Avery Cheerva's blockchain explain

What is a blockchain?

What is a blockchain?

In 2008, an anonymous developer published a paper that implements a system of making money that allows individuals to trade quickly and safely without the involvement of the government or banks. Based on this paper, Bitcoin that we know was created, and the technology called blockchain became known to the public.


is a technology that creates a distributed ledger in which blocks containing data are connected in a chain form.

Blockchain is

Blockchain is a technology that builds blocks in which data is recorded in chronological order, and allows many people to share the blocks to prove the reliability of the information. If you open each word, you can understand the blockchain more easily.

First, let's look at blocks.

As shown in the figure above, one block is created every fixed time.

As shown in the figure above

one block is created every fixed time. The created block is stored with all the contents of the previous block converted (pre-hashed) into one password, and all transactions that have occurred over a set period of time are encrypted (root-hashed) and added.

Then one block will contain the contents of the previous block

and all the transactions that happened on this block, right?

As blocks continue to be created

a chain-like ledger (a ledger containing all transactions) is created. But this director is not owned by anyone, but by everyone who participates in this blockchain network, he is holding one each. That's why it's called the "dispersion" ledger.

Since each person has one account

the transaction that took place on each block will be verified by the network participants by majority vote to see if this transaction is real.

Transactions that do not exceed the majority

will be found to be false and will be eliminated without being reflected when the next block is created.

For example

on a blockchain network with 100 people participating, let's say that "A remitted 1,000 won to B."
Then it should be written in the distributed ledger of more than 51 people that "A remitted 1,000 won to B." The deal proved to be true because it was over the majority vote. And the next block will only contain transactions that are proven to be true.

Blockchain, Learn More

Characteristics of Blockchain: Decentralization The fact that A previously remitted 1,000 won to B can be confirmed immediately by an institution called the bank.
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blockchain is a technology that has emerged to create a reliable verification method without a central administrator.

So in blockchain, there’s no central manager like a bank. Instead, 100 people who participated in the network record and validate the transaction by majority vote. This characteristic of blockchain is called “decentralization”.

Characteristics of Blockchain: Transparency

Everyone who participates in the blockchain network can see what transactions have taken place on the network.

And you can also see

all the transactions that have happened before. If the block that I have now looks the same as the block that someone else has, that means that all the information recorded on my block is the same as that of someone else.

Characteristics of Blockchain: Security

If someone puts a false transaction on the books now, or manipulates them arbitrarily, the contents of the books I have and the books that others are holding are different. The manipulated books then lose their effect. To manipulate transactions in blockchain, more than half of the participants must be manipulated, which requires too much computing power, which is not possible with current computer technology.

Blockchain inefficiency is a disadvantage

Blockchain has more computations to handle as data accumulates and as network participants increase. Blockchain becomes safer because more data and more network participants make it difficult to hack, but on the contrary, efficiency decreases. Several attempts are being made in the blockchain industry to develop algorithms to ensure that efficiency is not offset even as the network grows.

Related Cases

Bitcoin Mining and Blockchain

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