What is the popular explanation of blockchain (a trust mechanism to decrypt the digital world)

Blockchain is a distributed ledger technology, which can record and verify transaction information without relying on the trust of centralized institutions or third parties. Its core idea is to create a decentralized trust mechanism through cryptography and consensus algorithm to decrypt the trust problem in the digital world.

Basic principles of blockchain

Blockchain is a chain structure composed of blocks, each block contains a certain amount of transaction information and some additional metadata. Each block has a unique identifier (hash value) and contains the hash value of the previous block, thus forming an unbreakable chain.

The core principle of blockchain is consensus algorithm, which ensures the identification and consistency of all participants in the transaction. Through the consistency algorithm, the nodes in the blockchain network can reach a consistent transaction record and write it into the blockchain, thus realizing a decentralized trust mechanism.

Operation steps of blockchain

1. Create wallet: First, users need to create a digital wallet to store and manage their own cryptocurrency. A wallet consists of a public key and a private key. The public key is used to receive encrypted currency, and the private key is used to sign and verify transactions.

2. Initiate a transaction: Users can use their wallet address to send encrypted currency to other users. Users need to specify the transaction amount and the payee's wallet address, and use the private key to sign the transaction.

3. Verify the transaction: Once the transaction is initiated, it will be broadcast to the entire blockchain network. Other nodes will verify the validity of the transaction, including checking the balance of the sender and the correctness of the signature.

4. Package transaction: Once the transaction is verified, it will be packaged into a block and added to the blockchain. Nodes that encapsulate transactions need to calculate complex mathematical problems to obtain permissions. This process is called mining.

5. Confirm the transaction: Once the transaction is packaged into a block, it is considered to be confirmed. Blockchain has added more blocks, and the number of transaction confirmations will also increase to ensure the security and irreversibility of transactions.

Application field of blockchain

Blockchain technology is not only used to encrypt money, but also can be applied to many other fields. The following are some application scenarios of blockchain:

1. Supply chain management: Through blockchain technology, goods can be traced all the way to ensure the authenticity and safety of goods.

2. Copyright protection: Blockchain can be used to protect intellectual property rights and ensure the copyright ownership of original works.

3. Voting system: Blockchain can provide a safe, transparent and tamper-proof voting system to ensure the fairness of the election.

4. Financial services: Blockchain can provide faster, safer and lower-cost cross-border payment and settlement services.

5. Medical care: Through blockchain technology, the secure sharing and privacy protection of medical data can be realized.