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What is Blockchain?
Top 5 Things You Need to Know


Consensus is the idea that a predetermined set of data on Computer A could be guaranteed to be the same—or consistent with—another predetermined set of data on Computer B.

Computer A would know its own directory structure and contents, as well as that of Computer B. To achieve consensus, changes on one computer would propagate to the other.


A cryptocurrency is an application of the blockchain; it is not a blockchain itself.

Distributed Ledger

A distributed ledger is a database that is consensually shared and synchronized acrosås multiple sites, institutions, or geographies, accessible by multiple people. It allows transactions to have public "witnesses".

Mining Cryptocurrency

Most cryptocurrencies have third-party computers that validate transactions. They reward the validators with some cryptocurrency. In this way, a validator has a chance of taking a cut of a transaction.


This is a form of storing data.

Proof of Work

An earlier version of blockchain validation.

Proof of Stake

A version of validation which requires less energy consumption.


Third party computers used to validate cryptocurrency transactions, which minimizes the ability of users to defraud the system.

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