Blockchain Definition

Blockchain: A Decentralized Ledger of Transactions

This is the working definition that we’ve been using in our workshops, and speaking events. The reason we like this definition, is because it is easy to break down this definition into its parts, in order to understand the whole.


Decentralized

Some examples of things that are centralized will make it easier to understand things are decentralized.

Centralized

  • Banks

  • Facebook / Twitter / Instagram / Patreon

  • Government

Centralization means that the power or control within a system, is within the grasp of a single entity.

Decentralization means that the power or control is distributed amongst the participants of the system.


Ledger

A ledger is a record ( collection, list ) of transactions

Example:

Accountants keep ledgers when they record transactions that take place within a business.


Transaction

A transaction is a transfer of ownership

Example

A send to B : 1 Bitcoin


Expanded Definition

A Blockchain is a ledger, which is shared by the participants of the system, that records the transfer of ownership that takes place between the users of the system.

Transactions are grouped together in what are called “blocks”. These blocks are cryptographically linked together to ensure that the ledger is tamper proof.

What does this enable?

Check out our blog post on Crypto Use Cases to see what becomes possible with the system described above.