Glossary
Blockchain
15/04/2026
A blockchain is a distributed database that stores records in a sequence of blocks, each cryptographically linked to the previous one. Once data is written to a blockchain, it is practically impossible to alter — making it an ideal foundation for digital currencies and financial systems that require trust without a central authority.
How a blockchain works
- A user initiates a transaction (e.g., sends cryptocurrency)
- The transaction is broadcast to the network and sits in the mempool
- Miners collect transactions from the mempool and form a candidate block
- Miners compete to find a valid hash for the block (Proof of Work)
- The winning miner broadcasts the new block; all nodes verify and add it to their copy of the chain
- The transaction is now confirmed and immutable
Key properties
- Decentralized — no single entity controls the chain; thousands of nodes hold identical copies
- Transparent — all transactions are publicly visible and auditable
- Immutable — altering a past block would require recomputing all subsequent blocks and outpacing the entire network
- Trustless — participants don't need to trust each other; the math guarantees correctness
Types of blockchains
| Type | Description | Examples |
|---|---|---|
| Public | Open to anyone; fully decentralized | Bitcoin, Ethereum, Kaspa |
| Private | Restricted access; controlled by one organization | Enterprise solutions |
| Consortium | Shared between multiple organizations | Banking consortiums |
Blockchain vs BlockDAG
Traditional blockchains form a single linear chain. BlockDAG (Directed Acyclic Graph) networks like Kaspa allow multiple blocks to be created simultaneously, dramatically increasing throughput while maintaining security.
