A Blockchain is a public electronic ledger built around a P2P system that can be openly shared among disparate users to create an unchangeable record of transactions, each time-stamped and linked to the previous one. Each digital record or transaction in the electronic ledger is called a block. Transactions are protected by strong cryptographic algorithms. Every new record is validated across the distributed network before it’s stored in a block. To access the data of the genesis block you have to traverse to the first block.
Types of Blockchains
- Public
- Private
- Consortium
Properties of a Blockchain
- Distributed - all participants in the network have a copy of the ledger.
- Secure - All records are individually recorded.
- Anonymous - An identity of the participants is either anonymous or pseudonymous.
- Timestamped - when a transaction occurs it’s timestamp is recorded on the block.
- Immutable - all validated transaction records are irreversible and cannot be changed.
- Programmable - a blockchain is programmable eg. using smart contracts.
- Unanimous - all network participants agree to the validity of each record.
Benefits of Blockchain
- Realtime settlement.
- A lot of money is saved as intermediaries are removed.
- Good security and reliance.
- Immutability
- Anonymity
Blockchain Bullshit
- Blockchain is free
- Blockchain is great for storing data
- Blockchain can be used for everything
- Blockchain is only for cryptocurrencies