Welcome all lovers of steemit! :)

We hear often:

"Tell me what's going on with this blockchain? I read some articles, but I still do not understand... "

Many of them contain too much detail that is not relevant to the average user, using a language incomprehensible to most people - it ends up being more confusing to readers. Without worrying about the technical description, here is a blockchain explanation that could be understood by everyone....

First of all, what is blockchain?

Blockchain is a distributed database, also referred to as a distributed main ledger - as in accounting. To simplify things we simply call it a register. Instead of being scattered we say that it is divided. In an even broader context, let us think of the block as an entry in this common register ...

In this article we will call blockchain a common register. Each of its complements is a new position ...

This technology is quite simple if it breaks into small pieces. And the contemporary version of this joint registry is undoubtedly a technological triumph that will probably shape our future.

Of course, this is not the only shared registry that is stored in your location. There are thousands of copies stored on personal computers and corporate servers all over the world - hence the decentralized date. Such a register can be used in many ways, but as an example, we will be sending and receiving money, as at this moment it is most popular.

When Alex wants to send money to Alice, a new item is created. This item is sent to hundreds of other computers that have a copy of it. These computers confirm that the transaction is permissible and ultimately agrees (or does not) that everything is fine and authorizes it. The smallest detail must agree on each copy.

Imagining it was as if Alex and Alice had hundreds of friends who watched as Alex handed over the money and unanimously agreed that he really gave her money. They also paid attention to other aspects of the transaction, such as whether Alice received the right amount of cash.

"What is different from a bank?"

The advantage of this joint registry is that you do not need a bank or other central company - you do not have to trust any financial institution ... no intermediary is needed.

The joint register does not belong to any person or organization. It belongs to everyone who holds a copy of it, but does not mean that anyone holding a copy has control over it. In addition, this common register is invariable and irreversible. Each inserted position will exist indefinitely, as long as the Internet exists. If Alice would like to give Alex money, it would be another item rather than canceling the original transaction.

Bearing in mind the decisions taken on the creation of technology, the manipulation of positions in this common register is impossible. If a person with one or more copies of his registry on his computer tries to fake them, these changes would be rejected by other computers used in the verification process - the data would not match.

"So where are the money stored, if not at the bank?"

We have come to the most difficult part to understand: for cryptanalysts like Bitcoin, there is no vault - this position in the register is money.

Let's imagine for a moment that the first entry in the book was created by Peter - the creator of the new cryptanalyst - who wrote "From now on there are 1 million tokens." Then Peter passes the tokens to many people, creating a new entry in the registry for each transaction. Peter sent 500 tokens to Alex, 1000 to Alice and so on ...

In order to receive these tokens, Alex and Alice had to give Peter his wallet address - which is the equivalent of the account details in the case of a bank transfer. Alex and Alice have very long secret codes that give them access to the registry entries for their wallets. That way they can only create a new entry in the registry from the tokens they have received. At the moment Alex created a new position that says he handed over 50 tokens to Alice's wallet, loses control of her - Alice gains it. So millions of people can have a copy of this item without the possibility of adding a new item referring to the remaining 1 million tokens that are documented in a common register.

Over banking

At this point you may think that it does not sound like something that would change the world at all. It's just a way to verify ownership of something digital even if there are identical copies ... right? If you think about it long enough, it will start to dawn on you how great this is. Until now, the copy of something digital was indistinguishable from another. If the mp3 would be used as a currency, there would be no way to determine who the copy of "Madonna - Like a Virgin.mp3" is and for which I want to sell my services or goods and which is a copy. Suffice it to say that before this technology the creation of a digital currency was impossible - someone could just copy the token million times and become a millionaire.

Apart from the financial distortion, even the most sophisticated ways of using this technology have in fact nothing to do with money. Given the already explained principles of action, I will give some real examples as the blockchain can really change the world. The basis of these examples is our common register, which creates contracts through smart contracts. We will not go into detail about the idea of ​​a smart contract, but it allows us to determine the type of parameters when, why, and how to add a new entry in the registry, which is the result of maintaining the goals of the contract parties.

The future of democracy? In the Horizon State project the technology of the joint registry is used to vote. As a result, Bitcoin (representing the currency) was converted into voice tokens. Instead of issuing Bitcoin, you vote. This brings the same benefits as the cryptanalyst: their authenticity and legality is confirmed by many computers, and the virtual voicemail with voices will never be compromised.

The future of music? What if you would open an application similar to Spotify, but this Spotify would not pay you a subscription, and he would not transfer fees to artists, and instead would you pay directly to the artist? For example, after listening to the song for 35 seconds, 5 cents would be passed from your wallet to the performer. Other computers would verify that the length of the song you have listened to agrees with the one you paid and would make a corresponding entry in the common register. Ujo Music is working on this idea at this point.

The future of data storage? Instead of storing files in the Dropbox cloud or Onedrive, your files would be split into small pieces and stored in thousands or millions of computers around the world. The record of which files are yours and where they are located could not be changed - only you have the key to see all the parts as a whole, and no company has your files. This is the concept that Storj is working on (I count on his success).

The future of power power? Imagine a country full of houses equipped with Tesla Powerwall. Instead of being out of the network, they are very closely connected with it - but they do not pay the supplier for their kWh. In practice, they would not need traditional power suppliers in the future. Instead, houses would automatically create, store, and trade energy between themselves, based on which neighbor needs more energy and who has it in excess. Thanks to blockchain, it's no longer science fiction - it's being developed everywhere, from Australia to New York.

"I want to enter it - save me for the future!"

I am afraid it is too early - these are innovative ideas. A large part of the announced blockchain projects have not yet been released, those that already work can be compared to the first websites that were premature and experimental. It is anticipated that blockchain-based technologies will be a big part of the Internet for 5-10 years, and just as with the internet, you will not have to understand how they work to use them.
You already have an insight into what goes on behind the scenes, while the next phase of the Internet is coming to our lives, eliminating the centralized companies that are on its way.

I'm sure you still have lots of questions. As I mentioned at the beginning, the article was not meant to cover every detail, but by having such an explanation, striving for an even better understanding of technology should be much simpler than before.

That's all! Go and tell your friends about blockchain...

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