What is Blockchain?
Blockchains are internet messaging protocols and use tokens to operate or exchange information which gets validated by a consensus mechanism and recorded to the network ledger.
Tokens could represent anything; a currency, commodity, security, asset, or even just a message.
In some network designs, tokens are used to operate the network rather than being a representation of an asset.
A protocol - has an input standard, format, or ruleset
A ledger - a collection of records or transactions.
Decentralized - not centrally located
Has Consensus - a form of agreement
Is Immutable - cannot be changed
A protocol is a format or standard.
In order to be processed the data must be input a specific way.
Standardized data is how the Internet is accessible around the world, it's the globalized standard for sending and receiving information.
Websites are formatted based on Hyper-Text Transfer Protocol, we're able to write and read them anywhere in the world - as long as they use the same protocol!
With blockchain, that information can become an internet historical record.
Until now, there has never been a payment protocol for the internet because there was no decentralized way to record the transactions on the internet.
A ledger is a collection of records or transactions.
Each "block" is like a page in a book.
Once the "page" is full the block is closed and the system starts writing on the next block.
The closed block is stored in the blockchain forever as a historical record.
It's pretty much the internet for records.
The blockchain is decentralized; not centrally located, and recorded across multiple databases - all storing the same information.
This way you can't hack one centralized database to manipulate or change the data.
Once more than 50% of the network comes to consensus, the transaction is added to the block.
It's like you had a bunch of witnesses watch you transact money to a stranger, but instead these witnesses are computers or "validators".
A blockchain is immutable.
Each transaction is digitally signed with encryption, or a hash.
In order to change the transaction you'd need to hack 51% of the network all at the same time to convince the validators it needed changed - good luck.
"Standardized data enabled the internet of data.
Standardized records (blockchains) enable the internet of records."
Blockchain adds a layer on top of the "Internet of Information" layer and creates an
"Internet of Records" layer.
A global standard of record protocols, just as the internet is a global standard of data transfer protocols.
