Blockchain technology is the backbone of the cryptocurrencies that have made decentralized finance a reality, but what exactly is a blockchain, and how does it work?

Blockchain is a decentralized, digital database that stores transactions and other forms of data. Key blockchain features include immutable records, distributed ledger security, and smart contracts.

Blockchain relies on "miners" to verify transactions. Unfortunately, mining is a resource-intensive task that has already come under scrutiny for its impact on the environment, 101 Blockchains notes.

As AI grows, we'll need crypto and blockchain technology to know what's real The rise of artificial intelligence will necessitate a trustless, digital form of verification.

Blockchain is the technology that underlies bitcoin — the cryptocurrency — but it is not synonymous with bitcoin. At its core, blockchain is a ledger of transactions similar to a database.

Venture capitalists invested over $1.3 billion in blockchain technology in the first half of 2018, banking on the idea that blockchain will eventually become integral to all business.

October 19, 2024 — 06:01 pm EDT Written by Dawn Allcot for GOBankingRates -> Blockchain technology, the technology that keeps cryptocurrency secure, has come a long way since its inception.