Guides

Blockchain

Blockchain

Introduction
Blockchain: An Analogy
A Bit More Technical

Introduction

Let’s recap: cryptocurrencies are globally accessible, digital currencies, enabled by blockchain technology.

They:

  • Are peer to peer.
  • Have low fees.
  • Don’t rely on a central authority.

So what’s this blockchain thing anyway?  

Simplifying greatly, it acts as a distributed ledger.

  1. Ledgers are used to organize and keep track of transactions. By recording transactions as they occur, ledgers create an archive detailing who owns what.
Typical ledger.

   2. Distributed means that anyone can access it, and anyone can check its validity (if they have the right        software).

Distributed ledgers.

Because the ledger is held publicly, we don’t need to use a bank or any centralized authority to verify transactions or holdings–we can do that ourselves!

Let's take a look at an example to understand how verification works. The nuances are definitely not “beginner's guides” material (see our in-depth sections for more detail), but to provide a general idea we’ve prepared an analogy.