"Blockchain" in Action
Here is a pretty simple example of how blockchain works in a real life case study:
In Latvia, a cash register prints out receipts with the usual total and receipt number.
AND a hash of previous receipt to generate a hash of the current "block number".
The next receipt then has its own total and receipt number, and takes the just generated hash, and creates a new hash.
What this means is that the entire trail of receipts, total amounts and final ending amount can be checked and verified to be true.
What this means is that no transaction in the past can be altered after created.
What this explicitly means is that no receipt can be tampered to have its amount changed.
Does this have ramifications to accounting systems and even combating employee fraud? You tell me.
This, ladies and gents, is how "blockchain" works to secure the data in the chain.
But, facking tulips, amirite?
The answer: You can. (I even wrote about the different terminologies here)
You just don't get an anti-fragile, decentralized system.
And if I want my money to be on the system, I prefer it to be anti-fragile and decentralized, thank you very much.
And oh also all the nifty benefits of sending a placeholder of value digitally through the internet.
But still, even I'd admit, blockchain is a good database upgrade.