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Define and explain a blockchain

Hello. I know that blockchain is the technology behind Bitcoin and other cryptocurrencies, but I don't know how exactly it works. Could someone explain to me the basics of blockchain? How does it work and what are its potential use cases? Thanks in advance cryptoboy

Hello. I know that blockchain is the technology behind Bitcoin and other cryptocurrencies, but I don't know how exactly it works. Could someone explain to me the basics of blockchain? How does it work and what are its potential use cases? Thanks in advance cryptoboy

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8 answers


MatCussac

Blockchain technology provides distributed public ledgers that hold fixed data in a secure and encrypted way and guarantee that transactions can never be altered. While Bitcoin and other cryptocurrencies are the most popular examples of blockchain usage, this “distributed ledger technology” (DLT) has a wide range of applications . For example data storage, financial transactions, real estate, asset management and many more uses are found.

 

Blockchain technology provides distributed public ledgers that hold fixed data in a secure and encrypted way and guarantee that transactions can never be altered. While Bitcoin and other cryptocurrencies are the most popular examples of blockchain usage, this “distributed ledger technology” (DLT) has a wide range of applications . For example data storage, financial transactions, real estate, asset management and many more uses are found.

 


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Andi

Blockchain is a Distributed Ledger Technologies (DLT) technology that relies on a distributed ledger on multiple computers called nodes. Blockchain monitors and verifies transactions informing a decentralized network of volunteer managed nodes to verify account balances by creating blocks. The network algorithm ensures that each transaction is unique and irreversible. 

 

Blockchain is a Distributed Ledger Technologies (DLT) technology that relies on a distributed ledger on multiple computers called nodes. Blockchain monitors and verifies transactions informing a decentralized network of volunteer managed nodes to verify account balances by creating blocks. The network algorithm ensures that each transaction is unique and irreversible. 

 


Dawid Wośniowski

The blockchain technology can be characterized as a digital book of transactions. With the help of this solution it is possible to record and store information about transactions conducted on the Internet. It can be a transaction of purchase of currency (or cryptocurrency, with which at present blockchain is most often identified), trade, ownership, sale or purchase of generated electricity, shares, etc.

A characteristic feature of blockchain technology is decentralization. In order for the system to function, you do not need a central computer or other main infrastructure element. All transaction data is saved by individual users among themselves, without the central system. The information is stored in consecutive blocks of data.

Each block can contain data on a specific number of transactions. When it is filled, the next one is created, which follows it. This creates a kind of chain, which explains the origin of the name of this technology.

The blockchain technology can be characterized as a digital book of transactions. With the help of this solution it is possible to record and store information about transactions conducted on the Internet. It can be a transaction of purchase of currency (or cryptocurrency, with which at present blockchain is most often identified), trade, ownership, sale or purchase of generated electricity, shares, etc.

A characteristic feature of blockchain technology is decentralization. In order for the system to function, you do not need a central computer or other main infrastructure element. All transaction data is saved by individual users among themselves, without the central system. The information is stored in consecutive blocks of data.

Each block can contain data on a specific number of transactions. When it is filled, the next one is created, which follows it. This creates a kind of chain, which explains the origin of the name of this technology.


dryer923

Blockchain is simply referred to as a chain of blocks. However, this phrase should not be interpreted literally. It was created to illustrate what this technology actually is. In fact, understanding Blockchain's nature from a layman's point of view is quite difficult. Using simplified terminology, when we talk about so-called blocks, we actually mean digital information placed in a public database - a chain of blocks. We already know what is literally hidden under the terms block and chain. Now it only remains to explain what role both of these elements play? Let's start with the blocks whose task is to store transaction-related information such as date, time, or amount. The transaction participant is identified with a special digital signature. Each block stores a number of completely different (different from each other) information. Additionally, they have a unique (unique) code called a hash, which allows us to distinguish one block from another. It is worth knowing that a single block in a chain of Bitcoin (BTC) blocks holds up to 1 MB of data. This means that it can store several thousand transactions, depending on their size.

Blockchain is simply referred to as a chain of blocks. However, this phrase should not be interpreted literally. It was created to illustrate what this technology actually is. In fact, understanding Blockchain's nature from a layman's point of view is quite difficult. Using simplified terminology, when we talk about so-called blocks, we actually mean digital information placed in a public database - a chain of blocks. We already know what is literally hidden under the terms block and chain. Now it only remains to explain what role both of these elements play? Let's start with the blocks whose task is to store transaction-related information such as date, time, or amount. The transaction participant is identified with a special digital signature. Each block stores a number of completely different (different from each other) information. Additionally, they have a unique (unique) code called a hash, which allows us to distinguish one block from another. It is worth knowing that a single block in a chain of Bitcoin (BTC) blocks holds up to 1 MB of data. This means that it can store several thousand transactions, depending on their size.


leomessi

Blockchain is a technology that is used to store and transmit information about transactions concluded on the Internet. These transactions are arranged in the form of consecutive data blocks. Each block contains information about a specifically defined number of transactions.

Blockchain is a technology that allows to document business transactions as orders or crypto trading. It works similarly to a cash register in the analog world: all transactions taking place at a certain time are saved in a file called a block. Just like on a page in the cash book, the space in the block allows to save a certain number of transactions. If there is a new transaction, all the blocks of data generated so far are needed. These are connected to each other using encryption technology. This creates a constantly growing chain of data blocks - blockchain.

The blockchain can be used to handle various transactions such as trading, currencies, stocks, electricity market. However, work is in progress on using blockchain as an accounting book in banking, document authentication system, digital signature in state administration and notarial recording.

Transactions and their order are resistant to forgery and all kinds of manipulation. If someone tries to cheat or introduce an unauthorized transaction, blockchain nodes in the verification and reconciliation process will discover that one copy of the book contains a transaction that is not compatible with the records. Then they refuse to include it in the blockchain

 

Blockchain is a technology that is used to store and transmit information about transactions concluded on the Internet. These transactions are arranged in the form of consecutive data blocks. Each block contains information about a specifically defined number of transactions.

Blockchain is a technology that allows to document business transactions as orders or crypto trading. It works similarly to a cash register in the analog world: all transactions taking place at a certain time are saved in a file called a block. Just like on a page in the cash book, the space in the block allows to save a certain number of transactions. If there is a new transaction, all the blocks of data generated so far are needed. These are connected to each other using encryption technology. This creates a constantly growing chain of data blocks - blockchain.

The blockchain can be used to handle various transactions such as trading, currencies, stocks, electricity market. However, work is in progress on using blockchain as an accounting book in banking, document authentication system, digital signature in state administration and notarial recording.

Transactions and their order are resistant to forgery and all kinds of manipulation. If someone tries to cheat or introduce an unauthorized transaction, blockchain nodes in the verification and reconciliation process will discover that one copy of the book contains a transaction that is not compatible with the records. Then they refuse to include it in the blockchain

 


galaxy20

The word "blockchain" (chain of blocks) is commonly associated with the bitcoin cryptocurrency. It was thanks to it that the effectiveness of the idea, which has its roots in concepts developed by cryptography specialists since the 1970s, was tested in practice for the first time. Regardless of how one assesses the effectiveness of bitcoin as a payment tool and a specific type of money, it can be said that the underlying transaction register has passed the test - it ensures the secure functioning of the scheme, which does not have an entity acting as a clearing centre.

Many of the institutions we use every day can be called 'data custodians'. An example can be a bank storing our money in a non-cash form. We entrust funds to it, trusting that it will be able to safely and flawlessly settle the transactions ordered to it. The bank keeps a database to which only it has access. Whenever we pay by card, the bank takes care of the whole process of exchanging information with other institutions - card organisations, clearing agents, etc. The whole scheme is based on limited trust and the databases (e.g. transactions) are closed, guarded against outside access. "The guardians" in such a scheme enjoy a special position, becoming monopolists who benefit from the trust placed in them by their clients or from their unique position under the law (as is the case, for example, with registers kept by credit information databases).

The blockchain is a specific way of recording data - unlike 'classic' databases it has a distributed character (it is not controlled by a single 'guard') and ensures the invariability of once entered information and a mechanism of validation (checking) of added data along with a way of reaching consensus when several inconsistent records appear. 

The word "blockchain" (chain of blocks) is commonly associated with the bitcoin cryptocurrency. It was thanks to it that the effectiveness of the idea, which has its roots in concepts developed by cryptography specialists since the 1970s, was tested in practice for the first time. Regardless of how one assesses the effectiveness of bitcoin as a payment tool and a specific type of money, it can be said that the underlying transaction register has passed the test - it ensures the secure functioning of the scheme, which does not have an entity acting as a clearing centre.

Many of the institutions we use every day can be called 'data custodians'. An example can be a bank storing our money in a non-cash form. We entrust funds to it, trusting that it will be able to safely and flawlessly settle the transactions ordered to it. The bank keeps a database to which only it has access. Whenever we pay by card, the bank takes care of the whole process of exchanging information with other institutions - card organisations, clearing agents, etc. The whole scheme is based on limited trust and the databases (e.g. transactions) are closed, guarded against outside access. "The guardians" in such a scheme enjoy a special position, becoming monopolists who benefit from the trust placed in them by their clients or from their unique position under the law (as is the case, for example, with registers kept by credit information databases).

The blockchain is a specific way of recording data - unlike 'classic' databases it has a distributed character (it is not controlled by a single 'guard') and ensures the invariability of once entered information and a mechanism of validation (checking) of added data along with a way of reaching consensus when several inconsistent records appear. 


Katia

BLOCKCHAIN ??? To know it, is like learning another language.

You will need to be eaare of many acronyms that engineers, founders, and venture capitalists said on podcasts, reading Coinbase articles about tokens, four digital wallets, minting, NFT and mch more... Many call this the age of digital ownership “Web3.” This is different from “Web1”, which refers to reading content like a catalog on Netscape and AOL, and “Web2” where people could “read + create” content on Facebook, YouTube and more. Web 3 is now “read + create + own,” powered by blockchain technology.

Internet of digital ownership, secured by blockchain technology. What surprises about crypto is that it’s about much more than digital money. There are the cryptocurrencies like Bitcoin and Ethereum. But crypto is a way of direct exchange of digital assets without an intermediary, making the transaction happen. The assets exchanged this way have a unique block of software code stored on a decentralized record of transactions and this is exactly called a blockchain. Blockchain proves ownership of things like money, but also digital goods like NFT, or a non fungible tokens. All theses stands for unique and unchangeble. These assets may be art, music, game characters, basketball cards, personal information, or mortgages.

Blockchian is decentralized, since the transaction of value doesn’t rely on a person or institution to facilitate. Pure technology allow that without bank accounts anyone can access money without a bank intermediary or ATM. Or, that they can play a game or learn more about a particular topic, and can get instantly compensated for their efforts. Or, that countries and institutions can track commodities exchanges that haven’t been transparent or traceable, like carbon credits. These are all real-world use cases that are happening on the blockchain.

Same with the Chia blockchain, which has 160,000 nodes operating the network around the world, and its own cryptocurrency of value (XCH). These are all different “Layer 1” decentralized blockchains, the technical infrastructure off of which other things can be built. “The Blockchain” is a confusing term. There are multiple blockchains that correspond to their cryptocurrencies. For example, Bitcoin has its own blockchain technology—secured by thousands of computers, or “nodes” running code—and its own corresponding stored value called Bitcoin. Ethereum is a different blockchain technology, with its own separate cryptocurrency, Ethereum.

Because Layer 1 (L1) security often comes at the expense of slow speeds and high transaction costs, Layer 2 solutions are built on top of Layer 1 blockchains to scale each network. Lastly, there are Layer 3 decentralized applications (DApps) built on top of Layer 1s, which end consumers are starting to use for decentralized finance and gaming. These include wallets, games, metaverses, NFT marketplaces, and more. You may want to google more about this.

The easiest way to understand blockchian is to Invest in cryptocurrency: exchanging USD (fiat) for a crypto currency on an exchange like Coinbase, FTX or Gemini. Set up tax tracking software like Cointracker.io

Or, purchase NFT: Create a Metamask wallet, purchase some Ethereum (ETH), and connect your wallet to OpenSea, an NFT marketplace. You can try this on a variety of other NFT marketplaces as well.

Stay actove on Twitter as it is the hub for cryptocurrency news. Start researching and following crypto influencers and organizations. This space changes so quickly that it may seem impossible to know where to start and how to keep up. Focus on what you’re interested in, and balance offline self-care with screen-heavy learning.

BLOCKCHAIN ??? To know it, is like learning another language.

You will need to be eaare of many acronyms that engineers, founders, and venture capitalists said on podcasts, reading Coinbase articles about tokens, four digital wallets, minting, NFT and mch more... Many call this the age of digital ownership “Web3.” This is different from “Web1”, which refers to reading content like a catalog on Netscape and AOL, and “Web2” where people could “read + create” content on Facebook, YouTube and more. Web 3 is now “read + create + own,” powered by blockchain technology.

Internet of digital ownership, secured by blockchain technology. What surprises about crypto is that it’s about much more than digital money. There are the cryptocurrencies like Bitcoin and Ethereum. But crypto is a way of direct exchange of digital assets without an intermediary, making the transaction happen. The assets exchanged this way have a unique block of software code stored on a decentralized record of transactions and this is exactly called a blockchain. Blockchain proves ownership of things like money, but also digital goods like NFT, or a non fungible tokens. All theses stands for unique and unchangeble. These assets may be art, music, game characters, basketball cards, personal information, or mortgages.

Blockchian is decentralized, since the transaction of value doesn’t rely on a person or institution to facilitate. Pure technology allow that without bank accounts anyone can access money without a bank intermediary or ATM. Or, that they can play a game or learn more about a particular topic, and can get instantly compensated for their efforts. Or, that countries and institutions can track commodities exchanges that haven’t been transparent or traceable, like carbon credits. These are all real-world use cases that are happening on the blockchain.

Same with the Chia blockchain, which has 160,000 nodes operating the network around the world, and its own cryptocurrency of value (XCH). These are all different “Layer 1” decentralized blockchains, the technical infrastructure off of which other things can be built. “The Blockchain” is a confusing term. There are multiple blockchains that correspond to their cryptocurrencies. For example, Bitcoin has its own blockchain technology—secured by thousands of computers, or “nodes” running code—and its own corresponding stored value called Bitcoin. Ethereum is a different blockchain technology, with its own separate cryptocurrency, Ethereum.

Because Layer 1 (L1) security often comes at the expense of slow speeds and high transaction costs, Layer 2 solutions are built on top of Layer 1 blockchains to scale each network. Lastly, there are Layer 3 decentralized applications (DApps) built on top of Layer 1s, which end consumers are starting to use for decentralized finance and gaming. These include wallets, games, metaverses, NFT marketplaces, and more. You may want to google more about this.

The easiest way to understand blockchian is to Invest in cryptocurrency: exchanging USD (fiat) for a crypto currency on an exchange like Coinbase, FTX or Gemini. Set up tax tracking software like Cointracker.io

Or, purchase NFT: Create a Metamask wallet, purchase some Ethereum (ETH), and connect your wallet to OpenSea, an NFT marketplace. You can try this on a variety of other NFT marketplaces as well.

Stay actove on Twitter as it is the hub for cryptocurrency news. Start researching and following crypto influencers and organizations. This space changes so quickly that it may seem impossible to know where to start and how to keep up. Focus on what you’re interested in, and balance offline self-care with screen-heavy learning.


OpenAI BOT

A blockchain is a decentralized, distributed ledger technology that securely records data across a network of computers. Each block in the chain contains a number of transactions, and every time a new transaction occurs, a record of that transaction is added to every participant's ledger. This creates a secure, transparent, and immutable record of all transactions taking place on the network. Blockchain technology uses cryptography to ensure that transactions are secure and cannot be altered. This makes it ideal for a wide range of applications beyond cryptocurrencies, including supply chain management, voting systems, and healthcare records. The decentralized nature of blockchain also means that there is no single point of failure, making it highly resistant to hacking and fraud. Overall, blockchain has the potential to revolutionize how data is stored and shared, offering increased transparency, security, and efficiency in a wide range of industries.

A blockchain is a decentralized, distributed ledger technology that securely records data across a network of computers. Each block in the chain contains a number of transactions, and every time a new transaction occurs, a record of that transaction is added to every participant's ledger. This creates a secure, transparent, and immutable record of all transactions taking place on the network. Blockchain technology uses cryptography to ensure that transactions are secure and cannot be altered. This makes it ideal for a wide range of applications beyond cryptocurrencies, including supply chain management, voting systems, and healthcare records. The decentralized nature of blockchain also means that there is no single point of failure, making it highly resistant to hacking and fraud. Overall, blockchain has the potential to revolutionize how data is stored and shared, offering increased transparency, security, and efficiency in a wide range of industries.


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