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What is blockchain?

4 cited papers · March 22, 2026 · Powered by Researchly AI

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Blockchain is a decentralized transaction and data management technology first developed for Bitcoin cryptocurrency. Yli- Its core features — including decentra…

Blockchain is a decentralized transaction and data management technology first developed for Bitcoin cryptocurrency.1Yli-Huumo et al. (2016)1Its core features — including decentralization, immutability, transparency, and auditability — make transactions more secure and tamper-proof, enabling applications far beyond cryptocurrency.2
1
Where Is Current Research on Blockchain Technology?—A Systematic ReviewJesse Yli-Huumo, Deokyoon Ko et al.2016PLoS ONE
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2
A Survey of Blockchain From the Perspectives of Applications, Challenges, and OpportunitiesAhmed Afif Monrat, Olov Schelén et al.2019IEEE Access
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  • Distributed Ledger — Blockchain is a peer-to-peer distributed ledger that is cryptographically secure, append-only, immutable, and updatable only via consensus or agreement among peers.
1Hattab & Alshaikhli (2019)1
  • Consensus Mechanism — The process of attaining unified agreement on the state of the network in a decentralized way, facilitating verification and validation of information added to the blockchain.
1
  • Cryptographic Security — Blockchain security relies on components such as hash functions, Merkle trees, digital signatures, and elliptic curve cryptography (ECC) to ensure data integrity. Yadav (2021)
  • Smart Contracts — Self-executing code stored on-chain that generalizes scripting capabilities to support decentralized applications, tokens, and governance.
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Consensus Algorithms Blockchain: A comparative studySiham Hattab, Imad Fakhri Taha Alshaikhli2019International Journal on Perceptive and Cognitive Computing
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Diagram
+----------------------------------------------------------+
| BLOCKCHAIN NETWORK |
| |
| [Node A] <-----> [Node B] <-----> [Node C] |
| | | | |
| [Ledger Copy] [Ledger Copy] [Ledger Copy] |
| |
| LEDGER STRUCTURE: |
| +----------+ +----------+ +----------+ |
| | Block 1 | -> | Block 2 | -> | Block 3 | |
| |----------| |----------| |----------| |
| | Hash | | Hash | | Hash | |
| | Prev Hash| | Prev Hash| | Prev Hash| |
| | Txns | | Txns | | Txns | |
| +----------+ +----------+ +----------+ |
| |
| CONSENSUS LAYER: Proof-of-Work / Other Mechanisms |
+----------------------------------------------------------+

An identical copy of the ledger is stored on all nodes in the network, and built-in validation mechanisms leverage cryptography to ensure the validity of incoming blocks before committing them. Beyond the linear chain structure, alternative distributed ledger paradigms such as directed acyclic graphs (DAGs) are also gaining momentum, with comparisons made across data structures, consensus mechanisms, transaction confirmation confidence, ledger size, and scalability.

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Blockchain faces several significant challenges. Scalability remains a major concern as the demand for higher transaction throughput grows, and energy consumption — particularly in proof-of-work systems — poses environmental and economic challenges. André et al. (2021) Additionally, over 80% of early research focused narrowly on the Bitcoin system, with less than 20% addressing other blockchain applications such as smart contracts and licensing, indicating gaps in broader exploration.12
1
Where Is Current Research on Blockchain Technology?—A Systematic ReviewJesse Yli-Huumo, Deokyoon Ko et al.2016PLoS ONE
View
2
A Survey of Blockchain From the Perspectives of Applications, Challenges, and OpportunitiesAhmed Afif Monrat, Olov Schelén et al.2019IEEE Access
View
  • Blockchain is a decentralized, distributed ledger technology that ensures security and data integrity without any third-party organization controlling transactions.
1
  • Its key features — decentralization, immutability, transparency, and auditability — make it applicable across financial services, healthcare, risk management, and more.
2
  • Consensus mechanisms are central to how blockchains validate and agree on the state of the network in a decentralized manner.
3
1
Where Is Current Research on Blockchain Technology?—A Systematic ReviewJesse Yli-Huumo, Deokyoon Ko et al.2016PLoS ONE
View
2
A Survey of Blockchain From the Perspectives of Applications, Challenges, and OpportunitiesAhmed Afif Monrat, Olov Schelén et al.2019IEEE Access
View
3
Consensus Algorithms Blockchain: A comparative studySiham Hattab, Imad Fakhri Taha Alshaikhli2019International Journal on Perceptive and Cognitive Computing
View
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  1. "Proof-of-Work vs Proof-of-Stake consensus mechanisms in blockchain"
  2. "Blockchain applications in healthcare and supply chain management"
  3. "Scalability solutions for blockchain: sharding, layer-2 protocols, and DAGs"

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