Block

A Block, in its simplest form, is a collection of digital data.

Blockchain transactions are grouped into blocks.

Think of a block as a folder on your computer that contains a bunch of files that can be opened and viewed by anyone, at any time.

The files themselves are the individual transactions that occur over some interval of time on the blockchain.

Each file contains the who, what, when, where, and why of the current transactions, as well as information about the block previous to the current one.

That’s where the term blockchain comes from.

Each block is linked to the previous block so that transactional data can be confirmed as accurate and not tampered with.

Technically speaking, blocks contain transaction timestamps and checks to make sure digital asset balances aren’t spent more than once and that digital signatures match public keys of the message.

This recorded data is permanent and public.

Blocks are added to the blockchain by validators or miners, who are given a chance to verify and confirm network transactions using various methods depending on their networks’ consensus mechanism.

If they are chosen, validators and miners receive a reward for their work.

Related Terms

Genesis Block

The very first block or first few blocks recorded on a blockchain or blockchain-based protocol. The genesis block is often called Block 0 or Block 1. The genesis block sets the foundation for the rest of the blocks that are added to form a chain of blocks. That’s where we get the word “blockchain”. The most famous genesis block, and the very first Bitcoin block, called the Genesis Block, was created on January 3rd, 2009, by Bitcoin’s infamous and mysterious creator, Satoshi Nakamoto. Some consider this date to be the start of the cryptocurrency revolution – the start of it all!

Blockchain

Blockchain networks are at the heart of cryptocurrencies. A blockchain is a database, or digital ledger, made up of a series of interconnected blocks containing transaction data created on the network over some period of time. Each block in a blockchain also contains a unique identifier unlike any other block in the chain called a hash. Think of the hash as a fingerprint identifying that block for all other blocks. Distributed ledger technology (DLT) is another name frequently used in relation to blockchains.

Validator

Much like miners in a Proof-of-Work(PoW) network, they are network nodes that operate in Proof of Stake (PoS) blockchains, also validating transaction blocks to the blockchain. Validators are generally picked at random, based on the amount of cryptocurrency they are willing to stake or lock up in a smart contract, to win the rights to validation. This is different than the competition-style mechanism like Proof-of-Work (PoW)

Bitcoin (BTC)

Bitcoin (BTC) is most well known as a digital decentralized cryptocurrency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer Bitcoin network without the need for intermediaries, such as payment gateways or banks or routing services. Think of bitcoin as Internet money, that you can send and receive directly, to and from anyone, and you can use it to pay for stuff.

Block Reward

Incentives or prizes given to miners after they use their computing resources to successfully validate a new block of transactions and add them to the blockchain.