If you have tried to dive in to this mysterious thing known as blockchain, you would be forgiven for recoiling in horror at the utter opaqueness of the specialized jargon that’s often utilized to frame it.
Before we get into exactly what a crytpocurrency is and the way blockchain technology may change the world, let us talk about what blockchain really is. You can learn more about block chain development through the internet.
In the simplest terms, a blockchain is a digital ledger of transactions, not unlike the ledgers we have been using for hundreds of years to record sales and purchases.
The function of this digital ledger is, in fact, pretty much identical to a traditional ledger in that it records debits and credits between people. That is the core concept behind blockchain; the difference is who holds the ledger and who verifies the transactions.
Blockchains operate differently in one key respect: they are entirely decentralised. There is no central clearing house like a bank, and there is no central ledger held by one entity. Instead, the ledger is distributed across a vast network of computers, called nodes, each of which holds a copy of the entire ledger on their respective hard drives.
These nodes are connected to one another via a piece of software called a peer-to-peer (P2P) client, which synchronises data across the network of nodes and makes sure that everybody has the same version of the ledger at any given point in time.