Although I wanted to jump right into investing and watching my money just roll in, the logical part of my brain knew that I needed to understand fully what Blockchain was and how it played into the big picture. I started watching a video and I fould a site that explains what Blockchain is in plain English.
Blockchain is a public record of transactions. It’s also distributed, so instead of one person controlling everything, there are thousands of computers around the world connected to a network, and these thousands of computers together come to an agreement on which transactions are valid.
Whenever someone makes a transaction, it is broadcasted to the network, and the computers run complex algorithms to determine if the transaction is valid. If it is, they add it to the record of transactions, linking it to the previous transaction. This chain of linked transactions is known as the blockchain. Since the transactions all reference the one before them, you can figure out which ones came first, thus ordering them. Full article here.
Ok, since I have some IT experience and understand networks, this made sense to me. I guess the next question was…How is the Blockchain secured?
I will cover this in my next post on mining and tokens.