Blockchain explained in plain English
Understanding how blockchain works and identifying myths about its powers are the first steps to developing blockchain technologies.
Blockchain is an algorithm and distributed data structure for managing electronic cash without a central administrator among people who know nothing about one another. Originally designed for the crypto-currency Bitcoin, the blockchain architecture was driven by a radical rejection of at (government-guaranteed) money and bank-controlled payments.
Blockchain is a special instance of Distributed Ledger Technologies (DLTs), almost all of which have emerged in Bitcoin's wake.
HOW DOES BLOCKCHAIN WORK?
Blockchain is a Distributed Ledger Technology (DLT) that was invented to support the Bitcoin cryptocurrency. Bitcoin was motivated by an extreme rejection of government-guaranteed money and bank-controlled payments. The developer of Bitcoin, Satoshi Nakamoto envisioned people spending money without friction, intermediaries, regulation or the need to know or trust other parties.
Technically, the original blockchain is separable from Bitcoin, but this report will show that the blockchain design is so specific to Bitcoin that it's not a good fit for much else.
The central problem in electronic cash is Double Spend. Because pure electronic money is just data, nothing stops a currency holder from trying to spend it twice. Blockchain solves the Double Spend problem without a digital reserve fund or similar form of umpire.
Blockchain monitors and verifies Bitcoin transactions by calling upon a decentralized network of volunteer-run nodes to, in effect, vote on the order in which transactions occur. The network's algorithm ensures that each transaction is unique.
Doubt : If the land which stays disputed between Anne and her brother dates back to 1900s and if it has entries dating back to 100+ years, Is there not a possibility that the data entered to the BC in the first place itself could be tampered. For instance, if the data was tampered in say 1970s , then while converting the series of information into blocks, the data that is entered could be tampered one , isnt it ?
I have this doubt whenever I read about BC, can someone please guide ?
What if Anne dies? The blockchain does not contain Anne's will. I don't understand this foolishness. Yes, blockchain might be great for some simple data, but then again aren't bitcoins being stolen on a regular basis? How is that possible?
Doestn the hybrid method defeats completely the blockchain purpose? if only some selected few can change the data without the authorization of the net the inherit trust is completely undermined... yes, sure "their" system would not permit it, but since they have access to everyone who creates the blocks they can change the information at will, am I misunderstanding something?
The bigger the front the bigger the back.
Like so many ideas, everything sounds great until you inject the human elements of greed, power, and corruption. That which is created cannot protect against the vices of the creator.
Continued digitalization of everything also results in decreasing security of everything.
Think how unsafe online voting is....no paper trail = manipulation. Now multiply that by a very large number. So many ways and levels to infiltrate and subvert this. Once you strip away all the mumbo jumbo it becomes clear where this is all going....centralized control. The wet dream of the globalists.....
"BitConnect EXPOSED! New companies forming to cover up old ones? WE NEED THE TRUTH!"
Marian Murphy also shilled for BitConnect SCAM in addition to Onecoin ponzi!
Marian Murphy is OBVIOUSLY A FULL TIME THIEF AND SCAM ARTIST! HEARTLESS AND FULL OF CORRUPTION!!!!
She will go down with the ship!
ANYONE IN MARIAN MURPHY'S DOWNLINE SHOULD REPORT HER IMMEDIATELY FOR PONZI/ PYRAMID FRAUD THEFT, AS WELL AS SELLING UNLICENSED SECURITIES!
(I thought she was a "victim" of Onecoin scam, but we have uncovered the truth, FINALLY! She is part of the problem, and a conspirator to economic fraud crimes of her down-line!)
Center for “INTERNATIONAL GOVERNANCE” OR “New World Order” Or “One World Government”…. … it sound more like a centralized control system……and invasion of privacy…..people would rather pay their lawyer …. And keep their privacy......than to let SATAN handle it……Old system is good….Say…..NO Thanks!.... to block chain.
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Not sure about that blender though, it confuses (and scares!) more than it explains. It's supposed to symbolize the mixing of a particular set of technologies to make a (trusted!) blockchain possible, but when you visualize that as a bloody mary then it's not a particularly trust-inspiring metaphor is it? :-) To be clear though, I am a fan!
Most overhyped technology.
If i own a bitcoin and lose my private key or somebody steals my private key its gone forever. With my $$/bank account/credit card i dont care about these things. Blockchain tech where you are the only party controlling private keys actually makes things much worse,all it takes to lose private keys and its all gone forever. It happened to a lot of people who lost tons of BTC, bc of this it will never go mainstream
Same goes for land titles, car proof of ownership etc centralised gov agency is needed in case you lose access and need to ID yourself.
Regulated 3rd party is the best way
that is why they will replace bitcoin with RFID chip. they will use media to incite fear in people that hackers can and will take over their identity unless they get the RFID.
bitcoin is only laying the foundations, digitally and mentally, for the Banking Elite.
if you have assumed that the Elite have your best intentions at heart, you need to study up on some actual (non gov. propagandised history)
Paypal let me send money to different users in different countries with minimum fee. For land ownership I have a certificate from the country its shows that I'm the owner of the land. If I lost the block chain address thats mean i loss my land and money.
Is blockchain powers have the ability to make people become blind? Bitcoin has no foundation of where the "money" came from. What about the other 100s that are savvy enough to jump aboard the suicide train before it crashes. Would you willingly give me your real money for my make believe computer money? Am I stupid enough to give you real dollar change for 1 bitcoin? Everyone in this pyramid scheme has to con the next person thru the guise of greed that they will become rich. Which may be true depending how long it takes before the people that this is a house of cards waiting to tumble down.
The people who own bitcoins....do they have an ATM card to withdraw real cash? Who gets to audit the system? Where is the real money that went into the "blockchain" to validate the cryptocurrency's worth?
only the Banking Elite will have control to audit. this system removes the human side out of the system - they say it is to remove human error - but it is to remove any ability to hold them responsible for their actions and decisions.
I'm always suspicious when any company has to spend money creating (or inventing) an independent entity, call it a center, an institute, an association, a platform.... to make all of us see how simple, trustable, decentralized, controlled and verified they are. And I get even more suspicious when they have to spend even more money on hiring a publicity agency which then hires writers, director, graphics designers and an actress with a calming, soft voice that appeals to our trusting feelings (with all that crap of unconcious calming effects of mothers voices). All those spends make me distrust. Someone paid for the making of this video. I don't know who, where that money came from and why was spent on this. And I don't know what's the expected reward on that investment. Whether my personal data, my money or both. I guess both.
Indeed that video seem very costly and it's a good question to ask Who benefit from that ? Let's just assume that people get really excited about that new trend and they want to be a part of it, also making a great video about a new trend can bring you more views, more subscribers and then more trafic. But you're right the quality of that video and the work involved kinda give us the feeling that there's something fishy behind it.
Tell me if fraudulent entries are entered into blockchain who is there to disprove the info uploaded? Soon this false information is deemed true. What happens when the original data is destroyed to cover up the false entry? And if no one is overseeing the data and the real paper trail is destroyed the creator of the computer data is now the greatest thief. Idiots believing in a computer system where hackers are making billion every year. Why can't they stop even a handful of these criminals? Now you are going to let the crooks rule over all things of value?
Actually, you need to have trillion dollars of worth equipment to alter the blockchain. Because it is secured with the most powerful computer on earth which is distributed over continents and countries. And value for money? If your government pay your salary with a paper and say hey u can use this to buy tomatoes you believe (or have to believe) it right? So people believe that they can buy something with Bitcoin. This makes it valuable :D
Its not stored on just one PC or server. Every change to the information is recorded and synchronised across the network, it's transparent for all parties to see. If Jack changes something in the contract that change will be visible to all parties including Jill in real-time. You can't fake a mathematical crytographic sequence, it's either black or white not both. All nodes store the same information, it's mirrored. It's similar to the original idea behind the internet (ARPA-Net) which was designed to withstand a nuclear attack. If one part of the network was destroyed the other nodes would continue to communicate in a mesh thus allowing a retaliation from another silo. The data can't be manipulated.
+Bean David it is backed by China, Russia.. and a bunch of other communists countries, as well as other 'Democracies' that are actually socialist/communist according to their methods of government.
the fact is there is no way to prove to everyone that alllll their gold was used to buy bitcoin.. or any other digital currency - and in any case - digital currency is even more imaginary worth than cotton paper money.
So.. if I use bitcoin, EVERY single one of trade (like buy something or exchange for currency) go through this process?and what if someone try to decrypt that puzzle and creat NEW false brock instead of rewrite record? I can understand rewrite these records is difficult as hell, but what about creat new one?
Yes we need this, you cant make movements thru your account in end week nor working hours, and you not longer would need a intermediary that check that everything is fine, you know is annoying that you can’t move your money in determinate time because banks doesn’t work or a lot of things, or for instance if you want you move big qty of money, you don’t have to pay high feeds and txs to move it, man this is very usefull, in determinate time everything will become more automatic
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Hey Lucas Mostazo, nice video, really helpful. One question please. If one computer solves the puzzle for its block and shares the solution to other computers so when the other computers will create a block, they will not have to solve anything and they will be verified. How is this verification true?
It was a really good explanation until you said a block needs to be completed with proof of work. I know of a crypto-currency that can create a new block for just a few pennies because it doesn't use proof of work or proof of stake.
BlockChain technology will be revolution in the coming year, people say there are many projects are coming , according to PC mag propy and BlopckGrain are the top projects which are built on the Blockchain technology . lets see how far we can go in this matter. Blockgrain Ico are worth buying or not , kindly help me in the reviewing it.Cargill company is also going to take over this .That will going to make the world hunger free .
There are a few doubts I have.
Firstly, companies have large servers to store their data. They need large servers because there is so much data which needs to be stored. Now with blockchain each node, ie, each computer would need to store all of that data. Where would be they this large storage space?
Secondly, for blockchain to be immutable, the number of nodes in the network must be large. Otherwise all the involved nodes can be hacked or could even be destroyed, thus destroying the entire blockchain claim of immutability.
With the growing number of firms implementing their block chain networks, the problems should only become confounded.
It maybe that I don't understand it completely or there are provisions to solve these problems already.
Hey Harshit, Genuine Question. I can try to give you some perspective regarding what you asked but not the whole thing since it would confuse you with details.
Firstly, As you asked about large storage space. It doesn't work like the conventional system. Each node in the blockchain works as a ledger itself, i.e. it holds the data of transaction, for example, Bitcoin as an implementation of blockchain is famous majorly cause of it's decentralized nature. The advantage of this decentralized nature is huge bro, simply cause even if you had the best supercomputers available, you won;t be able to 'HASH' out bitcoin addresses, simply cause it requires 'huge' amount of processing power to reach that specific Hashrate, (that's the mining part am touching here, which has multiple algorithms).
So one doesn't need storage space to hold the entry of ledgers, but one would need huge computational power to gain control of the blockchain or to create new blocks.
Secondly, Even if I have 10 nodes in the blockchain, to reach to the 11th block itself, requires high amount of processing power, thats the beauty of blockchain, Yes you are right in saying that it becomes better with an increase in the participants, But even if someone gains the control of a blockchain with less nodes, they can't derive any value from it, since it would cost them huge to create further nodes and blocks. Why do you think people gained absurd amount of bitcoins when they were mining in the initial days (read abt the most expensive pizza).
Lastly, what you touched upon the increase in the number of companies adopting blockchain, it won;t make the problem more complex cause firstly, blockahin is more like 'JANLOKPAL' , i don't know if you get the reference here, but the power to create and control is in the hands of the participants, that's the catch that makes it the tech of future. This goes way deeper than mentioned in the video but the vid is for the intro part of blockchain only.
if u want to store all the transaction data since the beginning of bitcoin it is now about 200gb. Nothing impossible to store. But if u ask using a wallet app from the phone, that data still not be manageable. So you don't need to store all data to validate your transactions. Instead, a procedure called Simple Payment Verification (SPV) occurs by ur wallet to validate. That works by getting only info associated with your wallet, not the whole peoples' info in the world.
From Satoshi's white papper about Bitcoin
"A block header with no transactions would be about 80 bytes. If we suppose blocks are
generated every 10 minutes, 80 bytes * 6 * 24 * 365 = 4.2MB per year. With computer systems
typically selling with 2GB of RAM as of 2008, and Moore's Law predicting current growth of
1.2GB per year, storage should not be a problem even if the block headers must be kept in
Google peer to peer and read it in depth. It will answer your first question. Actually, you should probably just read about blockchain again because I think your questions show you're missing the basics. Just wondering, did you study computer science or anything tech related?
Harshit Agrawal You know what kinda people can't stand criticism and questioning their beliefs. Such people don't understand that debates and criticism actually helps to detect and eliminate any possible flaws in any system. And anyone who has worked in the programming, coding, systems/product development, management or in operations appreciates and understands the value of criticism and questioning because they know how it can help the process.
But this guy clearly loves getting triggered and telling people how great he is in that field instead of sharing what he thinks.
Anyways I like the fact that you had questions instead of just following a trend and who knows one day someone might end up resolving these issue making this a really reliable system as they claim it to be.
Austin Kelly That's not it. The princples behind this technology are not that complex actually, it's just a new application made possible by a large network like the internet. You could have a single copy of a blockchain on your pc but then it's no use to the rest of us because it's just your own private database. By having everybody have a copy and synchronizing over the internet then it becomes useful because through the block hashes it can be ascertained that there is no tampering going on and thus consensus is maintained. See this vid, it really helped me a lot: https://www.youtube.com/watch?v=SSo_EIwHSd4 Also note that Bitcoin was not created for companies but in reaction to the banks and the financial crisis that they brought about. It is truly the currency of the people, not the banks or any government.
This is the MOST NAIVE explanation and has no idea about the fundamental understanding of what Block chain is.
It not once mentioned Proof Of Work. this is where they got it wrong. All they do is expain a LEDGER NOT BLOCKCHAIN. this video is completely wrong
Ashraff secp256k1 To be fair, trying to explain UTXO's in a simple introduction to blockchain would be a bit nonsensical wouldn't it? That's for people who decide to dig further or actually start using it (and even then they do not necessarily need to understand what unspent outputs are).
Always the problem is human. Because we trust human to enter the correct data. Machine cannot tell whether the one who entered the data is wrong or not. This will be the weakness I think. So basically it says no more middle man.
Greetings of the day,
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Cryptocurrencies run on top of the blockchain. They are only one example of a use for the blockchain, there are many many other uses that will become very useful in the future like storing medical records or records of ownership or contracts... Such forgeries as the "Donation of Constantine" will no longer be possible. #donationofconstantine
once you break the blockchain, you break the bitcoin ^^ so anybody come up with another bs function thats unsolvable like getting the "simple" squareroot, its just CONVINCING ppl that your "function" is important which it really isnt! ITS WORTH NOTHING!! so everybody in our society can live with power,water,food...and even more WITHOUT the need of any money!!!!!!!!!!!!!!!!!
Excellent video, this ours future and even already real. The cryptoworld promptly develops and has big prospects. The generosity and prospects at height was fond of the TokenGo platform. Investors increase that speaks about success of the project. I wish all success become a part us.
5:10 "It could allow everyone to view property records, but reserve to itself the exclusive right to update them."
In this scenario, why would a blockchain be used instead of a single, central ledger that people have "read-only" access to?
I get what you're saying but this hybrid model wouldn't run on proof of work like bitcoin.
So then the blockchain is purposely coded so that the company isn't able to do that through this hybrid method. Problem solved. The company isn't taking control of the blockchain in this hybrid model, they have only been given the ability to make changes, transparent, immutable audit-friendly changes.
No everyone would be able to see that the company changed the information because a new block would be added, instead of the company being able to edit the fine print in secret. That's what makes it immutable. People will trust the company/system more.
Thanks for this. I like the explanation at 289 seconds in. Did you know that that granular data access model is the actual foundation of everything Lotus Notes does? It is the very basis of IBM Lotus Notes Forms and the Security Model which has been in use for almost 40 years.
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