What is blockchain? What exactly is blockchain?

The concept of blockchain has actually been discussed by many people, but many people are still confused. Don't worry, today I will use the most popular way to explain my understanding to you as simply and clearly as possible.

What is blockchain

Simply put, blockchain is a multi-centralized database technology composed of computer technologies such as distributed data storage, point-to-point transmission, consensus mechanism and encryption algorithm. It can be applied to high-value scenarios such as evidence traceability, business collaboration, digital assets, data exchange, etc., providing solutions for multi-party mutual trust.

Here comes the point

The biggest difference between blockchain and previous technologies is its multi-centralized nature! Centralization, in simple terms, means that in a relationship network, there is a central role that can influence the entire network. For example, it is like family financial management:

Single-centralization: All income and expenditure of a family of two are managed by the wife. If the wife wants to buy a bag secretly, she can secretly deduct the corresponding expenditure, and the husband has no idea at all.

Multi-centralization: The husband and wife each manage a ledger, and each new income and expenditure needs to be checked by both parties. After confirmation, it will be recorded in their respective ledgers and confirm whether the ledgers of both parties are consistent. If someone wants to steal, the other party can bring out the correct account to refute and guarantee their rights.

Advantages of multi-centralization

In a single-centralized scenario, various unfair and opaque transactions may occur. Multi-centralized scenarios can ensure that everyone in the circle is equal and everyone's rights are not violated. For example, many online games are now centralized and record your backpack props. If you encounter situations such as secretly changing data and hacker attacks, it will be difficult for users to protect their own interests. If you want to guarantee your own rights, you need to reconstruct the existing centralized network and build a multi-centralized fair network environment.

The charm of blockchain

And blockchain is a new technology that can provide this multi-centralized network service. It only records all transactions that have occurred and reached a consensus among relevant personnel to ensure the rights and interests of all parties. Because of this, blockchain has received widespread attention and popularity, and is even hailed as the fourth industrial revolution after the Internet.

Summary

Through the above explanation, I believe everyone has a clearer understanding of blockchain. Whether it is family financial management or large-scale network technology, multi-centralized blockchain can provide fairer and more transparent solutions. I hope this article can help you and no longer feel confused about blockchain.