Blockchain is a distributed digital ledger technology that serves as a shared database of records, or blocks, that are linked and secured through cryptography. It is the underlying technology behind cryptocurrencies, such as Bitcoin, Ethereum, and Litecoin.
In a blockchain system, all participants share identical copies of the same ledger. This shared, decentralized ledger records transactions that can’t be tampered with, making it a secure platform for storing and exchanging digital assets.
By providing users with an immutable transaction record, blockchain technology prevents fraud and helps to ensure transparency. Cryptocurrency is merely one type of asset that can be stored and exchanged through a blockchain. Additionally, blockchain technology can be used to create digital contracts and smart systems that are automated and self-executing.