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Blockchain – causes and how it works?
So, to understand the very essence of the blockchain and how it works, you need to understand even more deeply how money works. After all, it was thanks to the first cryptocurrency that such a technology appeared.
Physical money, through which people exchange goods with each other, is quite difficult to counterfeit. What can not be said about electronic money: only a few digits are enough to pay for a certain service.
It is precisely because physical money is difficult to copy that it is possible to determine how much capital a particular person has, simply by counting the total amount of accumulated money supply. Your self-branding
The presence of money (which is why it is called cash) allows people to transact directly with each other. And, before the advent of electronic money, there was no particular need to take into account the money supply, which is physically located in a particular person.
But there was one misunderstanding in connection with the advent of electronic bank accounts. A strange situation: in order to prove that a person has a certain amount of money, for the first time in many centuries, it is enough to present a few numbers on the screen of an improvised electronic device.
And the creator (creators) of bitcoin decided that if you create a table in which data will be entered on how much and who owns the cryptocurrency, then paper money by itself will no longer be needed. And, in part, this task has already been implemented by banks.
Cash is still important or “cash” is everything
The banking system began to sublimate the issuance of money in the form of digital records in its closed system. For example, if you make a transfer between cards of the same bank, then physically the money does not move between accounts. Only the internal balance of the banking system changes.
But with the creation of such a registry table, one problem arose: who will guarantee that someone in the system will not change their data of their own free will?
It was the formation of bitcoin as a cryptocurrency that answered this question. You can make any changes to the sequence of blocks only at the very end of such a chain.
It is similar to a train: to change the content of such a train, we do not replace cars, but add new ones to the tail. In addition, with each such action, it becomes more and more difficult to create and attach a new block. Your self-branding
Because the initial data of each new task is formed on the basis of the previous operation.
Such a perception of the blockchain, in the form of an endless composition, which has a beginning, but has no end, and will be the most correct if you want to understand what a blockchain is in simple words.