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Chains: How Entries are Organized into Chains<br />
Chains in <strong>Factom</strong> are sequences of Entries that reflect the events relevant to an Application.<br />
These sequences are at the heart of Bitcoin 2.0. Chains document these event sequences and<br />
provide an audit trail recording that an event sequence occurred. <strong>With</strong> the addition of<br />
cryptographic signatures, those events would be proof they originated from a known source.<br />
Chains are logical interpretations of data placed inside Directory Blocks and Entry Blocks. The<br />
Directory Blocks indicate which Chains are updated, and the Entry Blocks indicate which Entries<br />
have been added to the Chain. This is somewhat analogous to how Bitcoin full clients maintain<br />
a local idea of the UTXO (Unspent Transaction Output) set. The UTXO set is not (currently) in<br />
the blockchain itself, but is interpreted by the full client.<br />
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