What is Blockchain and WHY was it Developed? (A Simple Explanation)

What is Blockchain and WHY was it Developed? (A Simple Explanation)


This video explains what blockchain is, why it was developed,
how it is being used now, and how could be used in the future. So let’s start off with the first question:
What is blockchain? The word “block” is meant to represent a list of Records
While the word “chain” is meant to describe the linked relationship between these lists of Records
So imagine a list of Records linked to another list of Records
That’s basically what the term blockchain describes: linked sets of Records
The first known use of blockchain type technology was in 1991 by Stewart Haber and
Scott Stornetta. As our world was evolving toward the digital paradigm
Concerns about the accuracy,
Security, and modifiability of digital records were raised. At this time, use of third party time stamping services was the only
option available that attempted to address these concerns
However, relying on time stamping services that could be susceptible to bribes or security breaches was not ideal
This is because it is imperative to maintain the integrity of digital records by ensuring they cannot be modified
back dated or forward dated
Otherwise digital record storage was not likely to be adopted or to succeed. this brings up the next question
Why was blockchain developed? Haber and Stornetta worked on developing a technology that automatically ensured the accuracy,
security and modifiability of digital records using computers and mathematics
They decided to employ use of cryptology to achieve the desired level of privacy and security for digital record-keeping. Now
Cryptography is the study of secure communications while
Cryptology is the term used when you study the application of mathematics to cryptography. In
1992 Hebert Sanada and a Mr.
Bayer enhanced their cryptographically based blockchain technology by adding the use of hash trees, which are also known as Merkle trees
Let me break this down for you further first. Let’s talk about hashes
I’m going to give you an idea of what hashes and hash functions are using Social Security numbers we receive in the United States.
Here’s a list of some random names that are commonly found in the United States.
You can see they all contain different combinations of letters and each of the names are different lengths.
Next let’s imagine a list of unassigned Social Security numbers.
You can see all of these Social Security numbers are in a
standardized format. Each Social Security number contains a set of three whole numbers, a dash, two whole numbers, a
dash, and four whole numbers. Now
Let’s imagine the United States uses a computer function to map each person’s name
to a unique social security number. Regardless of the length of a person’s name or the letters used within a person’s name, the computer
function maps it to the standardized social security number. Now back to hashes. Any computer function that map’s
arbitrarily sized data, like a list of people’s names, to a fixed form of data, like Social Security numbers, is called a hash function.
Now the output of the hash function is a fixed form of data,
just like a social security number, and this output is commonly known as a hash value,
hash code,
digest, or simply a hash.
Going back to how the word “block” in blockchain represents a list of Records,
Let’s imagine a list of social security numbers or hashes
Imagine that each list of social security numbers are stored in blocks and
each block represents a region. And the
child blocks stemming from this represents states, and
a child block stemming from that represents cities, and etc
That should give you a very simplistic idea of what a hash tree is:
blocks of hashes stemming from each other that resemble a tree with branches and leaves
The incorporation of the hash tree to Haber’s Tornetta and bears 1992 blockchain type technology allowed them to securely store
larger sets of digital records. Onto the next question, how is blockchain being used now?
It wasn’t until 2008 that the first distributed blockchain was created for use as the underlying
technology of Bitcoin, a digital currency. It was made by an anonymous person or group that goes by the pseudonym Satoshi Nakamoto. A
common misconception is that bitcoin is synonymous with blockchain. That however is not the case. The blockchain
facilitates the secure and private transfer of the digital currency called Bitcoin, as well as posts the
transactions to a public ledger to maintain data integrity
Right now most financial transactions are facilitated and recorded through the use of private parties such as banks, Visa,
MasterCard, and other financial institutions.
The blockchain foundation allows Bitcoin currency transactions to occur securely and privately,
while maintaining the accuracy of the transactions by posting a time-stamped unmodifiable record of the transaction to a public ledger
without the use of a third party.
Instead, it uses computers,
mathematical algorithms, and cryptology to perform these functions
Which allows a direct connection between the Bitcoin users by removing the need for a third party.
So again imagine a list of transactions as a block and each block is being recorded on a public ledger
So as blocks of transactions are recorded on a running ledger, it creates a chain of blocks
Hence the term blockchain. So where is this blockchain and what does the term public ledger mean?
Every transaction between Bitcoin users is processed by a computer that has a Bitcoin processing software on it called Bitcoin client.
This computer is connected to other computers via an online network.
So imagine a computer with Bitcoin processing software on it connected to the Internet, which
allows the computer to connect to a network of other computers online
with Bitcoin processing software. The technical term for each computer that participates in the blockchain network is the word “node.”
So the blockchain network has several nodes or computers that it saves all of the recorded blocks of transactions on.
This is where the word distributed or decentralized ledger comes from.
Since every transaction is saved on every node or computer with Bitcoin client software on
the Bitcoin network, the ledger of all Bitcoin transactions is described as distributed.
So if you have a laptop with Bitcoin client software and keep it connected to the Internet and the Bitcoin network,
you will have the entire Bitcoin transaction ledger saved on your computer.
So if your computer breaks it will not affect the ledger because the same ledger is being distributed on several other computers around the world.
So the network cannot be taken down at any specific point
All of these computers process and record blocks of transactions to this public ledger that is saved on all the nodes
connected to the Bitcoin network.
The blockchain process creates unique hashes for each transaction, as I mentioned before, that functions to make transactions secure and private.
These hashes, as well as time stamps and other unique identifiers, are created for each transaction and recorded on the public ledger.
So anyone can go and look at the Bitcoin public ledger and see all of the transactions
When you send or receive
Bitcoin, you can identify your transaction by the unique hash
that’s created, the address of the user
It was sent to, which is a randomly generated set of numbers and letters, or the IP address it was sent from.
So on to the next question:
How can blockchain be used in the future?
How else can we utilize blockchain technology besides facilitating digital currency transactions like it does for Bitcoin? There are several
applications for blockchain technology in multiple types of industries. Blockchain technology creates transparency,
validates and secures records,
manages smart contracts, and eliminates middlemen or third parties.
Some examples of how blockchain could be used includes recording land record transactions or mortgages,
maintaining digital smart contracts like wills or promissory notes,
managing digital identities like passports or birth certificates,
housing distributed cloud networks to store information like documents or media, and a myriad of other exciting things.
Thank you for watching my video!
Blockchain will revolutionize our economy and lives over the next few years.
What do you think blockchain technology has in store for us in the future? What
other information should we know and understand about blockchain that I may have missed?
Leave your comments below.

69 comments

  1. Best explanation video on Blockchain technology. Nice production value as well. Props to your production team. Thanks for posting.
    I truly believe Blockchain is the future.

  2. if you read these i forgot to put your reference code is there a way to add it dont no if you get anything for it sry an thanx for the infoe

  3. When initially writing a program I can write a function and hide it to modify any later functions without anyone knowing even if I give them the source code for later functions and later developers would never know; therefore, how is the Blockchain secured unless you are the one writing the program from the beginning? Not knowing who wrote the Blockchain makes it completely unsecure, yes? You can't have the entire bitcoin network saved on your computer as you said unless you have the worlds largest mainframe. So how is that possible?

  4. Thank you Casey, for your dedication in producing all the training videos on Cryptos. All the videos are of high standards. Well done.

  5. Your videos are great. Easy to understand and professional. But I have a security question. You said do not put your phone number on social media sites. If I don't put my phone number on Facebook, how do I set up Authy? There is no link to my phone for 2 step verification. Thank you!

  6. Thank you Casey!! Hands down the most informative vid ive seen explaining blockchain. Looking forward to the wallet tut that you mentioned that you are making. There are a ton of pump and dump channels out there, and eventhough you content creators try to caveat with "i am not a financial advisor…" i would love to hear your thoughts on ico's and some of the smaller cap coins/tokens. Have you heard of that one exchange where u can mirror another persons buys? I wouldnt mind taking a stab at copying a few of your picks. Looking forward to more vids Case. Thanks again.

  7. ALL GOOD TO MAKE IT SIMPLE..CENTRALIZED AND WE WANT TO BE FREE OF A LL BANKS…DECENTRALIZED…BUT IF THE FEDERAL MAKES IT A CENTRALIZED SYSTEM…MOST LIKELY..WILL BLOCK WHOM EVER THEY WANT FOR WHAT EVER REASON…THEY WILL SAY WHO GETS TO EAT AND WHO DOES NOT…I HOPE IT DOES NOT …IT WILL BE VERY BAD..IF IT DOES BETTER HAVE GOLD AND SILVER TO BARTER FOR FOOD…SO THATS BLOCK CHAIN AS WELL..

  8. as always… you are AWESOME sauce!! now, I'm thinking about investing in Ripple, as a newby, what do you think
    about Ripple and any other cryptos you might suggest..thanks always;)

  9. I would like to invest in cryptocruncy but I don't know which one is better, it will be secure in future or not ,

  10. Great use of the social security for your example; that helped a lot. I really got a lot out of this, thank you.

  11. Some people just have a knack for “breaking things down”, and you sure have that aplenty! Thank you for the Vid. Subbed 👍🏻.

  12. Casey, it’s fine if I give my password wallet block chain empty , she say just gonna customizing in to her system and then I can change my password again it’s that’s right I can trust ? Help pls

  13. Blockchain can allow anyone to build their own Blockchain and develop their individual business using this technology. The growth for Blockchain Technology is huge and will become the future.

  14. You are amazing, is a pleasure listen to you. You make it so easy to understand…Excellent video productions you make Casey.
    Keep up the good work.

  15. Helllo Case, great videos. I want to ask , how would I set up a payment option on my website for cryptocurrency. I have Paypal but I want to upgrade to crypto.

  16. You asked us to tell you what our thoughts were on Blockchain and where it was headed. I think it will become a sentient being that will one day enslave us as it controls all our money and secrets. I think it’s going to not work out for us too good. But it will be a pretty awesome sight watching it take life.

  17. I think right now the only way it’s drawing interest is by giving away millions of dollars in fluctuations and trading. To get us hooked. Who is the shoki nakomoto? It’s a powerful group of people. We’re all blindly going along on this thing with very murky origins.

  18. Thanks Casey! – I'm quite lost but I appreciate your videos. I'm new to Crypto and I just found @t This is a great site for total beginners. It helps me understand the basics and then…..I need to come back here. Thanks again Casey!

  19. Hi, Casey (CryptoCasey)! I hope this post will find you well! Thank you, for sure, for your informational video!
    A major question is raised in my mind, though, with regard to which human being or human beings exactly was/were responsible for the invention of blockchain. I just became aware of a Serge Belamant when amongst some assignments that popped up for me to choose from for writing articles for an article writing company was a request regarding an article on, well, essentially Belamant.
    You note at "0:34" Stuart Haber, W. Scott Stonetta, &, later, add a Dave Bayer as the inventors who collaborated to bring about blockchain. You say they did so in "1991" & I did find videos on YouTube of Haber & Stonetta pertaining to blockchain. But I've also come upon information about the supposedly French born Serge Belamant & him being named as the inventor of blockchain & his work on it being said to have been in, if I recall correctly, 1989! Can you imagine my consternation? So why the absence of him from your mention? Why the seeming contradictions? I'm at a genuine state of quandary & I don't have a ton of time to figure out who's who & what's what, etc. Any clarifications to offer? Thanks.
    Oh, & by the way, apparently there is a significant conflict going on between different entities over the patenting of blockchain. Know what's up with that? Thanks.
    Be blessed!

  20. I did not learn nothing, G! I cannot concentrate on the content, because you are too attractive and I'm thinking about some other things all the video..

  21. Dear Crypro Casey, I read this article today on "CoinDesk" that Sweden establishes a cryptocurrency as their official coin. The name of "Kryptonex Research Group" is mentioned in the article as their preferred firm for the purchase and marketing of their coin. Do you know anything about this Group? Is the article a legitimate one? Thank you.

  22. I have been seeing people posting good comments about Mr Elton Jonathan i never knew his strategy is good as this, Mr Elton has changed the life of so many traders today and i pray that he should keep on doing this good work, through his strategy and guardian i was able to recovered all i lost in the hands of scammers and incompetent account managers, with Mr Elton i can boast of $10k to $13k usd every week with that i always recommend him to my fellows traders.

  23. Can someone stor important information with block chain online that are 100% safe, like this cloud space services but not hackable?
    And could not a AI hack it anyway becourse its smarter and faster and simultaneously all over the place?

  24. Thank you for breaking this down for us. I am planning on getting into block chain. I will watch more of your videos as I feel Blockchain is the future.

  25. woo!!!! that was crystal clear explanation, when I started in this bit coin business I was introduced by this individual and he recruited me to start accumulating income through this platform we had some altercation during the stage of system maintenance and it got to a point where my block chain account he sort of like disconnected from wherever and the dashboard  appeared to be unusual e.g. no daily profit reflected on my hand set  as I was used to see my daily income accumulation. now tell me could he be having excess/control to my funds but he said he will connect me at a cost, am confused please help

  26. Thank you Casey for your honest and valuable contribution to those of us trying to understand Cryptocurrencies. Your information is free from bias and that is a breath of fresh air. I hope you can keep us updated on this space as it develops. You are the best! Thank you.

  27. Well Binary options trading is a form of investing through predicting the movement of various assets such as gold, silver, the USD etc. It is very similar to other forms of investing such as forex and stock trading. It’s however simplier, has relatively fewer risks (in the sense that you will always know in advance what you might lose) and can offer larger payouts. The idea is that you can make money in binary options only if you treat it as a real form of investing. Here are the investment plans and potential earnings
    $250 to earn $2500
    $350 to earn $3500
    $450 to earn $4,500
    $550 to earn $5,500
    $650 to earn $6,500
    $750 to earn $7,500
    $850 to earn $8,500
    $950 to earn $9,500
    $1500 to earn $10,500 .. If interested, You can reach me via email at ([email protected]) let's get started"

  28. Crypto Cassey…I love your simple explanations about Blockchain and trading with Bitcoin…I would like to watch you give advice on actual trading though…you explained how to get started very well but it's intimidating still for me anyways…not knowing what to do once I buy some bit coin…does that make sense?…I realize you probably don't want to risk some form of liability but if you actually showed how to do some trading and what the results were…I would definitely watch….but again…great vids!

Add a Comment

Your email address will not be published. Required fields are marked *