What is blockchain technology?
We often talk about the blockchain, but let’s go into a bit more detail about what it really is as a technology? How does blockchain contribute to project transparency and why is it so important for Trade Fighter?
Blockchain is a database that stores a constantly growing list of records (blocks). These records are organized in a strict sequence, and each subsequent record stores some information about the previous record. Such a database is stored on users ‘ computers (it does not have a single server) and everyone who keeps the database has its full copy and new records are added to all existing copies.
Is it clear? Let’s explain with a simple example:
- Sasha bought 6 apples
Record this fact in the blockchain (some diary) and get block number 1. Send block №1 to Nick, Vita, Lana, Tasha and Margo (network users) — now all they know is that Sasha has 6 apples.
- Sasha gives Nick 5 apples to divide them between his friends.
Write down this fact in block number 2. Block 2 contains the unique identifier of block 1. Send this block to Vita, Lana, Tasha and Margo.
- Nick gives Vita 1 Apple.
Write this down in block #3. Add a unique identifier of block 2 . We send a block to all users.
- Nick gives Lana 3 apples to share with her friends.
Record in the block number 4. Add the identifier of the block № 3. Send out a block.
- Lana, instead of treating her friends, eats all 3 apples in a fit of hunger during the night, and when Tasha and Margo come to her for the promised apples (because they received information that Nick gave her three apples), Lana is trying to put the blame on Nick and says that he gave her only 1 apple, and the rest he kept for himself. But the entry in the blockchain tells a different story and Tasha and Margo know that Lana has eaten their fruits!
Thus, the blockchain is there to protect us from fraud within the network, making the transaction very easy and transparent!