A novel blind channel estimation method based on a simple coding scheme for a 2 by 2 multiple input multiple output (MIMO) system is described. The proposed algorithm is easy to implement in comparison with conventional blind estimation algorithms, as it is able to recover the channel matrix without performing singular value decomposition (SVD) or eigenvalue decomposition (EVD). The block coding scheme accompanying the proposed estimation approach requires only a block encoder at the transmitter without the need of using the decoder at the receiver. The proposed block coding scheme offers the full coding rate and reduces the noise power to half of its original value. It eliminates the phase ambiguity using only one additional pilot sequence.