What’s the blockchain?

Many friends have asked me a question, what is blockchain? I have also talked about some blockchain content on and off before, and the concentration is not too strong. Today, let’s talk about blockchain alone and explain it thoroughly. Then you understand that blockchain and various digital assets, cryptocurrencies, are really two different things. Some random concepts and financial products under the banner of blockchain will not fool you.


First of all, let’s make it clear that blockchain is a tool that has no value in itself, nor is it good or bad. It is just like a hoe. If you put it there alone, there will be no value. But you plow with a hoe, you plant, and the food you grow is valuable. Some cryptographic digital assets, like Bitcoin, are products that take advantage of the blockchain tool, and that are valuable to a lot of people. If a lot of people identify with bitcoin, then bitcoin has value in their eyes. But let’s be clear, bitcoin is a product, and that product is produced using a tool called blockchain. These are two different things. Don’t get confused.


So what kind of tool is blockchain? Essentially, it’s a database. But this database is a little special. It’s a distributed, decentralized database.


Here, some friends may begin to circle, “I don’t even know the database, you also come to a distributed decentralized database, how do I understand?” Don’t worry. You’ll understand when I speak slowly.


What is a blockchain?

Databases are very common in our life, even if you have not studied the relevant knowledge, you should know what it is. It is used to store and process all kinds of data. From the population, economic and environmental data of a country to the various statements of provinces and cities, large companies, enterprises and institutions, to the daily life of people at home, you can’t do without databases. You’re a little store, and you have to figure out how much you bring in and how much you sell for, right. Let’s use the simplest example, people living at home to keep an account, to tell you what the blockchain is.


For example, Zhang SAN used to live in a muddle. He never had a count of how much money he earned and where he spent it. His life was in a complete mess. Later, an expert pointed out that you can’t do that, you have to learn to keep accounts, figure out your income and expenditure, then you can live within your means, to learn to plan. Zhang 3 a listen to reasonable, that bookkeeping.


Zhang SAN earns 5000 a month, Zhang SAN’s daughter-in-law earns 5000, and there are some other incomes of 2000, Zhang SAN’s family earns 12000 a month. Expenses: 3500 for mortgage, 1000 for property property, 1000 for water, electricity and communication, 2000 for clothes and cosmetics, 1500 for meals, etc. The monthly expenses of each item amount to 10000, and Zhang SAN’s family can save 2000 every month.


Zhang SAN a look, this is very good, my monthly income expenditure at a glance, which money should spend this can not, which money should not spend I also know, next time pay attention to save a little. Slowly I was able to save 3,000 yuan a month, 36,000 yuan a year. You can get another car in two years. This is called bookkeeping. The notebook that Zhang SAN uses for bookkeeping is called database. The figures of income and expenditure written in the notebook are the data in the database.


We’ve explained the database. It’s as simple as that. So what is a distributed, decentralized database? In fact, it is also simple, that is three daughter-in-law also bookkeeping.


Zhang SAN keeps accounts by himself, which is called centralization, with only one database. One day Sam’s laptop burned down, and the database was gone. Now Zhang SAN daughter-in-law also accounts, this has two databases, two centers. The data in two databases are exactly the same, this is called distributed decentralization, even if one day, Zhang SAN’s notebook was burned, Zhang SAN daughter-in-law’s notebook is still there, the data will not be lost. This is the benefit of distributed decentralization, the data is secure, it doesn’t have a single center, it doesn’t matter whose data is lost.


What is a blockchain?

Now there is a new problem, two people have bookkeeping, whose is the criterion? If the data recorded by both people is the same, then there is no problem, both books are correct. What if something goes wrong? It’s hard to say whose will prevail.


In order to prevent the chatter, we still use this example to continue to say. Just said zhang SAN daughter-in-law also bookkeeping, that we talk about why zhang SAN daughter-in-law bookkeeping.


Zhang SAN began to account, zhang SAN daughter-in-law on suspicion. All of a sudden, you start keeping accounts. Broad day old sow up the tree, here must be a ghost. Are you thinking about divorcing me later? No, I have to keep a book, too, so I don’t know how much money I have in the house. Then, Zhang SAN daughter-in-law also began to account.


Pass a period of time, zhang SAN discovers daughter-in-law also in bookkeeping, ask her, you bookkeeping stem what?


Daughter-in-law also readily, I suspect that your bookkeeping is to want to divorce with me later to divide family property, that I also have to remember, lest I have how much money in the home to say.


Zhang SAN hears to laugh and cry, daughter-in-law you think much, MY bookkeeping is to live our life well. However, I do not object to your bookkeeping, we call this distributed decentralized bookkeeping, data is more secure. You know what it means to be alone.


This explanation, zhang SAN daughter-in-law heart stone down, originally this dead ghost is not to divorce with me, that good. But in case one of us gets it wrong and forgets after a while, whose account will be the one?


Zhang SAN 1 listen to, right ah, with whose shall prevail? Simply so, our father our mother 4 old people are idle have nothing to do, also ask them to help our bookkeeping, this more 4 books, 6 books can not be wrong. What if most records are the same? But there is a point ah, your that point of doubt can not tell mom and dad, if the old man mistakenly think we want to divorce bookkeeping, must break our legs can not.


Therefore, the six books together bookkeeping, in order to facilitate account checking, zhang SAN family agreed that every day’s income and expenditure recorded on a piece of paper, a piece of paper a day. This piece of paper can be called a block, day by day, block by block, linked together is called a blockchain.


If this example is down to earth, it will explain the blockchain clearly. Six ledgers simultaneously record the income and expenditure of Zhang SAN’s family, and the daily records are packaged into a block, which is the block chain.


What is a blockchain?

Let’s summarize the blockchain again. First, it is a database, which records the income and expenditure of Zhang SAN’s family. Second, it’s decentralized, six books, none of which is unique, all six books are valid if they’re the same. Third, it’s distributed, six books in six hands, it can’t be destroyed at the same time, the data is absolutely safe.


The other is the error correction problem of data. The error correction principle of blockchain is to take most as the standard, as long as the result, whether right or wrong. What about most principles? Take the Zhang Family again.


Zhang SAN’s family for every week, six people sat together with six books reconciliation, if zhang SAN in the books of a block, such as on May 1, a spending is 100 yuan, but the other five books in the record is 120 yuan, that will be subject to other five record, zhang SAN on May 1, record the block must change to come over, In addition, all the blocks of Zhang SAN after May 1st are invalid, which must be changed to be consistent with the blocks of the other five ledgers. Otherwise, all the ledgers of Zhang SAN will be invalid for you, and no one admits your ledgers. Zhang Sanxin think I than dou E also injustice, this money is I personally spend out, is 100 yuan ah. That doesn’t work either. Most people record 120, so it’s 120, or it’s not. This is the error-correcting mechanism of blockchain. Follow most of the rules.


If the data of Daughter-in-law Zhang is also wrong, and there is a data error in the block of Daughter-in-law Zhang on May 2, then the block data of Daughter-in-law Zhang on May 2, including all subsequent blocks, are invalid, and must be changed to the same as most people.


Of course, when we say that Zhang SAN is wronged, it does not mean that the error-correcting mechanism of blockchain is wrong. In your turn, what if someone maliciously tampers with the data? Is he more likely to change a few books or most books? The answer, of course, is that it is almost impossible to manipulate most of the books at the same time. Therefore, the error correction mechanism of blockchain actually guarantees the imtamability of data.


What is a blockchain?

There is a saying in the bitcoin community that if you master 51% of the network’s computing power, you master bitcoin and you can change it any way you want. That’s the truth. I transfer ten bitcoins to a three, you can completely change it to transfer to you, it is also effective, the whole network of mining machines recognize this result, because you are the majority. Then Zhang SAN and I would be silly, silly also doesn’t work, blockchain is like this, only admit most of the results, whether right or wrong. It doesn’t matter what evidence I can present.


Friends may want to ask ah, that this phenomenon is possible? Theoretically possible, but practically impossible, the more computatively powerful the network, the less possible. But it has historically been possible.


One year, BitMain controlled more than 40 percent of bitcoin’s computing power. It was close to 51 percent, and when bitMain counted up, it was horrified to find that it already controlled so much computing power. Make a statement, voluntarily withdraw some of your computing power, and promise to go below 30 percent or even lower as soon as possible. Friends may wonder, why not control Bitcoin? Why would you voluntarily quit? The reason is simple: if Bitmain does control Bitcoin, who’s going to play with you? Bitcoins would be worthless, and Bitmain’s mining machines would be worthless. So, no one wants to control Bitcoin, and no one can. This example also demonstrates the imtamability of blockchain data. Once you have the ability to manipulate data, no one will play with you.


Here, you should have fully understood the blockchain, it is a database, a very pure tool, itself does not matter good or bad, it can achieve data security and imtamability, these advantages make the application of blockchain more and more widely. Some important data is also being used in blockchain technology for security and tamper-proof purposes. For example, in March 2018, the presidential election in Sierra Leone in Africa used blockchain technology. Why? Because the parties don’t trust each other. Nobody believes the vote. There’s no way out. Then let’s use blockchain, this data can not be changed. This is also the application of blockchain, not to say that when we talk about blockchain, we mean digital currency, they are not the same thing.


Now in the market, a variety of products under the banner of blockchain emerge in an endless stream, but if you really understand blockchain, you will find that most of the so-called blockchain concept products are crooks. I hope this program has helped you.


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