How the Blockchain actually works

In times of hype, information-overflow, misconception and superficial explanations, I have taken the time to ask myself the following question:

How does the blockchain actually work from an internal point of view?

After conducting some research, I would like to share my findings as part of a series of small articles in order to help closing potential knowledge-gaps and gradually demystifying a buzzword we hear about on a daily basis but only a few are able to fully grasp.

Hence, the goal of this series is to generate a knowledge-basis around the very main concepts and ideas behind the blockchain in regard to their individual mode of operation as well as their interaction with each other in order to lay the foundation for the big picture.

In a nutshell, the main focus areas can be summed up as follows when we reflect about a blockchain for an environment characterized by completely open access including anonymous and hence potentially dishonest participants:

• Definition and description of ownership in general
• Authorization and protection of ownership within a blockchain
• Data storage within a blockchain
• Preparation of ledgers within a blockchain
• Dissemination of ledgers within a blockchain
• Adding new transactions to the ledgers
• Determining the ultimately truthful ledger
• Other risk and security considerations

Behind each focus area there is an array of specific goals to be understood and major concepts and purposes to be detailed. After addressing each area as a separate entity within a single article, I will conclude with an overview, which will draw on the past learnings and bring all isolated elements together into a final big picture.

Stay tuned for the first article and feel free to let me know what you think about it. In case you like, come by for a coffee at our office and in case you do not, drop by as well and let me know where you have a differing view 😊