A blockchain is a public ledger agreed upon by a decentralized group of individuals keeping track of the same public ledger or ‘blockchain’ via the process of ‘mining’. Check out the article we’ve written ‘What is mining?‘ to further develop understanding the concepts at hand.
“Three people are sitting at a room each holding their own ledgers in the open: Jon, Kathy, Cory. Cory decides to give Kathy 1000 Buks, he puts the money on the table, and Jon confirms that Cory has 1,000 BUKZ less, and Kathy has 1,000 Bukz more.”
Since all the ledgers match up, there’s three confirmations and everyone agrees a new ‘transaction’ or ‘block’ has been solved and added to the ‘chain’ of blocks. This is the essence of a blockchain. It’s a chain of transactions all ever transactions. This trust system allows services to be built upon the Bukz blockchain. For example if you go online and pay for your web hosting in Bukz, after a certain amount of people with ledgers, referred to as ‘nodes’ in blockchain terminology agree the new block is indeed true, the merchant can go ahead and provide your service to you with confidence, knowing that 3/3 people agree on what happened and accounts in question have been updated correctly.
By taking advantage of the advent of ring signatures we add a layer of abstraction to your transaction. People cannot directly see your balance or where you’re sending your Bukz; to or from. Privacy should be inherent as decentralization becomes a demand for those of us with the situational awareness to foresee direction and the benefits which blockchain technology brings to the table. Let’s figure out a way to decentralize electricity.