Blockchain guide for dummies
Many people would like to know the Principles of blockchain technology. But what is a blockchain?
The Blockchain is a public database of transactions in the Bitcoin system. With its help each user can know how many Bitcoins were in a particular place in a particular period. The Blockchain can be used wherever there is mistrust between the parties. For example, in the transactions of purchase and sale there is always the risk that the seller receives the money, and the buyer - the service/product. Using the system, you can verify the authenticity of documents, product, service or company.
Lots of userssearch for “Ehtereum proof of work algorithm”. (Ethereum has become the most profitable asset in 2017 among more than 1,000 cryptocurrencies). What is the proof of work algorithm? On a deeper level, Proof-of-Work is a set of requirements for complex computer calculations that you must perform to create a new group of authenticated transactions and add it to a blockchain (now it is called mining).
The Blockchain is a kind of account database that stores information about events from real life. It is a method of recording all public data (transactions, agreements, contracts). Its peculiarity means that information on all transactions is stored not in one place, but scattered across thousands of computers. So any user can access the content.
All the data is combined with mathematical algorithms in blocks, and the latestones form a chain. Each block contains the hash of the previous one. This chain starts from the first block in the system and operates until the last. Editing the information that is online for a long time is impractical. You need to rewrite all the blocks. Chain length is determined by complexity, not by number of items.