Posts Tagged ‘ledger’

Bitcoin explained through Pokemon

Explaining Bitcoin with Pokemon cards

the double-spending problem
when exchanging digital goods, how do you know somebody hasn’t sent the same asset to two people simultaneously?
use a ledger (a record of transactions) to track our trade.put our trust in this third party.we gave a copy of the ledger to every pokemon trader

forming chain of blocks

if I had duplicated my card, sent one copy out earlier then tried to send the second one to you, the history of that trade would already exist, so my second trade to you would conflict and be rejected.
change a block

that digital signature that gets put on each block? That is actually generated based on the info in the block, so changing the data (i.e removing my trade) automatically changes the signature.
changed block

an open, decentralised, non-reversible, tamper-proof digital network for trading valuable assets.

This is a simplified version of how blockchain technology works, but it’s easy to see how this tech gives Bitcoin its unique and fascinating properties.

more on blockchain in this IMS blog