About this interactive
Blockchain is older than cryptocurrency. The idea is integrity: if old records are stored in blocks, nobody should be able to go back and quietly change one.
In the lesson's model, a block has a number, a place for data (often a ledger of transactions), a field for the previous block's hash, and its own hash, which covers the data and that previous hash. Block 1 has no block before it, so its previous-hash field is all zeros. Block 1's hash goes into block 2, block 2's hash into block 3, and so on.
Now change something in block 1. Block 1's hash changes, so it no longer matches what block 2 recorded; fix that and block 2's hash changes, which breaks block 3, and so on. You cannot change a block without affecting every block after it, and hashes that do not line up flag an integrity problem.
Because the data's integrity can be checked, the work does not need one central machine, which would be a point of weakness. Many servers hold the same chain and keep each other accountable: if one copy is off, the others notice and do not accept it, and it is brought back into line. A ledger copied across many machines is a distributed ledger. Many cryptocurrency ledgers are also public, so anyone can download them, and anyone who knows your account number can track your purchases.
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