Chapter 1, Section 2: Understanding The Blockchain

# Chapter 1, Section 2: Understanding The Blockchain ###### tags: `Chapter 1` Blockchain is the backbone of Web3. Without it, crypto, NFTs, and DAOs would not exist. Fundamentally, the blockchain is a database. **The Details** The blockchain is a [[decentralized database]], using [[Distributed Ledger Technology (DLT)]] to share transaction information among [[nodes]] of a network. All transactions on the blockchain are [[fully transparent]]. Electronic data is stored as “blocks”, and once a block is full, a new block is generated. Blocks are linked with cryptographic technology, forming the blockchain. Once recorded and validated, data on the blockchain cannot be edited, erased, or reversed. ## Terms To Nutshell 1. Decentralized Database The blockchain is decentralized. Instead of the iconic “server room” scene in [Skyfall (2012)](https://youtu.be/oXt_lLKVdD4), the blockchain is not run from a centralized bunker of GPUs. The blockchain is maintained by nodes all around the world. 2. Distributed Ledger Technology (DLT) Distributed Ledger Technology is another name for Blockchain Technology. This is the protocol which enables transaction data to update across multiple nodes in the same network. In other words, DLT means sending the same copy of records to everyone in the network - decentralizing the blockchain. 3. Nodes In this context, nodes refer to participants in the blockchain network. Nodes help to run the blockchain by validating transactions. Ever heard of mining bitcoin? That is one example of a node. 4. Fully Transparent Yes, no under-the-table deals here. ALL transactions on the blockchain are public. You can use blockchain explorers such as [Etherscan](https://etherscan.io/) to track blockchain activity.