Trying to explain intuitively what Blockchain is, we can say that it is a “chain of data blocks”, a way of writing information about new entries to the database (transactions), which are arranged in the form of successive blocks of “entries”, each successive block of entries containing at the same time a reference to the previous (block), which creates an inseparable string.

In blockchain it is important to maintain a common, collective book of transaction settlements. It has a digital form; it is scattered over the network in the same copies. Blockchain technology is based on a peer-to-peer network, i.e. it works without central computers. Every computer in the network can participate in the transmission and authentication of transactions. When we talk about blockchain, it will be blocks within a transaction book. The book is usually open to everyone (blockchain was created where it is otherwise), but fully protected by complex cryptographic tools against unauthorized access. Transactions are usually public (there are also blockchains where they are accessible only to both sides of the transaction), accessible to all, but visible only within the access rights of a given user. Moreover, they are impossible to reverse and deceive (there have also been attempts to create “editable” blockchain, which has not been understood).

Blockchain is one of the safest forms of data storage. It is used to confirm authenticity. It is unique, encrypted, unchanging, unchanging, secure and definitive.

Blockchain can be insensitive even to quantum attacks, and any overwriting of the registry even with permissions is not possible without leaving a trace. The administration in Estonia therefore trusts this solution.

It is very difficult to change past database updates (e.g. in a bitcoin blockchain more than 50% of network participants have to agree to it). Each update is time-stamped. New elements of the computer code (e.g. applications) can be added to the database update.

Blockchain Bitcoin

The most famous blockchain is bitcoin blockchain. Each block contains a header and database entries (transactions). The header contains a reference (abbreviation) to the previous block and a timestamp.

A new Bitcoin block appears in the string on average every 10 minutes. The chain may contain information about various transactions (e.g. trade, state of ownership, shares, stocks, sales, purchase of electricity, administration, purchase or sale of currencies, including cryptocurrencies, i.e. electronic currencies, social transactions – it gives a chance to drastically reduce the level of financial exclusion in the world, affecting at least 3 billion people).

The software was released by Satoshi Nakamoto on November 9, 2008. They have already been downloaded (i.e. Bitcoin Core) over 5.5 million times (Poland is ranked 9th on the list of 126 thousand downloads (March 2017)).

At the beginning of the bitcoin network’s operation, the prize for participation in it was the release of 50 bitcoins to the network in each block. This amount is halved every four years or so. The last change before last took place on 28 November 2012 and the last one on 9 July 2016. (the next one will take place around 27 June 2020). Currently, therefore, 12.5 bitcoins are released to the grid in each unit.

Travon Temple
Witold Adruszczak CEO of the Bitcoin-Squad.com project for 3 years associated with the crypto industry. This year we have decided on an international project. Our goal is to build Bitcoin awareness in the world. Education and support for people with no experience in the new industry which are cryptocurrencies. If you need more support please write in the comment. For all I always try to answer questions under the articles.