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This is how the blockchain technology works. Guide for beginners
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Kategorie: Geld - Versicherungen & Finanzen | Erstellt am: 17.07.2019 - 07:57:56

Almost everyone has heard of Blockchain and it's cool. But not everyone understands how it works. This article shows that Blockchain is certainly not magic.

What is a blockchain?
A blockchain is a journal that is hard to fake.

Hash Function
Imagine that 10 people in one room decided to create their own currency. You have to track the flow of money, and one person - let's call him Bob - has decided to keep a list of all the actions in a diary:

A hash is a sequence of numbers and letters generated by hash functions. A hash function is a mathematical function that accepts a variable number of characters and converts them to a string with a fixed number of characters. Even a small change in a string creates a whole new hash.

Block
This one table is called a block. The entire block family is the blockchain. Each node has a copy of the blockchain. Once a block reaches a certain number of approved transactions, a new block is formed.

The blockchain updates every ten minutes. This happens automatically. No master or central computer instructs the computers to do this.

Once the table, ledger, or registry has been updated, it can not be changed. Therefore, it is impossible to fake it. You can only add new entries. Registration will be updated on all computers on the network at the same time.


Key Points:
1. A blockchain is a kind of diary or spreadsheet that contains information about transactions.
2. Each transaction generates a hash.
3. A hash is a sequence of numbers and letters.
4. Transactions are entered in the order in which they were performed. Order is very important.
5. The hash depends not only on the transaction, but also on the hash of the previous transaction.
6. Even a small change in a transaction creates a completely new hash.
7. The nodes examine the hash to ensure that a transaction has not been modified.
8. When a transaction is approved by a majority of nodes, it is written in a block.
9. Each block points to the previous block and together forms the blockchain.
10. A blockchain is effective because it is spread across many computers, each containing a copy of the blockchain.
11. These computers are called nodes.
12. The blockchain updates every 10 minutes.

FANG NOW on


wallets, digital signatures, logs
Bob gathered the 10 people together. He had to explain the new coin to them.

Jack had confessed his sins to the group and apologized profoundly. To prove his sincerity, he returned her coins to Ann and Mary.

After all, Bob explained why this could never happen again. He decided to implement a so-called digital signature to confirm each transaction. But first he gave everyone a wallet.

According to one report, by 2017 alone, there were 42 participations totaling $ 327 million in 2017 alone. The most active investor is a Japanese service company SBI Holding, which is involved in eight Blockchain companies. A digital powerhouse Google is the second largest active investor with shares in Bitcoin wallet company Blockchain and Ripple, a company that works on a blockchain-based money transfer system.
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