Note from the CEO: OK, we admit it. Sometimes even we at FintekNews need a bit of a refresher course to remind us of what we write about. Not that we are dunces or absent minded or anything, but…………. Anyway, if you kind of want to “refresh” your blockchain knowledge this is a very good read. I’m reading it right after this.
The author has written a great introduction (brief) on what blockchains are in a very easy to read format. The article is a general overview steering away from the complicated technical details (good) and lays things out really well.
Iam pretty sure you heard about Bitcoin, a cryptocurrency that has its own electronic payment infrastructure which allows transferring money between parties. Bitcoin compared with traditional payment systems does not have a centralised authority like banks where all transactions are stored. In contrast, all computers in Bitcoin network running a special software carry out this function. Also, Bitcoin has no physical value like coins or bills, it only has a digital value. Main goals of Bitcoin are to decentralise payments around the world, keep them safer and uncheatable by applying cryptographic methodologies.
When first bitcoins were spent in 2009, a new technology called the blockchain was introduced. It provided a security layer and allowed broadcasting bitcoins without a trusted intermediary. The blockchain is the main technology which stands behind Bitcoin.
What is the blockchain?
Technically, the blockchain is a database that stores all records (blocks) since its inception joining them into an inseparable chain. The blockchain is distributed through a peer-to-peer network. The network enables communication without a centralised server and all machines (nodes) have the same privileges. In other words, they are clients and servers at the same time. Each node in the network stores a copy of the blockchain and once it gets updated all other nodes are kept in sync. This approach helps to decentralise a system and reduces the risk of data loss as long as at least one node holds the blockchain. The only way to delete it permanently is to erase the blockchain from all the nodes what is virtually impossible for such huge systems like Bitcoin.”