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Blockchain for dummies

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Blockchain for dummies

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There are three main types of blockchain– public, private, and consortium.

Simply put, think of the Blockchain as a really long spreadsheet. You have a copy of the spreadsheet and your friend Martha has another copy.
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Transaction Network: The biggest use case of blockchain technology is to create a decentralized peer to peer transaction network powered by its digital assets. Blockchain can take the concept of crowdfunding to the next level. Case in point being the Ethereum-based DAO (Decentralized Autonomous Organization) which raised $200 million in just two months.

Public blockchains are permissionless, meaning that permission is not necessary to join and interact with it. Medium 2019-07-12 Non technical explanation of the block chain concept underlaying the Bitcoin network.

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Every blockchain has a set of rules known as the protocol. This consensus algorithm is normally defined by the blockchain’s creators and is followed by each computer within the system.