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Photo by André François McKenzie on Unsplash

Beginners Guide to Blockchain

Why Blockchain?

Think for a while, every digital thing that we use today is governed by a central entity which can do anything, they can suspend a particular user from ever using that app or they can just promote a particular piece of content to be seen more as compared to some other piece of content. This is fairly common and known, but the repercussions aren’t deadly except in some cases.

  1. By trustless, we mean when the intermediaries are gone. We can create a system that is controlled by individuals, rules are set by computers which can’t be broken. Basically, a way to automate intermediaries. It’s a system you can trust to store your money account balances and stuff like that, computers are going to set the rules, so you can trust them, if your blockchain supports programs then smart contracts (basically a contract which is run by computers) are going to set what rules are set.

What is blockchain?

Blockchain does a lot of things or responsibilities it handles and that’s why its combination or you can say has different ways of defining it. In total, blockchain can be thought of as a combination of 3 things:

  1. Database: it’s a database because it stores information on it which shared among different computers
  2. Computer: it’s a computer because it has computational overhead or uses computational resources to run programs (not all but some blockchains do support programs).

How does blockchain work?

Now that we know the basics of what makes blockchain, I intentionally threw the sentence which might seem new to a lot of audiences “Group of computers working together to achieve a consensus”. Let’s write down what we know, we know that blockchain is a decentralized peer-to-peer network which stores some information and maintains a state which is considered the holy grail of everything that has happened till now on the blockchain, but there must be some questions around this right?

Thanks, Cos for this image

Consensus in Ethereum?

Every chain can have a different mechanism to reach a consensus. Since we have already described the problem that needs to be solved above, we are going to be ready about how Ethereum solves this via Proof of Work currently.

Thanks to Edureka for this image.

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