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WTF are Blockchains?

If you've been following along, I've been covering different iterations and developments of the internet. In my first post, I specifically covered Web3 and the vision for a decentralized internet. Some of the primary technologies behind that vision are blockchains. Which I'm sure leads you to ponder, "WTF are blockchains?"

Blockchain is a way of storing information in a secure and decentralized manner. Think of it like a digital ledger that records transactions between people or organizations. The ledger is shared and updated by many people, making it difficult to manipulate or change any one entry without everyone knowing.

One of the key features of blockchain is its use of cryptography, which is another way of saying that the information is encoded in such a way that makes it very difficult to decipher without the right key. This makes blockchain a very secure way of storing sensitive information like financial transactions or personal data.

To keep the blockchain secure, different methods are used to verify transactions and add them to the ledger. Two popular methods are proof-of-work and proof-of-stake.

Proof-of-work involves solving complex mathematical problems in order to validate transactions and add them to the blockchain. This process can be resource intensive, requiring both large amounts of computing power and energy. However, it is a very secure way of verifying transactions because it would take a tremendous amount of resources to manipulate the blockchain.

Proof-of-stake, on the other hand, works by allowing users to "stake" their own cryptocurrency as collateral in order to validate transactions. Validators are chosen based on the amount of cryptocurrency they have staked, and they are rewarded for adding valid transactions to the blockchain. This method is less energy-intensive than proof-of-work, but some argue that it is less secure because validators have an incentive to act in their own self-interest rather than in the best interest of the blockchain as a whole.

Overall, blockchain is a secure and decentralized way of storing information, and proof-of-work and proof-of-stake are two methods used to keep it secure.

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