What is the “Blockchain”?
Introduction to the Blockchain — Post #11
Each computer running the bitcoin software is called a node. The bitcoin network consists a collection of nodes.
Each node has a file that contains every transaction that has ever occurred on the bitcoin network. This file is called the blockchain. Every 10 minutes another block is added to the chain.
Every block contains all the transactions that occurred in the prior 10 min. All blocks are the same across the network because referencing the blockchain is how users prove ownership.
Traditionally, buyers prove ownership to sellers by asking their bank (or card company) to prove they have money. The bank then tells the seller, “ yes the money exists,” and can send the money to the buyer’s account.
In bitcoin, every user has a copy of the blockchain. To prove ownership, the buyer can point to the block when they received funds. The seller can verify this on their copy of the blockchain.
The blockchain is public and necessary for validating funds and recording transactions, so there is no need for another company to be involved.
Currently (as of the time of writing) the blockchain is 139.68 GB, and you can view it here.
This is post #11. The others are located here.
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