Since we are speaking about blockchain, let me say what I understand blockchain to be, using simple terms. If I am right, this will help other Tuggers better understand blockchain, and figure out what is being said in this thread. And, if I am wrong, others here who know more will correct me. That will help
me better understand blockchain, and figure out what is being said in this thread!
As I understand it, blockchain uses complex mathematics but the concept behind it is simple. It is a way to authenticate something, and help prove that it is genuine and not fraudulent. For example, it is used in Bitcoin to prove that a piece of internet currency is real currency, not counterfeit currency.
In blockchain, users (who could be a person, or a business) sign a file associated with something of value. Additional signatures can be added, but the earlier signatures are almost impossible to remove or change. Adding more signatures helps to vouch that the thing of value is genuine.
The thing of value must be in the form of a piece of information. These days, the thing of value is often a piece of internet currency such as a Bitcoin. However, vouching for something such as a bank account or credit card report could also be done with blockchain. A timeshare deed is also information, so it could be vouched for in the same way. (Although I think vouching for a timeshare deed, or any deed, with blockchain is completely unnecessary. Deeds already have a system for making sure they are real, and it works fine.)
The signatures used in blockchain are in the form of complex mathematical codes that are very hard to break. Therefore, blockchain only became available recently, because computers that can generate and read such codes only recently became readily available.
I have never heard an explanation of why it's called "blockchain," but I would guess it's because each signature is a block of numbers, and eventually a chain of them builds up.
OK, here's a part I'm not sure of. (Not that I'm all that sure of the above parts, either!) Bitcoin requires even more computing power than would, say, using blockchain to vouch that a credit report has not been tampered with. Each individual bitcoin is a mathematical code that is extremely hard to generate. Essentially, a bitcoin consists of an extremely long number that must have very rare mathematical characteristics. The only way to find a number that meets the requirements is to take many, many numbers and keep testing them until you find a number that meets all the rules. This is called "mining" for bitcoins, and involves huge amounts of computer processing. As time goes on, all the easier numbers are found, and "mining" bitcoins becomes more and more difficult.
OK, tell me how I did!