A blockchain performs various functions which are supported by various features.
These functions include but are not limited to transfer of value, managing assets and agreements.
How Features of a blockchain Works
All of the blockchain tiers described in the previous section perform these functions with the help of features offered by blockchain, but with some exceptions.
For example, smart contracts are not supported by all blockchain platforms, such as Bitcoin.
Another example is that not all blockchain platforms produce cryptocurrency or tokens, such as Hyperledger Fabric, and MultiChain.
The features of a blockchain are described here: Distributed consensus: Distributed consensus is the primary underpinning of a blockchain.
This mechanism allows a blockchain to present a single version of the truth, which is agreed upon by all parties without the requirement of a central authority.
Transaction verification: Any transactions posted from the nodes on the blockchain are verified based on a predetermined set of rules.
Why This Matters for Blockchain Technology
Only valid transactions are selected for inclusion in a block.
Platform for smart contracts: A blockchain is a platform on which programs can run to execute business logic on behalf of the users.
Not all blockchains have a mechanism to execute smart contracts; however, this is a very desirable feature, and it is available on newer blockchain platforms such as Ethereum and MultiChain.
Smart Contracts Blockchain technology provides a platform for running smart contracts.
Key Points to Remember
- Features of a blockchain A blockchain performs various functions which are supported by various features.
- These functions include but are not limited to transfer of value, managing assets and agreements.
- All of the blockchain tiers described in the previous section perform these functions with the help of features offered by blockchain, but with some exceptions.
- For example, smart contracts are not supported by all blockchain platforms, such as Bitcoin.
Going Deeper: Advanced Concepts
These are automated, autonomous programs that reside on the blockchain network and encapsulate the business logic and code needed to execute a required function when certain conditions are met.
For example, think about an insurance contract where a claim is paid to the traveler if the flight is canceled.
In the real world, this process normally takes a significant amount of time to make the claim, verify it, and pay the insurance amount to the claimant (traveler).
What if this whole process were automated with cryptographically-enforced trust, transparency, and execution so that as soon as the smart contract received a feed that the flight in question has been canceled, it automatically triggers the insurance payment to the claimant?
Conclusion
Features of a blockchain represents one of the many innovative layers that make blockchain technology so powerful and transformative. As distributed systems continue to evolve, a solid understanding of these core concepts becomes increasingly valuable — not just for developers, but for anyone building, investing in, or working alongside blockchain-powered systems.
Whether you are just starting your blockchain journey or deepening existing expertise, mastering these fundamentals gives you the tools to think clearly about decentralized systems and make smarter decisions in this rapidly evolving space.