Everyone is talking about the infamous blockchain, but what is it really, and how does it work?
I'm going to give you an explanation that you can understand.
Hi, I'm Jo Roderick.
There weren't many videos about these topics that were easily understood by your average person on the street.
After completing the money miniseries, I realised that I needed a blockchain prequel, so here it is.
While I comprehend a fair amount of all things crypto,
I also understand that it's far too techy and convoluted for most folks.
I am going to correct that oversight, and encourage you to be better informed.
So, no mention of hashes ... oh wait ... I just did.
Never mind, no mentioning of forks either. Okay, no more techy talk.
Blockchain chain technology is a method of saving digital data of any kind.
It isn't simply a currency or any particular type of 'thing'.
The blockchain is not Bitcoin.
Bitcoin uses a form of blockchain technology to perform it's banking tasks, and run the cryptocurrency.
How exactly does it work? Well, think of a road.
A road isn't a car, or a truck, or even a motorbike.
It's a platform for travelling of any kind, whether you are on a bicycle or on foot.
The blockchain is like a freeway for that data to travel on.
This data is stored on all participating computers.
At this point, it mostly resides on larger servers and computers of the folks participating, but that's changing.
So what sets blockchain apart from just ordinary data that resides on servers across the planet?
You might have heard the terms, centralised, and decentralised. First, let's start with the obvious.
Examples of centralised data are institutions such as banks, or governments.
The origin of this data is administered by one person or group.
This means that the control over the system is centralised.
Most of us are familiar with this system because it's what we know.
Decentralised data, is just that. It has no central point of storage, control, or even entry.
It's also encrypted so no one can view the content of the data, unlike centralised systems.
Sounds like secret spy stuff?
Sorry to disappoint you, but it's far simpler than that because it's fairly automated.
The code that was written into the particular blockchain is democratic software.
It does as it was told to do before inception. This prevents meddling by unscrupulous people.
Herein lies the beauty and security of blockchain technologies.
It has removed the moral element from the transactions of the blockchain.
Without getting overly technical, the blockchain is written in 'blocks' of data. Like chunks.
This information is then copied, verified,
and endlessly checked by every computer participating ... in the blockchain.
Everyone involved in that blockchain will maintain a block of that encrypted data.
This model makes fraud almost impossible, and I'll explain why.
Let's assume that I pretend to have ten Bitcoins, and I attempt to buy a car with it.
Yes, you can actually buy stuff with cryptocurrencies;
it's part of the future we are already experiencing.
When I forge the payment, the thousands of computers holding all or part of the blockchain report back.
They unanimously say, "Erm ... NO! You do NOT have that amount of Bitcoin," and the transaction fails.
The blockchain ledger cannot be altered.
I'm sure that at some point, very clever people will find a way, but right now it ain't happin'!
Another aspect of the blockchain is that the records are written permanently.
There is a digital trail so to speak. You cannot undo those entries.
The proof remains on the blockchain forever.
You cannot alter the blockchain, so there is no denying the recorded data.
As an example, let's look at Steemit, a social media platform based on a blockchain.
You can find a link to Steemit in the description below.
There is a limited window of opportunity for you to edit your typos. When that closes, it's permanent.
It doesn't matter if the president wants the post to be taken down ... TOUGH!
This is true democracy in action.
Everyone contributes to maintaining the integrity, and therefore, it's virtually incorruptible.
Okay, so that was a quick summary of blockchain technology.
A last word of warning, and please do listen to me: Blockchain databases are encrypted.
There is no one who can recover your login details for you.
If you lose your encrypted keys and passwords, it's lost forever.
Your crypto cash will float in limbo for the rest of time.
If you sign up for any kind of blockchain based system like Steemit, please store your details securely.
Remember that it is just like the PIN on your credit card or account.
Anyone with those details will have complete access to your account.
The purpose of this monetary miniseries was not to get into the world of crypto,
but rather to educate people on how they are kept prisoners by their debt and further financial institutions.
Therefore, I recommend that you go and visit a very good friend of mine
on his YouTube channel called Crypto Cruising.
He will keep you up-to-date with all things crypto.
The link is appearing at the top of your screen right now,
and subscribe to him for more news on cryptocurrencies,
blockchain technologies, and this modern world that we are entering now.
If you are eager to learn more, watch the next video in this series.
I will walk you through a layman's look at money, and debt slavery.
It's controversial, but I've been saying these things for decades.
Thank you for watching, and if you enjoyed this video, do give me a thumbs-up.