DeFi Intel

What is Blockchain?

Plain-English explainer · Updated 2026-05-03 · By DeFi Intel

Last reviewed 2026-05-03

Used by: Bitcoin, NEAR, Aptos, Sui, Canton Network

Entity coverage: 2 protocols, 0 tokens, 8 chains reference this concept.

A blockchain is a replicated append-only ledger maintained by a network of nodes that agree on transaction order via a consensus protocol. Each block cryptographically links to its predecessor, making history tamper-evident.

How it works

A user signs a transaction with their private key and broadcasts it to the peer-to-peer network. Each node checks the signature, nonce, and balance, then holds the transaction in its mempool.

A block producer — a miner under proof-of-work, a selected validator under proof-of-stake — orders pending transactions into a candidate block. The block header commits to two things: the hash of the previous block and a Merkle root summarizing every transaction inside. In proof-of-work the producer must find a nonce whose block hash meets the network's difficulty target; in proof-of-stake the proposer's block is attested to by other validators.

The new block propagates across the network, and every full node independently re-executes its transactions against the protocol rules before appending it and updating its copy of the state — balances and contract storage — deterministically. Because each block embeds its parent's hash, altering an old transaction would change every hash after it and be rejected instantly; as blocks accumulate on top ("confirmations") or a finality gadget votes, reversing history becomes practically impossible.

Why it matters

Blockchains enable trust-minimized transfer of value, agreements, and data without a central operator. They underpin every other term in this glossary.

Real-world examples

Bitcoin (settlement), Ethereum (smart contracts), Solana (high-throughput), Cosmos chains (sovereign apps), Bitcoin L2s (Stacks).

Related terms

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Frequently asked questions

What is a blockchain in simple terms?

A blockchain is a replicated append-only ledger maintained by a network of nodes that agree on transaction order via a consensus protocol. Each block cryptographically links to its predecessor, making history tamper-evident.

How does a block get added to a blockchain?

A block producer orders pending transactions into a candidate block, which commits to the hash of the previous block and a Merkle root. The new block propagates across the network, and every full node independently re-executes its transactions before appending it.

What real-world examples of blockchains are mentioned?

Real-world examples include Bitcoin (settlement), Ethereum (smart contracts), Solana (high-throughput), Cosmos chains (sovereign apps), and Bitcoin L2s (Stacks).

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