Blockchain – what it is in simple words (explanation on apples)

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What is the blockchain? In this article we will explain the term in simple words and clear examples on apples.

BlockChain in translation into Russian means the block chain. Imagine the armor of the hero. Each iron ring is directly related to the other. And technology of the blockchain, each block is associated with thousands of others, but unlike chain mail, each block interacts with all the others.

In fact, the blockchain is a technology for storing data and information on the processing of these data. But, unlike other systems, it has a unique working principle.

We will not go into technical details, it is important for us to understand the principle itself.

A simple example. Let’s imagine the situation. You and your friends have gathered the harvest of apples and get to the basket. Counting your score – write it in a book. Presented? Go.

You come up, put in a basket of 10 apples, he recorded his book. Your book with the record is the first block.

Suitable Katya, rewrite your result in my book, puts his 5 apples in General, shopping cart and also records a contribution. Her book is our second unit. You count and confirm that everything is correct, and write the result of Katie in her book. Now all recorded the same actions and a total of 15 apples.

The third Andrey, copy you have a record of your and Katya’s apples, Katya and check the correctness of the recorded and confirm that everything is correct. Then Andrew puts 15 apples in the basket, recording your result. You, along with Kate confirm and make record in your books. The book of Andrew is the third block in our system.

While it’s simple. All new members to rewrite the results of the previous one, are doing their share, the correct amount is confirmed by other and all make changes to their records.

Thus, of all books recorded the same information. And this is the first principle of the technology of the blockchain is a copy of all data stored by each participant.

Suppose he decided to give Kate 5 apples and loudly announced it to everyone. All frantically began to look in their records how much was Andrew apples, counting how many remain. Who was the first to solve this puzzle announce to everyone, that’s all true, Andrew is a lack of apples and he even stay for another 10. Everyone else check my notes and say – yeah! And record everything myself in the books this operation (remember that smart guy, who decided the first example, we’ll talk).

Similarly happens with Katya’s number of apples. Someone faster all found how many apples she had and how many now and told everybody about it! All say it again – for sure! And made entries in their books.

And this is the second important principle of the system – all operations are transparent and can be verified by all participants in the system.

And finally, there is a “mishandled Cossack”, which has the same book, but it is recorded that he collected and already gave my 50 apples, Andrew is only 5, and you do only one thing.

You and all other members check their records and say that’s not true, and send this servant on the farm of butterflies to catch.

And this is the third important principle is such a system impossible to hack or modify. For this you will need to make changes in the books of most of the participants with precision up to a point, that they didn’t notice and occasionally did not compare its records with records in other books.

Noticed the main difference of the system? It is not the chief custodian of the information and the main controller. That is, over participants in the system should not the man with the granary book, where slowly and reluctantly writes about the harvest or transfer apples to another person. System samoreguliruetsja with all participants.

Hope became a little clearer and now the same thing, but in accepted terms.

The blockchain is a versatile tool to build different databases, which has the following advantages:

  • Decentralization. There is no main storage server. All records are kept in each participant.
  • Full transparency. Any member may monitor all transactions held in the system.
  • Privacy. All data is stored in encrypted form. User can track all transactions, but cannot identify a sender or recipient of information if it does not know the number of a purse. For operations requires a unique access key.
  • Reliability. Any attempt of unauthorized changes will be rejected due to the inconsistency of previous copies. For legitimate changes to the data require a special unique code issued and confirmed system.
  • Compromise. Data that is added to the system, checked other participants. Speaking clever words they compute the hash. (The hashing in a separate article, but essentially, they count the apples using complex mathematical formulas).
  • Read more about the last paragraph. Remember of the wise men, the first considered the number of apples. In the system of the blockchain, they are called miners (in Russian- miners, miners). Each data operation, whether to add or change authorized, the system assigns you a specific set of digits (the hash) which other participants must find, by going through certain formulas and functions. Typically, in existing systems, all participants compete for the priority of finding the right solution. The player who first finds the right combination, announces it to the others and all must agree, as further research become meaningless.

    So, miners are the people that give the power of their computers to search for this solution and, if successful, create the new system in exchange for reward.

    Hence another term – mine – to participate in the system, providing the power of the computer to generate new blocks by solving this system issued math problems and get rewarded if it succeeds. The more participants in the system, the harder it is to find the right solution (calculate the hash), as the complexity increases in proportion to the number of participants. Currently actively applied in respect of crypto-currencies (more on this below).

    Here’s how you can explain in simple words, what is the blockchain. In reality, these systems are more detailed, have a lot of nuances and the technical features, but the basic principles outlined above, as a rule, remain unchanged.

    Where and how to use blockchain?

    As mentioned above, the blockchain is a storage system built on certain principles. The data itself can be varied. Of course, a striking example of the use of blockchain technology is the creation of cryptocurrency. The most popular of them is bitcoin.

    Blockchain and bitcoin is not the same thing! The blockchain technology. The bitcoin system operates with the use of this technology.

    Other uses of block chain technology are: medicine, logistics, banking, contracts and many others.

    In each industry using blockchain will have its own characteristics and to acquire additional parameters, conditions of access to data and ways of their changes or additions.

    One example is the use of this technology to create registries of real estate. The developers of these registries argue that, in correct operation system, there is no need, for example, the notaries, because the system itself is the guarantor of the transaction and confirms the right to property. However, currently, everything is in its infancy and work is under way to build and debug such systems.

    Interestingly, critics and supporters of blockchain technologies have heated debates about the usefulness, security and possible applications. But in a dispute born truth. In genetics did not believe, remember?

    In conclusion, I want to reiterate that in this article, we tried to convey the meaning of blockchain technology in simplest words without the use of abstruse terms and without going into the description of complex processes.

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