{"id":10284,"date":"2019-10-24T09:00:38","date_gmt":"2019-10-24T07:00:38","guid":{"rendered":"https:\/\/my-life.lu\/?p=10284\/"},"modified":"2019-10-11T13:12:07","modified_gmt":"2019-10-11T11:12:07","slug":"understanding-blockchain-50022","status":"publish","type":"post","link":"https:\/\/my-life.lu\/en\/understanding-blockchain-50022\/","title":{"rendered":"Understanding blockchain"},"content":{"rendered":"
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Hailed as one of the most important developments since the invention of the internet, blockchain often hits the headlines of economic news outlets around the world. Despite the buzz, however, people frequently misunderstand blockchain or confuse it with bitcoin, which is a cryptocurrency. Today, myLIFE will cut through the noise to explain what blockchain is, how it works, what it\u2019s used for and what the benefits are.<\/p>\n

Definition<\/h2>\n

Blockchain isn\u2019t something you can poke with a finger or hold in your hands \u2013 it\u2019s not a physical object. Blockchain is a form of digital technology comparable to the apps and software packages installed on your smartphone or computer. Despite its real-world applications, blockchain itself is virtual.<\/p>\n

If we stick to a widely accepted definition, blockchain is a way to store and transfer information transparently and securely without relying on a centralised monitoring body. In other words, blockchain is a database network capable of regulating itself. All users are on an equal footing with one another in relation to the stored information (i.e. it\u2019s a peer-to-peer system). There are no administrators, so no users have more power than their peers.<\/p>\n

Just like a democratic republican political system, blockchain belongs to everyone and no one at the same time. The way it operates ensures that individual interests never supersede the common interests of the group.<\/p>\n

Blockchain is like \u201ca great big notebook that everyone can read freely and for free, and write in, but one which is impossible to destroy and whose contents no one can erase\u201d (Jean-Paul Delahaye)<\/p><\/blockquote>\n

The best analogy to describe blockchain was put forward by mathematician Jean-Paul Delahaye, who described it as: \u201ca great big notebook that everyone can read freely and for free, and write in, but one which is impossible to destroy and whose contents no one can erase\u201d.<\/p>\n

It may also help to think of it as a record, like your internet browsing history, that cannot be amended and is made available to users via a network.<\/p>\n

How does it work?<\/h2>\n

The word \u201cblockchain\u201d just refers to the fact that the information is stored in the form of blocks.<\/p>\n

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(Source: Blockchain France)<\/em><\/p>\n

To guarantee its authenticity, all information within the blockchain is encrypted. The system is based on public and private keys, which are long series of numerical characters. I can generate a signature using my private key and send it in a message to other users. Other users can then use my public key to verify the source of the message. Private keys must stay private and never be divulged to anyone. Summary:<\/p>\n