The nerds from Nerd as a Service are always making sure they are on top off technical innovations. So off course we know about Blockchain and even ran some projects involving “THE BLOCKCHAIN”. After including blockchain in our prediction list for 2019, it is time to start sharing our knowledge and thoughts about blockchain!
Blockchain is like a big database, in which the content is divided in dependent, impartial groups (blocks). In this network you can store information. The database is decentralized and distributed amongst all the participants in the network. It also uses cryptography to add digital signatures to a, for example, new transaction.
Everyone connected to the network holds the same copy of the database (the ledger). The ledger will be updated when something is added and validated among the rules of the network (e.g. enough balance to make a transaction). The ledger is the main record which holds the list of blocks in that network and thus is an immutable record of all data in “the database”.
Specific information about, for example, a transaction is distributed in this big database. So every group that is part of blockchain has the same specific information about this transaction, like a room full of witnesses. So all participants can check if a specific transaction is correct. There should never be a discussion about a specific transaction, because there is a room full of witnesses who also know everything about this transaction (this still happens though).
Blockchain is not owned by anyone, so there is no super-admin who can change information within a Blockchain (in theory). To be more specific, no transaction can be changed when it is recorded on the blockchain. Information within the chain is there permanently. If you change a transaction, a new piece of information is added to the chain. But only if the whole chain accepts this new piece of information, because all participants verify that it is valid.
Now that you know a bit about how the technology behind the blockchain, let’s try to clarify it by giving you an example. In this example we will follow the events that happen when Alice sends 1 Bitcoin to Bob.
Blockchain is a complicated subject. With this article we tried to make it as understandable as possible for you! We advise you to keep in touch with the blockchain developments in many different industries, because it could help you innovate your company in big ways.
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