Understanding Blockchain Technology: A Beginner's Guide
#1 Introduction to Blockchain: Definition: Blockchain is a distributed electronic record keeping technology which stores and maintains a continuously growing list of records, called blocks, across a network of computers. Origins: Proposed by Satoshi Nakamoto in 2008 as the technology that supports Bitcoin. #2 How Blockchain Works: Blocks and Chains: Each block comprises a list of transactions, and a time stamp and the hash of the next block, making it hard to tamper with the chain. Decentralization: Disposes of the necessity of a core processing center as each node or computer in the network will store a copy of the ledger. Consensus Mechanisms: How consensus is reached on the state of the blockchain. Common ones include: Proof of Work (PoW): Miners (nodes) use their computational resources to work through extensive algorithms to verify transactions. Proof of Stake (PoS): Validators are selected depending on the number of coins they own and are ready to “stake”, or use as a gua