BLOCKCHAIN

BLOCKCHAIN

ACCORDING TO THE WEB

WHAT EVEN IS BLOCKCHAIN??

This week we decided it is important to get to know blockchain better. As rick already had a basic understanding of what blockchain is, he decided to explain it to me. He is very good at explaining things and I wrote up the following;

https://www.youtube.com/watch?v=SSo_EIwHSd4

- a chain of blocks that contains information
- 1991 to timestamp digital contents so its not possible to temper with these documents
- satoshi nakamoto, bitcoin
- cryptocurrency
- distributed ledger - its is completely open to anyone
- it is very difficult to change it
- each block contains ; data, a hash, a pre-hash
- data can include, transaction from who, to whom and where its going
- the hash is like a digital fingerprint
- changing something inside the block, changes the hash
- the hash of the previous block in the block makes it a chain
- the first block doesn’t have a pre-hash, we call this the genesis block
- changing a single block will make all the following blocks invalid
- proof of work is a mechanism that slows down changing the hashes
- blockchain uses a p2p network
- when someone joins the network they get a full copy of the chain
- someone makes a new block, it will be send to everyone and every computer will see if its been tempered with
- They all agree about which blocks are tempered with or not.
- Only when you can get consensus from over 50% of the p2p network, you change a block and all upcoming blocks in the chain, you will be able to change a block

- You have blocks
- Each block has three elements
- The first block has only two elements
- The element HASH has a number, for example 111
- The element content
- The next block, which is connected to the first one, has another code, for example 112
- The block next to it has a rehash code, zo the previous code of the previous block
- When a block is edited, it gets a new hash, which makes the entire chain invalid.
- Blockchain marriage - It can never be deleted or changed
- Multiple servers
- Decentralisation
- Extreme amount of these chains
- Another server will have the same chains, when multiple versions of these chains exist it is verified.
- When the chains are not the same the most common chain is going to be the one, the rest will be updated to become the majority chain.

Blockchain is officially the data structure behind bitcoin

officialy? is it really? what is a data structure?


http://www.watisblockchain.nl/wat_is_blockchain.php

Blockchain is a technique used for decentralisation and the bitcoin. Blockchain is stored on multiple servers and was designed by crypto specialist who didn’t like banks and wanted to provide an alternative. Bitcoin is one of the best examples of the blockchain. The cryptocurrency uses the blockchain to validate and store transactions on servers. By using the public blockchain the bitcoin is fully anonymous.

We read a few articles about blockchain and discussed our opinions on them. For the upcoming more weeks we will have to read a little bit more about the subject as it is a little vague for us. Discussing everything together does help us a lot.