What is Blockchain by CIGI

Blockchain explained in plain English

Understanding how blockchain works and identifying myths about its powers are the first steps to developing blockchain technologies.

Blockchain is an algorithm and distributed data structure for managing electronic cash without a central administrator among people who know nothing about one another. Originally designed for the crypto-currency Bitcoin, the blockchain architecture was driven by a radical rejection of at (government-guaranteed) money and bank-controlled payments.

Blockchain is a special instance of Distributed Ledger Technologies (DLTs), almost all of which have emerged in Bitcoin’s wake.

HOW DOES BLOCKCHAIN WORK?

Blockchain is a Distributed Ledger Technology (DLT) that was invented to support the Bitcoin cryptocurrency. Bitcoin was motivated by an extreme rejection of government-guaranteed money and bank-controlled payments. The developer of Bitcoin, Satoshi Nakamoto envisioned people spending money without friction, intermediaries, regulation or the need to know or trust other parties.

Technically, the original blockchain is separable from Bitcoin, but this report will show that the blockchain design is so specific to Bitcoin that it’s not a good fit for much else.

The central problem in electronic cash is Double Spend. Because pure electronic money is just data, nothing stops a currency holder from trying to spend it twice. Blockchain solves the Double Spend problem without a digital reserve fund or similar form of umpire.

Blockchain monitors and verifies Bitcoin transactions by calling upon a decentralized network of volunteer-run nodes to, in effect, vote on the order in which transactions occur. The network’s algorithm ensures that each transaction is unique.

Video created by the Centre of International Governance Innovation.

(Visited 31 times, 1 visits today)

You might be interested in

LEAVE YOUR COMMENT

Your email address will not be published. Required fields are marked *

tether
Tether (USDT) 0,821790 1,34%
usd-coin
USD Coin (USDC) 0,821737 0,02%
zcash
Zcash (ZEC) 243,36 3,24%
tezos
Tezos (XTZ) 5,67 8,17%
uniswap
Uniswap (UNI) 31,03 1,62%
bitcoin
Bitcoin (BTC) 46.405,33 0,27%
bitcoin-cash
Bitcoin Cash (BCH) 1.227,49 8,60%
ethereum
Ethereum (ETH) 3.392,69 1,75%
litecoin
Litecoin (LTC) 305,39 0,24%
dash
Dash (DASH) 347,68 10,93%
xrp
XRP (XRP) 1,19 1,11%
cardano
Cardano (ADA) 1,42 2,38%
chainlink
Chainlink (LINK) 39,48 0,82%
compound-governance-token
Compound (COMP) 709,97 10,69%
cosmos
Cosmos (ATOM) 21,81 3,05%
dai
Dai (DAI) 0,821960 0,55%
monero
Monero (XMR) 366,25 0,77%
omisego
OMG Network (OMG) 10,03 17,97%
polkadot
Polkadot (DOT) 30,91 1,51%
siacoin
Siacoin (SC) 0,031056 4,00%
stellar
Stellar (XLM) 0,579330 2,28%
aave
Aave (AAVE) 371,10 1,57%
aragon
Aragon (ANT) 8,01 5,87%
basic-attention-token
Basic Attention Token (BAT) 1,12 1,98%
balancer
Balancer (BAL) 58,26 12,15%
filecoin
Filecoin (FIL) 116,17 2,59%
waves
Waves (WAVES) 27,26 5,06%
kusama
Kusama (KSM) 356,04 5,08%
yearn-finance
yearn.finance (YFI) 64.404,92 30,21%
curve-dao-token
Curve DAO Token (CRV) 2,71 6,10%
nano
Nano (NANO) 7,40 2,76%
tron
TRON (TRX) 0,112087 4,16%
flow
Flow (FLOW) 22,43 5,59%
icon
ICON (ICX) 2,03 3,57%
kyber-network
Kyber Network Crystal Legacy (KNCL) 2,74 2,64%
havven
Synthetix Network Token (SNX) 14,97 9,27%
qtum
Qtum (QTUM) 20,95 4,77%
kava
Kava.io (KAVA) 4,93 2,19%
decentraland
Decentraland (MANA) 1,16 4,09%
algorand
Algorand (ALGO) 1,18 2,87%
melon
Enzyme (MLN) 101,47 15,80%
ethereum-classic
Ethereum Classic (ETC) 91,39 2,38%
gnosis
Gnosis (GNO) 221,06 3,58%
keep-network
Keep Network (KEEP) 0,469556 2,51%
lisk
Lisk (LSK) 7,36 8,88%
ocean-protocol
Ocean Protocol (OCEAN) 1,16 2,13%
the-graph
The Graph (GRT) 1,18 1,62%
energy-web-token
Energy Web Token (EWT) 11,60 1,40%
dogecoin
Dogecoin (DOGE) 0,412058 8,97%
pax-gold
PAX Gold (PAXG) 1.525,78 1,26%