What is blockchain? What can blockchain do?

Blockchain is an information technology term that cleverly combines technical expertise in a wide range of fields, including mathematics, cryptography, the Internet, and computer programming.

Simply put, blockchain is a distributed shared ledger or database, stored in the data or information, with decentralization, non-tamperable and so on.

These features ensure “honesty” and “transparency” of blockchain and lay the foundation for blockchain to create trust. These characteristics enable blockchain to solve many information asymmetries, allowing users to collaborate without the participation of third-party intermediaries, without having to trust each other, and realizing collaborative trust and concerted action among multiple subjects, thus creating a reliable cooperation mechanism with broad and rich application prospects.

Blockchain’s “blocks” are similar to the hard drives we use to store data. Each block is where the information on the blockchain is stored. Encrypted by cryptography technology, this saved information data cannot be tampered with.

The blockchain system verifies all data generated during the period, such as transactions and records of when the block was edited or created, and stores it on a new block. This block is connected to the previous block, and each block must contain information about the previous block to take effect, forming a chain, hence the “blockchain”.

Blockchain is essentially a decentralized database. What blockchain really does is allow users to collaborate without the involvement of third-party intermediaries without having to trust each other. In a blockchain network, no party can tamper with data on the blockchain.

To run and independently verify the status of the blockchain, the user must download specific wallet software. Once the software is started, it is connected to other computing devices in the blockchain network to upload or download information (e.g., transactions, blocks). The software will download a block of data, check its authenticity, and then pass the verified information broadcast to other computing devices.

So we got a blockchain ecosystem of hundreds, if not tens of thousands, of computing devices. These computing devices are called “nodes” and all run the same software, simultaneously updating and broadcasting transaction data with each other, realizing the true and centralized nature of blockchain data.

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