The term "blockchain" is commonly associated with cryptocurrencies, NFT tokens, mining, investments, and economic pyramids in today's world. However, even among programmers and IT professionals, there is not always a clear understanding of its purpose.



The problem of authenticity arises when dealing with items that cannot be easily copied or duplicated, such as certain human values (assets) like shares, certificates of land rights, intellectual property, bonus points, theatre tickets, votes in elections, social capital, and business reputation. The existence of people who want to benefit from unauthorized copying of these values highlights the need for a mechanism to manage these values while ensuring their authenticity and fair circulation.

In cases where an external force intervenes in the fair circulation of values, like investing in a fraudulent business or buying a house from someone who doesn't know about the deal, the concept of a guarantor or escrow was introduced. However, finding a guarantor is not always possible, and they are not immune to the influence of evil third-party forces. Additionally, their services can be expensive.

Until blockchain technology emerged, the task of mediator and guarantor remained a fundamental problem for economic and social relations in society. Blockchain technology provides a guarantee of fairness in certain operations, which was previously impossible.

This is a great observation, but the Ethereum DAO hack challenges both "hack protection" and "decentralization". The Ethereum community abandoned its main principle of "Code is the law" in response to the use of code in Ethereum, and unanimously and centrally rolled back to hard fork.

Claiming to solve a problem and actually solving it turned out to not be equivalent. Similarly, decentralization is not a smooth process for Bitcoin as several large pools control nearly half of the mining, enabling them to carry out an Attack 51. While the crypt does not cover the entire blockchain, it is constructed following the same principles that do not always work.

However, there are some questions regarding the topic:

In the case of decentralized storage, having more information means more resources are needed to store it. It is unlikely that the entire amount of information is sent to all miners and updated with them after each update, especially if it's Terabytes of information.

Why are video cards mostly required for mining if the calculations are primarily mathematical?

Regarding solving problems with manners, it is unclear who sets these tasks and how they are set. Is it done through an algorithm or utility? Where is the algorithm stored? Is it centralized, and is it transmitted along with the blockchains?

Blockchain is a decentralized, distributed digital ledger that records transactions across many computers in a network. The key innovation of blockchain is its ability to establish trust and transparency without the need for a centralized authority or intermediary.

The primary purpose of blockchain is to enable the secure, transparent, and tamper-evident recording of transactions and the management of digital assets. This is achieved through the following core principles:

1. Decentralization: Blockchain networks are decentralized, meaning there is no single point of control or failure. The ledger is maintained and verified by a network of nodes, rather than a central authority.

2. Cryptographic security: Blockchain transactions are secured through cryptographic techniques, such as digital signatures and hashing. This ensures the integrity of the data and prevents unauthorized modifications.

3. Immutability: Once a transaction is recorded on the blockchain, it becomes part of the permanent, distributed ledger and is extremely difficult to alter or delete. This provides a tamper-evident record of all transactions.

4. Consensus mechanisms: Blockchain networks employ consensus algorithms (e.g., Proof of Work, Proof of Stake) to ensure that all participants in the network agree on the state of the ledger. This prevents double-spending and ensures the validity of transactions.

In the context of the challenges you described, blockchain technology can address the issues of authenticity and fair circulation of values in the following ways:

1. Asset tokenization: Blockchain enables the tokenization of various assets, such as shares, land rights, intellectual property, and even voting rights. These tokens represent the digital ownership of the underlying asset and can be securely transferred and traded on the blockchain.

2. Eliminating intermediaries: By providing a decentralized, transparent, and tamper-evident ledger, blockchain reduces the need for intermediaries or third-party guarantors. This can lower costs and increase efficiency in transactions, while maintaining the integrity of the process.

3. Provenance and traceability: Blockchain can create an immutable record of the ownership history and provenance of assets, making it easier to verify their authenticity and prevent unauthorized copying or fraudulent activities.

4. Smart contracts: Blockchain-based smart contracts can automate the execution of predefined rules and conditions, ensuring the fair and transparent execution of transactions without the need for manual intervention or centralized control.

5. Governance and transparency: Blockchain-based systems can incorporate governance mechanisms, such as decentralized autonomous organizations (DAOs), which allow for transparent and collaborative decision-making processes among stakeholders.

I see blockchain as a transformative technology that has the potential to revolutionize how we manage and secure the exchange of digital assets, while promoting transparency, trust, and fairness in various economic and social domains. Continued research, innovation, and responsible development of blockchain-based solutions will be crucial in addressing the challenges you've highlighted and unlocking the full potential of this technology.