Simple explanation of a Blockchain

in crypto •  6 years ago  (edited)

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Blockchain solves the problem of manipulation and reduces the gap of trust. A network of so-called computing “nodes” make up the blockchain, every node is an “administrator” of the blockchain, and joins the network voluntarily (in this sense, the network is decentralized).

A blockchain is a transparent and incorruptible digital ledger for data - in specific for economical transactions - that are programmed and distributed within the blockchain network, recording virtually everything of any value and information.

The blockchain database is distributed, therefor data and transactions aren’t stored in a single location – means that the records it stores is simple to verify and public. The blockchain network is basically a state of consensus, while automatically checking itself about every ten minutes – depends on the consensus algorithm and approach.

There are basically 2 types:

  1. Permissionless Blockchain
  2. Permissioned Blockchain

The permissioned fits the needs of economical use cases much better.

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