A SIMPLE GUIDE

Blockchain Technology Explained

+ how it relates to Bitcoin. Written from a completely non-technical perspective.

Defining Blockchain Technology

Blockchain technology is a type of distributed ledger technology (DLT) — It is an accounting system where the ledger (record of transactions) is distributed among a network of computers.

So at its core, blockchain technology is a record-keeping tool.

This network of computers all manage the blockchain together without hierarchy (refer to header image). With such a flat architecture, blockchain networks are often referred to as peer-to-peer networks.

First, these computers verify all transactions one by one and add them onto a ‘block’ of information. Then these blocks are added to the blockchain and downloaded onto each computer. In a nutshell, this is how these computers keep the blockchain secure and running.

TL:DR — a blockchain is a digital ledger of transactions that is managed and owned by a peer-to-peer network of computers.

Breaking it down

The term blockchain refers to the fact that it is a ‘chain’ of ‘blocks’. A ‘chain’ because everything is recorded in…