Question Blockchain 101

cryptopirate said Apr 19, 2023 Edited

Welcome to the new internet! If you liked the old internet, you are going to love it with blockchain technology!Don't worry, it is simple, really: Imagine a spreadsheet on your computer. Imagine many columns and rows, full of numbers. This is basically what a blockchain is. A digital record of numbers, or transactions. We also call this a 'ledger'. Blockchains, publicly share these records with all computers running a software. The same digital record, with the same numbers and transaction. Not only on a single computer, but on many different computers.

This is done, so no-one can change the record because other computers store the same numbers. Everyone who runs the blockchain software can check, if the record is still correct.Bitcoin was the first blockchain and is using this to create digital money.

You can send Bitcoin from A to B and the transaction is recorded on the public record, also called public ledger.Without going into technical details, you can imagine, that this makes it very difficult to change the digital record. It is easy to change a number in a spreadsheet on your computer, but difficult to change them on every computer at the same time.This is really the revolution that comes with blockchain technology. It fundamentally changes how people cooperate, because it creates trust.

Everyone using a blockchain knows that it is very difficult to change the record, because it is stored on many different computers. This solves the trust problem, something that could not be done on the regular internet.So relax, the internet does not bite and neither does blockchain technology. ' Blockchain Technology' or 'Distributed Ledger Technology' are scary words, but really all it means is that all activities are stored on a digital record, shared with many other computers.