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Blockchain technology
How does blockchain technology, which also forms the basis of countless cryptocurrencies, work?
B A
A wants to transfer money to B.
A B
B receives money from A.
Transaction is represented as a block.
Block is then added to the chain, providing an indelible and transparent record of transaction.
Block is broadcasted to everyone in the network.
Approved as valid from everyone in the network.
Did you know that...
...a public, permission-free blockchain represents a new enabling technology for the coordination of human interaction? In their basic form, blockchains are so- called ledgers.
Such ledgers now form the foundation on which the economy and society are built. Banks, insurance companies and even states are ultimately ledgers that allow us to keep records of social actions and facts.
Decentralised ledgers in the form of blockchains allow for a fundamentally new form of social coordination among people. Both the economy and society are likely to undergo radical change in future and accommodate entirely new institu- tions.
Pascal Hügli Financial strategist, moderator, lecturer, debater, co-author of the book “Ignore at your own risk” («Ignorieren auf eigene Gefahr»), which clears up half-truths and misunderstandings about Bitcoin and other cryptocurrencies. An ideal book to help you understand crypto phenomena in their entirety.
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