10.1 What Is Blockchain?

A blockchain is a distributed digital ledger that records transactions across many computers in a way that makes it virtually impossible to alter or hack. Instead of storing data in a single location, blockchain distributes identical copies of the data across a network of computers called nodes.

Each block in the chain contains a set of transactions. When a new block is created, it includes a cryptographic reference to the previous block, creating an unbreakable chain. This structure ensures that once a transaction is recorded, it cannot be modified without altering every subsequent block, which would require controlling more than half of the network.

Blockchain technology was introduced in 2008 as the underlying technology for Bitcoin, but it has since been adopted for many other applications including stablecoins like USDT and USDC.

When you trade USDT or USDC on CryptoBazaar, the transfer of stablecoins happens on a blockchain. Understanding the basics of blockchain helps you understand why crypto transfers work the way they do.

Blockchain provides transparency. Every transaction is publicly recorded and can be verified by anyone using a block explorer. When you send USDT, the transaction is visible on the blockchain within seconds.

Blockchain provides security. Once a transaction is confirmed on the blockchain, it cannot be reversed or altered. This is why releasing crypto from escrow is final. There is no chargeback mechanism for blockchain transactions.

Blockchain operates 24/7 without any downtime. Unlike banks that have business hours and maintenance windows, blockchain networks process transactions continuously.