The Basics Explained

What is Blockchain?

Imagine a digital ledger (like a spreadsheet) that is duplicated and distributed across thousands of computers. This network is designed to regularly update this spreadsheet.


This is the blockchain. Information held on a blockchain exists as a shared — and continually reconciled — database.

  • Decentralized: No single entity controls it.
  • Immutable: Once data is added, it cannot be changed.
  • Transparent: Anyone can view the transaction history.

What are Wallets?

A crypto wallet doesn't actually store your coins. Instead, it stores the keys (passwords) that give you access to your coins on the blockchain.


Public vs Private Keys

Public Key: Like your email address. You can share this to receive funds.
Private Key: Like your email password. NEVER share this. If you lose it, you lose your funds.

Mining & Validation

How are new coins created and transactions verified? Through mechanisms like Proof of Work (mining) or Proof of Stake (staking).


Computers on the network compete or are selected to solve complex puzzles or validate blocks. In return, they are rewarded with cryptocurrency.