A blockchain consists of blocks. Blocks are made up of digital information. They contain 3 things:
- Transaction information: The date, time, location, and amount of a transaction.
- Involved parties: Who sent the money and who received the money?
- The hash: Each block contains a hash. It’s a unique code that allows us to distinguish the individual blocks from each other.
(Note: In the case of blockchains, there is no personally identifying information. You are represented by a random string of characters within the ledger).
Each block has a set size. When it’s full, it’s added onto the end of the previous blocks, hence the name “blockchain.”