In order to understand what is the Blockchain, one must first understand how the traditional Internet works. We know that the Internet allows us to transfer information to anyone with the use of web cams or private networks like VPN’s. What many do not realize, however, is that the Internet also includes a decentralized ledger called the block chain. The block chain is an algorithmically self-sustaining ledger, which keeps track of all transactions that have ever been made in the history of the Internet.
A Blockchain is fundamentally a replicated and self-sustaining ledger of digital transactions that are duplicated across the entire network of computers on the entire chain. Each block in the ledger has a certain number of unconfirmed transactions, and each time a new transaction takes place on the Blockchain, a new record of that transaction is inserted into every participant’s ledger. At every point in time, half of all blocks contain more unconfirmed transactions than the other half. The network uses the balancing effect of having most of the blocks with unconfirmed transactions and leaves the remaining half with confirmed transactions. This is why the ledger is called “blockchain”.
However, it is important to understand that although the ledger is called “blockchain”, the ledger and the transactions it is comprised of are not stored on a single hard drive, like a traditional computer file. Rather, the blocks are divided up into “differing” groups, and each group of blocks corresponds to an electronic address. This electronic address is assigned to each user of the system. In turn, each transaction consists of a specific destination, which is a specific computer within the network that the transaction will be sent to. These transactions occur with the use of digital signatures.
There are two ways in which users of the ledger can validate the transactions they are making. They can validate their own transactions by viewing their digital signature, or they can ask other users for validation. The latter method is often referred to as ” miners”, because of the role that they play in validating thechain. miners ensure that no double-spending occurs because of incorrect IP addresses and other security measures. Validating transactions is also done by the network administrator.
Unlike the conventional method of secure computer technology, this form of currency doesn’t rely on a single server. Instead, the ledger is hosted on a number of different computers around the world. When a transaction occurs, it is processed not from the location where the transaction was received, but from wherever the user is. This is called distributed computing. And distributed computing refers to the fact that the work being done on the Blockchain happens the same everywhere, not just where the ledger is located.
So how does the Blockchain help us? Well, because it is a decentralized transaction based ledger, everyone who owns a certain amount of the tokens (the tokens themselves) have a vote. And every single transaction that goes on needs to be recorded, updated, and confirmed by a majority of the total participants in the ecosystem. Because this process is decentralized, it is safe from censorship and other harmful outside influences.
The most interesting aspect about the Blockchain is that it makes all these transactions happen faster and cheaper. It is called blocks, which are really just individual ledgers. A particular ledger might be called “the ledger” and it would be followed by block after block, each of which contains a specific transaction. These blocks are also stored in multiple computers around the world.
The next phase of development for the Blockchain is called “proofing”. What this means is that a certain number of randomly chosen individuals will get involved with the production of blocks. Once these people agree to make a block, it becomes a “soft proof”, i.e. a block that has all the essential characteristics of a true valid Blockchain. Once this happens, everyone can rest assured that the Blockchain they are using is a true one. This is the first step towards the future of the World Wide Web.