What is a blockchain ?
It’s a money exchange system build and manage by its users. Before each transaction, some special users verify the data and validate that everything is in order.
Who are these special users ? / The special users
In a way, they are the guardians of the blockchain. They are called the minors. Every user can become a minor, because every user has access to data. However, you will need super computers and heavy algorithms, that’s why minors are paid to secure blocks. Then, normal users can see if the validation is correct.
Mining ? / Mining with pickaxes
The name of this activity come from the structure of the blockchain itself. Transactions are gathered inside a block. When the block is full and verified, its linked to the chain of blocks. The minors have to dig deeper and deeper into the block in order to found every unverified transaction.
What is the size of a blockchain ? The size of a blockchain
More than 1.500 transactions per block and about 90.000 millions blocks. This explains the computers and algorithms. (source : blockchain.com)
Why is this system so cool ? Coolest system for users
It’s an impregnable forteress. To hack a blockchain, you need the access to thousands of independent databases.
It’s cheap to create and manage. Due to its architecture, a blockchain doesn’t need any centralized structure in order to manage it.
It’s almost free to use. Transaction costs are tiny as a penny. You only pay the minors.
Blockchains miracle : the smart contracts
Blockchain are secured, open and smart. Everybody hates administrative procedures linked to refund. For example, if your fight is cancelled today, you need to engage a procedure with the company. Tomorrow, these special conditions will be contracted, inside blockchains. The special condition of this transaction is : “flight canceled”. If it happens, the refund is made automatically, if nothing happens, the transaction disappears. Awesome, right ?
How to join a blockchain ? / I want to be part of a blockchain.
Blockchains only concern virtual currencies and specific users. It’s a young technology but everybody believe in blockchains. Right now, the skills and knowledge required to industrialized this system are too weak even if some companies called FinTechs are working on it.
Dig into the blockchain :