Notes

A Brief Introduction To Blockchain - For Normal People
Crypto-what?
If you've attempted to dive into this mysterious thing called blockchain, you would be forgiven for recoiling in horror at the sheer opaqueness of the technical jargon that's often used to frame it. So before we get into just what a crytpocurrency is and how blockchain technology might change the world, let's discuss what blockchain happens to be.

In the easiest terms, a blockchain is really a digital ledger of transactions, not unlike the ledgers we've been using since way back when to record sales and purchases. The function of the digital ledger is, actually, pretty much identical to a normal ledger for the reason that it records debits and credits between people. This is the core concept behind blockchain; the difference is who holds the ledger and who verifies the transactions.

With traditional transactions, a payment in one person to another involves some type of intermediary to facilitate the transaction. Let's say Rob wants to transfer �20 to Melanie. He can either give her profit the form of a �20 note, or he is able to use some kind of banking app to transfer the money directly to her bank-account. In both cases, a bank may be the intermediary verifying the transaction: Rob's funds are verified when he takes the amount of money out of a cash machine, or they're verified by the app when he makes the digital transfer. 區塊鏈新聞 The bank decides if the transaction is going ahead. The bank also holds the record of most transactions created by Rob, and is solely in charge of updating it whenever Rob pays someone or receives money into his account. Basically, the bank holds and controls the ledger, and everything flows through the lender.

That's a lot of responsibility, so it's important that Rob feels he can trust his bank otherwise he would not risk his money with them. He must feel confident that the lender will not defraud him, won't lose his money, will never be robbed, and will not disappear overnight. This need for trust has underpinned pretty much every major behaviour and element of the monolithic finance industry, to the extent that even though it was discovered that banks were being irresponsible with this money during the financial crisis of 2008, the government (another intermediary) chose to bail them out instead of risk destroying the final fragments of trust by permitting them to collapse.

Blockchains operate differently in one key respect: they are entirely decentralised. There is absolutely no central clearing house just like a bank, and there is no central ledger held by one entity. Instead, the ledger is distributed across a massive network of computers, called nodes, all of which holds a copy of the entire ledger on their respective hard drives. These nodes are connected to one another via a software application called a peer-to-peer (P2P) client, which synchronises data across the network of nodes and makes sure that everybody has the same version of the ledger at any given point in time.

When a new transaction is entered right into a blockchain, it really is first encrypted using state-of-the-art cryptographic technology. Once encrypted, the transaction is changed into something called a block, that is basically the term useful for an encrypted band of new transactions. That block is then sent (or broadcast) in to the network of computer nodes, where it really is verified by the nodes and, once verified, passed on through the network so that the block can be put into the end of the ledger on everybody's computer, beneath the set of all previous blocks. That is called the chain, hence the tech is referred to as a blockchai
Website: https://cryptoinsiders.online/