How it works
Transactions are grouped into records that participants can verify without relying on one central database operator. Different networks use different consensus systems, data structures and governance models.
What to check
When evaluating a blockchain, check who can validate transactions, how upgrades are decided, how finality works and what users must trust outside the protocol itself.
- Check validator structure
- Check upgrade governance
- Check finality and trust assumptions
Limits and risks
A blockchain can reduce reliance on one intermediary while introducing software, governance and key-management risks. Decentralization is a spectrum rather than a yes-or-no label.
Primary sources
Bitcoin Developer Reference↗Ethereum developer documentation↗FATF: Virtual Assets↗General information only. Investment products can lose value, and terms, fees and regulation can change.