In simplest terms, blockchain is explained as a global distributed ledger made of data blocks sequentially linked in a chain. The Bitcoin blockchain’s unique characteristics stem from merging cryptography and transparency within a distributed technological framework. Bitcoin transactions between two parties occur within a global peer-to-peer network without needing to rely on third-party authentication.
Blockchain technology tackles the problem of digital trust by securely recording important information in a public space. Data stored on the blockchain exists in a shared and continually reconciled state, and the data is decentralized, can be encrypted and timestamped—but it cannot be tampered with nor changed retrospectively.