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Blockchain, the underlying technology that powers bitcoin, is one of the buzzwords of the past year. Practically everyone is talking about blockchain, and for good reason. Distributed ledgers, the term of art for blockchain’s underlying technology, offer an exciting new way to transact business without a central authority. Here’s a nontechnical, simplified description of the component parts.

Blockchain defined

A blockchain, or distributed ledger, is a continuously growing list (digital file) of encrypted transactions called “blocks” that are distributed (copied) to a peer-to-peer (P2P) network of computers.

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