Blockchain 101

💡What is a blockchain?

A blockchain is a shared digital state that is maintained by a group of independent participants called Validators. Transactions that update this state, are grouped into blocks and chained together sequentially.

To determine the next block, Validators participate in Consensus, where they validate and finalize transactions together without trust. This process repeats every block time, ensuring the blockchain continues to grow in a secure and fraud proof way.

Click here for a comprehensive definition of a blockchain

💡Why build blockchain?

Since no single party controls the network, a blockchain is decentralized - its rules and operation are enforced by the stakeholders rather than a central authority.

Key properties of decentralization include:

1. It cannot be censored or controlled by non-stakeholders

2. It self governs and operates autonomously

3. It has no single point of failure

It's important to note the key properties of decentralization 👆

These properties are ideal for applications that need to be trusted by the public and tamper proof like:

• ✅ Payment systems

• ✅ Media

• ✅ Governance

⚠️ The only fundamental difference between a Web2 app and a blockchain app is decentralization. Without it, a blockchain app has no real advantages over a standard web app.