What is a block and Blockchain?
A block is a file where data (pertaining to a specific cryptocurrency network) are permanently recorded. A block records the most recent digital coin transactions that have not yet been recorded to any prior blocks. You can imagine that a block is like a page of a huge ledger or record book.
Understanding Blocks
Each block contains:
- A list of transactions
- A timestamp
- A reference to the block that came before it
- Additional technical information like difficulty target and nonce
The Blockchain Structure
The blockchain is formed when these blocks are cryptographically linked together in chronological order. This creates an immutable record of all transactions that have ever occurred on the network.
Key characteristics:
- Each block references the previous block’s hash
- Changing any information in a block would change its hash
- This would break the chain, making tampering evident
- The entire history is stored on many computers worldwide
Why This Matters
The blockchain structure ensures:
- Immutability: Once recorded, data cannot be altered
- Transparency: Anyone can verify the transaction history
- Security: Distributed nature makes it extremely difficult to hack
- Decentralization: No single entity controls the network
This technology forms the backbone of BitcoinZ and other cryptocurrencies, enabling secure, transparent, and decentralized transactions.