What is a Blockchain?
Quick Definition
A blockchain is a distributed digital ledger that records transactions across a network of computers in a secure, transparent, and tamper-resistant way.
Full Definition
A blockchain stores data in chronological blocks, each mathematically linked to the previous one through cryptography. Once recorded, data on a blockchain is extremely difficult to alter without the consensus of the network, making it resistant to fraud and tampering. This property is what enables blockchains to serve as trust-minimized infrastructure for digital assets, smart contracts, and decentralized applications.
Public vs. private blockchains
Blockchains can be public (anyone can participate and view the data) or private (access is restricted to specific parties). Public blockchains provide an unprecedented level of auditability compared to traditional financial record-keeping. Any transaction, balance, or supply change can be independently verified by anyone, at any time.
Private blockchains offer more control but lose much of the transparency that makes the technology valuable. In some cases, they also operate under centralized control. These are usually developed in-house for specific use cases or industries. Examples include Corda (built by R3 specifically for regulated financial institutions), and Quorum (which was originally developed by JPMorgan).
Steady on the blockchain
STDY tokens exist on public blockchain networks, meaning all token balances, rebase events, and transaction history are recorded transparently and verifiably on-chain. Anyone can independently verify their balance and the overall token supply at any time, without needing to rely solely on Steady's reporting. This on-chain transparency is one of the factors that makes Steady auditable in ways that traditional financial instruments simply aren't.
Related Terms
Blockchain Network
ReadA blockchain network is the system of connected participants and infrastructure that validates, records, and maintains data on a specific blockchain.
On-chain
ReadOn-chain refers to processes, transactions, or data that are recorded directly on a blockchain.
Permissionless
ReadPermissionless means anyone can access, use, or build on a system without needing approval from a central authority.
Smart Contract
ReadA smart contract is a self-executing program that runs on a blockchain and automatically enforces the terms of an agreement when specific conditions are met.
Other Glossary Items
Learn about common and essential terms related to Steady and other stablecoin protocols.
Algorithmic Stablecoin
ReadAn algorithmic stablecoin attempts to maintain its value through automated rules that adjust token supply based on market demand, rather than holding equivalent reserve assets.
AML
ReadAML (Anti-Money Laundering) refers to the laws, regulations, and procedures designed to prevent the use of financial systems for laundering the proceeds of crime.
APY
ReadAPY, or Annual Percentage Yield, is the standardized rate of return an asset generates over a year, including the effect of compounding.
Arbitrum
ReadArbitrum is a Layer 2 blockchain network built on top of Ethereum, designed to offer faster and cheaper transactions while inheriting Ethereum's security and infrastructure.
Asset Backing
ReadAsset backing refers to the real-world or on-chain assets held by the issuer to support the value of every token in circulation.
Asset Locking
ReadAsset locking refers to restricting access to funds for a defined period or condition, during which they cannot be transferred or used.
Asset Segregation
ReadAsset segregation is the practice of keeping client or backing assets separate from the issuer's operational funds, protecting them from the issuer's other obligations.
Audit
ReadAn audit is an independent examination of a protocol's code, reserves, or operations by qualified third parties to verify accuracy and compliance with stated claims.
Backing
ReadBacking refers to the assets or mechanisms that support a stablecoin's value and help it maintain its intended reference value.
Bridge
ReadA bridge is a mechanism that enables the transfer of assets or data between different blockchain networks.
Clarity Act
ReadThe Clarity Act is a proposed US legislative framework intended to clarify the regulatory treatment of digital assets, defining when they should be treated as securities versus commodities.
Collateralization / Over-collateralization
ReadCollateralization refers to the ratio between the value of assets held in reserve and the value of tokens issued. Over-collateralization means holding more in reserves than the value of tokens issued.
Composability
ReadComposability refers to the ability of different protocols, contracts, and tokens on a blockchain to interact and combine with each other seamlessly.
Counterparty Exposure
ReadCounterparty exposure refers to the risk that another party, such as a bank, custodian, broker, or service provider fails to fulfill its obligations, potentially affecting the assets or funds it holds.
Custodial vs. Non-Custodial
ReadCustodial means a third party holds the private keys to your assets on your behalf. Non-custodial means you hold your own keys and control your own assets directly.
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