This content is for educational purposes only and is not financial advice. bunq doesn't give trading advice. Always do your own research or consult a qualified financial advisor before making any investment decisions. Cryptocurrency investments come with risks, including the potential loss of the principal invested. Prices can fluctuate significantly. bunq Crypto is powered by our partner Kraken.

A blockchain is a shared digital ledger that records transactions in order, across a network of computers. It's the foundation behind Bitcoin, Ethereum, and most cryptocurrencies, designed so no single party controls the data, and past records are extremely hard to change.

How blockchain works

Transactions are grouped into blocks. Each block links to the previous one, forming a chain. Before a block is added, network participants verify the transactions inside it using rules built into the protocol.

Once confirmed, a block becomes part of the permanent record. Altering old data would require changing every subsequent block across the majority of the network, computationally impractical on large, decentralized chains.

Why blockchain matters

Traditional finance relies on central ledgers kept by banks. Blockchain distributes that ledger so anyone can audit it, while cryptography keeps individual accounts secure.

Beyond payments, blockchains support smart contracts, tokens, and decentralized apps, powering everything from DeFi to NFTs. Different networks trade off speed, cost, and decentralization in different ways.

Blockchain and bunq

You don't need to understand blockchain mechanics to use crypto at bunq. Buy and sell digital assets in the app; the underlying ledger technology is handled by our partner Kraken. For everyday money, bunq's licensed Bank Accounts work in euros with full deposit protection.

Ready to explore? Visit bunq Crypto or learn how investments fit alongside crypto in your financial picture.

Frequently asked questions

Is blockchain the same as Bitcoin?

No. Blockchain is the technology; Bitcoin is one application of it. Many other cryptocurrencies and platforms use their own blockchains.

Are blockchain transactions anonymous?

Most public blockchains are pseudonymous, addresses are visible, but not always tied to real-world identities. Privacy varies by network and how you use it.

Can blockchain records be deleted?

Generally no. Immutability is a core feature. Mistaken transactions usually cannot be reversed once confirmed.