain technology projects.

What Is a Blockchain – Definition

Blockchain definition: Blockchain is a system for storing and exchanging data on the Internet, used to keep track of every online virtual currency transaction. In other words, blockchain technology works like a database, storing electronic information in digital format.

  • Each piece of this data forms a block, and each of these blocks is secured and linked together through cryptographic principles. The block is then verified by many computers in the network where the transaction takes place. Once verified, the block is added to a chain. This creates a single data record with unique histories.
  • Blockchain technology is decentralized by nature and delivers transparency and dependable security for any use. It can also store several types of information. Even so, blockchain is mainly used as a ledger for transactions.
  • In the case of Bitcoin, the blockchain is used in a decentralized way. This allows the cryptocurrency to operate without any controlling group. Instead, all users keep control collectively.
  • Finally, blockchains are an immutable technology. In other words, the data written to them cannot be altered. They also provide better traceability of assets and products. In addition, blockchain can easily execute smart contracts.
  • Want to invest in the Bitcoin blockchain? Simply sign up with Vantage FX and start investing.

Blockchain Synonyms

  • Chain of Blocks
  • Cryptographic Ledger
  • Distributed Ledger
  • Digital Ledger

Blockchain Etymology

The term « blockchain » is made up of two words: « block » and « chain ». A block is a unit of data and a chain is a series of links. Blockchain can therefore be read as a « chain of blocks ».

Blockchain Terms and Related Vocabulary

  • Decentralized Crypto Exchange Blockchain – Definition: These are applications built on a blockchain that coordinate large-scale exchanges of crypto assets between multiple users. The decentralized exchange runs on automated algorithms, so it needs no financial intermediary.
  • Blockchain Node – Definition: The node of a blockchain is part of the cryptocurrency ecosystem. It is required to keep tokens such as Bitcoin or Dogecoin running. In short, it is the essential building block of the blockchain.
  • Transaction Block – Definition: A transaction block is the record within the blockchain that is used to confirm pending transactions.
  • Dapps – Definition: Also called decentralized applications, Dapps are software programs that run partially or entirely without a controlling authority. How they work is based on the execution of smart contracts or blockchains.
  • Blockchain Miner – Definition: A miner is a person whose role is to verify the transactions and operations that other users carry out on a blockchain network.
  • Blockchain Hash – Definition: This is a hashing data structure used to record data on a blockchain.
  • Blockchain Ledger – Definition: This technology, also known as a distributed ledger, records transactions of goods whose details are stored in several places at the same time.
  • Blockchain Oracle – Definition: In blockchain technology, the oracle is an information source that makes it possible to integrate real-world variables into smart contracts. In other words, the oracle supplies the external data that keeps Dapps running through the smart contract.
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Fondatrice de BK SEO Marketing
Cristina Balan est la fondatrice de BK SEO Marketing, société éditrice des plateformes Edubourse.com et TraderFrancophone.fr. Elle compte 15 ans d'expérience dans le courtage en ligne, dont 10 ans à la tête d'équipes commerciales chez XTB et Admirals (XTB 2011–2016, Admirals 2016–2021). Diplômée de l'ESCP Europe, elle a réussi l'examen de certification professionnelle AMF (janvier 2012) et a réussi l'examen CFA Level I (CFA Institute, 2011). Elle conçoit et supervise les contenus et analyses destinés aux investisseurs, avec un objectif : une information fiable, structurée et accessible.