Blockchain

Blockchain is a ledger or record of all the transactions that have taken place with the crypto that it is associated with. For example, if you purchased Bitcoin, then you would own the digital token at a particular location on the blockchain. This transaction (the purchase of coin, and storage of said coin in your wallet) would be recorded at a particular point on the blockchain that would remain forever associated with the transaction forever. A blockchain does not erase transactions when there are sales, transfers, or usage of tokens. The blockchain stores that information and blockchain ‘workers’ validate that transaction indefinitely. This validation of transactions is what makes the blockchain secure and cryptocurrency extraordinarily safe from malicious attempts to gain control of your cryptocurrency.

If you have ever kept track of your own purchases either through an accounting software, or even balancing a chequebook, this is similar to how blockchain works. It records each transaction and when a new transaction takes place, the original ‘block’ will then point to the new block with an updated balance.

Because the blockchain is not stored in a central location (think: bank), it is decentralized. This is a very common word and explanation in the digital world. Decentralization shifts control away from one single person or company and gives that control to the people who own the cryptocurrency. Because the currency is decentralized, it is less susceptible to manipulation from a higher level (government, corporations, etc).