Hello steemians, often we hear the term blockchain in steemit, even steem and steem dollars are one of the products of the blockchain, but do you know what blockchain is and how it works?
In this article I want to explore a little about blockchain, hopefully there are benefits to add to the knowledge we have.
WHAT IS BLOCKCHAIN?
Blockchain is an algorithm and data distribution structure for managing electronic money without having a central administrator, electronic money is managed by many people (Miners) who do not know each other. Initially Blockchain technology was designed for crypto currencies, Bitcoin, the Blockchain technology architecture was developed because it was driven by a radical rejection of money controlled by the government-guaranteed government and a payment system controlled by banks.
HOW DOES THE BLOCKCHAIN WORK?
Blockchain is a Distributed Ledger Technology (DLT) which was created to support Bitcoin cryptocurrency. Bitcoin is motivated by extreme rejection of money guaranteed by the government and payments controlled by banks. Bitcoin developer Satoshi Nakamoto imagined that one day people could spend or spend their money without any intermediaries, rules or knowledge (permission) from other parties (Financial Freedom).
The main problem in electronic money is Double Spend. Because pure electronic money is only data, nothing stops the holder of the currency from trying to spend it twice. Blockchain solves the Double Spend problem without digital backup funds.
Blockchain monitors and verifies Bitcoin transactions by calling decentralized networks managed by bitcoin volunteers (Miners), basically, choosing based on the order in which transactions occur. The network algorithm ensures that each transaction is unique (no Double Spend occurs).
Several thousand nodes form the Bitcoin network. After most nodes reach consensus that the transactions that occurred in the past are unique (ie not spent twice), the transaction is cryptographically sealed into one block. Each new block is connected to a block that was previously closed to create a history chain that was received, thus creating a verified record for each purchase.
Blockchain functions and security are generated from thousands of network nodes that approve the order of transactions. The nature of the spread network allows transactions and balances to be recorded without bias and is resistant to attacks by a relatively large number of malicious actors (Cyber Crime). The transaction records and balances remain secure with the approval of the majority of existing nodes (51 percent) from independent nodes.
One of the most innovative aspects of Blockchain from Bitcoin is encouraging a node to participate in an intensive consensus building process by randomly rewarding one node rewards at a fixed price (currently 12.5 BTC) every time a new block is completed and committed to the chain that. This accumulation of Bitcoin in exchange for participation is called "Mining".
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