The blockchain is scarcely discussed outside of crypto currency forums and bitcoin discussion groups. But what is it really? The blockchain is a tokenized series of encryption strings, which each individually represent a single “coin”. These strings need be generated based on the original problem being solved and are known as blocks. As blocks are solved by miners, the block is added to the end of the chain and the miners receive the block reward of that coin which could be up to a few tokens. The latest solved block is where the miners continue work in cracking the next block.
The question here is what is the original problem?
The way a crypto is mined is through a manual decryption process. To start, the problem is an encrypted equation, which must be decrypted by miners. The issue is that there is no decryption key of any kind given, thats for miners to find. Using this process gives a coin the ability to continue dispensing blocks for a long time because no single entity has the power to mine it all at once. Also as the miner client landscape changes, changes can be made to the calculation algorithm which produces block rewards in order to keep scarcity up and keep the network active for more time.
If a coin is mined out, the network will flat line because no more miners will be generating new blocks, the only activity after that point will be in trading and monetary exchange value. By keeping a coin minting, we have the ability to improve the code through new implementations since users will still be actively minting coins.
Using the blockchain we can verify with 100% certainty if a transaction has occurred thanks to the fact that every single running client has an up to date blockchain which caries record of every single transaction. This is why crypto’s hold real world monetary value. Thanks to the blockchain we can do business on line knowing that no one is double spending their crypto currency, thus ensuring the value of the token. We can’t just print infinite bitcoins because it would make them worthless. the entire foundation of monetary trade is based on this simple but foundational rule.
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