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What is Blockchain?
Simply put, the blockchain is a database. It is a database that contains specific data and it's constantly growing. Blockchain has a very important role:
1. Once the data is stored in the database, it will never be modified or deleted. Every record on the blockchain is permanent.
2. It is not an individual or organization that maintains the database; it is maintained by thousands of people, and everyone has their own copy of the database.
So, how do you keep everyone's copy of the database in sync? Suppose there are ten people in the network, and everyone has an empty folder and a blank page. Whenever someone performs an important operation on the network, such as transferring funds, they will broadcast this to everyone in the network.
Everyone records on the page until the page fills up. When it is full, everyone needs to confirm the content of the page by solving math puzzles. Solving math puzzles can ensure that everyone’s page has the same content and will never be modified. Those who complete it first will receive a certain amount of cryptocurrency.
Once the page is confirmed, it will be added to the folder, and then a new page will appear, continuing the process.
Blockchain
Over time, pages (blocks) containing important records (transactions) will be added to the folder (chain) to form a database (blockchain).
What is stored in the blockchain?
Blockchain can be used to store any type of data, and the data in it has a certain value. Bitcoin's blockchain stores financial transaction records. Bitcoin's role is similar to that of currencies such as the U.S. dollar, while Ethereum is different.
Ethereum is not just a currency such as the U.S. dollar or British pound. Ethereum is an ecosystem which can be used for building applications non-fungible tokens and even other cryptocurrencies, etc.
