Blockchain Basics: A Non-Technical Introduction in 25 Steps

When using the blockchain, each user has to tell the system in advance how much he or she is willing to pay for having the transaction executed. The account that hands off ownership also pays the transaction fee.

transactions are a good way to describe any transfer of ownership,

the Byzantine general problem.1

one consistent version of the state of ownership. Cryptography is used to implement identification, authentication, and authorization.

The purpose of the blockchain is to achieve and maintain integrity in distributed systems.

In order to accommodate smart contracts, the blockchain technology has been extended by the capability to execute programming code . This extension has transformed the blockchain from a distributed system that mainly focuses on storing transaction data into a distributed system of virtual machines that executes smart contracts.

and maintaining integrity in purely distributed peer-to-peer systems that have the potential to change whole industries due to disintermediation.

In this discussion about the blockchain, the term is used as follows: As a name for a data structure As a name for an algorithm As a name for a suite of technologies As an umbrella term for purely distributed peer-to-peer systems with a common application area

Inventory data just state or claim ownership, while transaction data explain and thereby justify ownership.