What is a Blockchain?

Imagine a chain of digital blocks, where each block is like a page in a public diary that records transactions, like trades of online game items. Once written, you can't change or erase it. It's managed by many computers worldwide, not just one boss computer. This makes it fair and safe from cheats. That's a blockchain!

In essence, a blockchain is a secure, transparent, and decentralized system that can validate and record transactions without the need for intermediaries, providing a solution to many digital trust issues. It possesses several unique characteristics:

• Decentralization: Unlike traditional ledgers, blockchain isn't maintained by a single entity or authority. It's managed across multiple systems, providing a high level of transparency and security.

• Censorship-Resistant: It's almost impossible to censor or control the information once it's been added to the blockchain.

• Confiscation-Resistant: As the blockchain is decentralized and distributed across multiple systems, it's resistant to confiscation.

• Immutable: Once information is added to the blockchain, it cannot be altered or deleted, making it a source of unchangeable truth.

• Peer-to-Peer (P2P): Blockchain doesn't require a third party or intermediary to validate transactions. Transactions are directly between users and are verified by the network.

• Chain of Blocks: Blockchain is composed of a series of blocks, each linked to the previous one. If one block is modified, all preceding blocks would also need to be altered - a near-impossible task due to the network's decentralized nature.