An Illustrattion of Blockchain by Excel sheet

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Today we're going to talk about an easy to understand the explanation as to what is blockchain?

It's one that you'll be able to remember but I have to admit it's one that most purists are going to hate. so exactly what is blockchain?

I like to describe it as an excel sheet most people use an excel sheet at one point in time or another. When we talk about transactions in the blockchain think about it as a row in the excel sheet. In every row in the excel sheet there are a number of different fields. There's a transaction ID, a time and date stamp.
The wallet from the wallet to and the amount of Bitcoin that are being transferred and that's a row in the excel sheet it's an entry in the ledger and it's an entry in the blockchain.

The second thing we should do is put a group of rows together a group of rows together we refer to as a block. The group of transactions on the blockchain are is indeed one block.

In Excel there's an interesting concept called protected cells. Protected cells are password protected, meaning that I can see them but I can no longer edit or change them unless I have the right password in the blockchain. They use protected cells and they call them immutable or unchangeable cells and in mutable cells are locked with cryptography.

In the blockchain when I get ready to put together a whole new block of transactions before I password protect the second block I include the password from the first block. Thus creating a chain of blocks on the blockchain every group of transactions includes the password from the previous block of transactions again linking those blocks together.

In creating a chain in blockchain core principles we talked about immutability, this locking of cells with passwords makes them immutable makes them unchangeable. The second thing I want to talk about with the excel sheet is who has the ability to add new transactions and to create these new blocks in the blockchain those people are called miners and they run a whole bunch of different computers called mining rigs and the mining process when we talk about mining Bitcoin.

What we're really talking about are adding new transactions into the blockchain and there are two parts :
The first part is just to verify and validate every transaction and
The second you have to put it into a block and password protect the block.

So this is the process of mining and adding new things because of the fact that there are thousands of individual mining rigs. we are now talking about not that it is a decentralized point. It's not a central one-liner, not one computer doing the work there's a whole lot of computers. It is a decentralized group of computers. We verify and validate transactions and add them to the blockchain.

Now I'm going to take my little excel sheet and I'm going to spread it across thousands and thousands of people and now everyone has an identical copy of the excel sheet and because they have an identical copy of the excel sheet, everyone knows what the true version is. if someone's individual copy of the excel sheet gets changed either because they had a data corruption or because they were a really good hacker and they broke the cryptography on their one copy then their copy doesn't align with and doesn't match the thousands and thousands of other copies and because of that we all know that those copies should be excluded.

All of these different people work together and when they work together they reach what we call consensus on what is the correct version of the excel sheet or they reach consensus as what is the correct version of the blockchain and where the not transactions are indeed verified and validated. So that ability to distribute across thousands and thousands of people is another core principle of blockchain.

The next thing I want to talk about is what do you put into an excel sheet. Now normally you put into really simple kind of equations and really simple information building simple numbers and text but what you wouldn't put into a blockchain is like 9 terabytes of data in the event. You had 9 terabytes of video from Game of Thrones technically you could put that into an excel sheet but you wouldn't and even if you did to distribute that excel sheet to thousands and thousands of people with 9 terabytes of data in it just doesn't make any sense. so if it doesn't make sense to put it into an excel sheet it probably doesn't make any to put it onto a blockchain.

Similarly if you're talking about an ad network and when I say an ad network I'm talking about banner ads on websites. You might have hundreds of thousands of individual banner ad impressions and the data associated with those. That's way too much data to put into an excel sheet you would never do that.

In the same way it's way too much data to put into a blockchain. You wouldn't do that either what you would do is put in a summary of the information and put that into the blockchain and that's where it starts to make sense. The last parallel as to what is a blockchain compared to an excel sheet as when we talked about Macros. Macros are small pieces of code and they run in the contents of the excel sheet.
Little programs in blockchain speak sub block chains, not all block chains have the ability to run something called Smart Contracts and Smart Contracts are small pieces of code, small programs that run on the contents of the blockchain.

Now as I said at the beginning the purists will absolutely hate this description because I've glossed over a whole lot of different things but hopefully you'll understand a blockchain really is as simple as an excel sheet in groups of rows called blocks that are password protected where new entries are added by miners who add new entries to the excel sheet and the excel sheet is spread around and distributed across thousands and thousands of people this has been watching essentials and what is blockchain.

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