What is a Blockchain?

The following information is for educational purposes only and does not constitute an endorsement of this type of cryptocurrency. Consider seeking tax and financial advice from licensed professionals. The cryptocurrency service is currently available to PayPal Balance accounts and certain eligible US-based business account holders only.

Visit Discover Crypto for more information.

Blockchain is the underlying technology that powers each crypto. Blockchain is essential to making crypto work as a virtual currency. Since crypto is a digital asset, or computer-generated file, anyone can make it and replicate it. Blockchain provides the digital record to verify things like whether the sender has enough bitcoins for a transaction, or to make sure the same bitcoins aren't being spent twice.

At its most simple, you can think of the blockchain as a shared ledger that records every time someone sends or receives a crypto coin.

It has a security system    

Blockchains store data using very complex math, or "encryption," which makes it nearly impossible to corrupt or change the transaction records.    

It's decentralized    

Each blockchain runs simultaneously on a network of multiple computers around the world rather than just one central computer.   

Direct peer-to-peer payments    

Typically, you'd use a bank, or other central authority, to conduct and authorize a transaction. But blockchain lets you pay or get paid directly.    

Future potential    

Blockchains can be used to store or send any digital asset, whether that's bitcoins or the next great novel saved on a Microsoft Word file. As you can imagine, blockchains could change how we vote, manage medical records, buy homes, or even track where our food comes from in the future. Crypto is just the beginning.

Worth searching to learn more about Blockchain: 

• How does Blockchain work? 
• What are the different types of Blockchains?
• Blockchain beyond Crypto