Why Blockchain Matters: The Web3 Movement
<aside> đź’ˇ On this page, we will learn what a blockchain is, how it works, and why it matters.
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A blockchain is an immutable (can’t be changed), digital ledger (history of transactions) that facilitates the process of recording transactions and tracking data in a network; it is updated and shared across many computers in a network.
Data can be anything (from assets to information).
Read this article for a simple overview of how a blockchain works:
That was a high-level explanation of a blockchain but doesn’t tell the full story... ****
Blockchain networks are driven by systems of aligned incentives. A well-functioning public blockchain requires a community of users, miners, & developers who all play roles in a mutually beneficial network ecosystem.
A blockchain is maintained by a distributed network of parties (“miners” or “validators,” depending on the kind of chain). These parties produce blocks jointly via consensus. In simple terms, the role of who produces a block rotates randomly among the different nodes while all the nodes verify it. If the block is verified, it gets permanently added to the chain.
Trust: Blockchain’s decentralized nature means that information is stored and synchronized across a number of computers and is tamper-resistant, creating trust in the data. Consensus on data accuracy is required from all network members, and all validated transactions are immutable because they are recorded permanently. No one, not even a system administrator, can delete a transaction.