As the foundational technology of Web3, blockchain is essentially a distributed ledger technology. By leveraging decentralisation, blockchain ensures data immutability and transparency. Specifically, a blockchain consists of a series of interconnected “blocks”, each containing a set of transaction records. These blocks are linked together in chronological order, forming a continuous chain. When a new transaction occurs, it is bundled into a new block, which is then verified by miners or validators within the network through solving complex mathematical problems. Once a majority of nodes reach consensus, the new block is added to the blockchain, and this information is permanently stored and cannot be altered.
To better understand how blockchain works, we can use a common analogy: Google Sheets. The concept of a ledger serves as a good starting point—it is a fundamental accounting tool used to track the inflow and outflow of funds within a specific account (such as a bank account).
Blockchain, however, is a distributed ledger, which can be likened to a Google spreadsheet that allows multiple people to view and edit the rows and columns simultaneously. This distributed nature means that everyone can participate, without the need to rely on a centralised authority for management.
Next, we can explore some key characteristics of blockchain:
Permissionless/Trustless: Blockchain is an open network, meaning that anyone with internet access can participate without the need to trust any central authority. It is a permissionless system, allowing users to join the network at any time to verify and record transactions.
Decentralised/Distributed/Democratic: Unlike traditional centralised systems, blockchain is not controlled by a single entity. Instead, it operates through the collaboration of multiple participants, with each node holding a complete copy of the data, ensuring transparency and resistance to censorship.
Immutable: Once data is added to the blockchain, it cannot be altered or deleted. This guarantees the authenticity and integrity of all transactions, preventing anyone from tampering with past records and thereby enhancing trust.
Censorship-resistant: Blockchain relies on a distributed network to store data, making it difficult for any single entity to censor or remove information. This censorship-resistant feature is crucial for protecting freedom of speech and preventing the unjust deletion of data.
Through these features, blockchain functions as a distributed ledger that not only ensures data security and transparency but also provides a decentralised and open platform for internet participants.
For more insights into Web3’s characteristics and its application in social movements, refer to our publication: “Decentralised Data Recording: A Beginner’s Guide to Web3 File Preservation” (Chinese only)
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