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| bloc:blockchain [2025/12/08 10:39] – Simon Grant | bloc:blockchain [2026/04/20 19:04] (current) – external edit 127.0.0.1 |
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| | This topic is part of [[gt:digital|Digital & media]]. |
| ====== Blockchain ====== | ====== Blockchain ====== |
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| ## What is it? | ===== What is it? ===== |
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| A blockchain is a list of records that once verified, is virtually impossible to change. Packets of digital information form a ‘block’, and the blocks are linked together chronologically in a ‘chain’. A Blockchain can be used for transferring things (digital assets) securely between individuals, without the need for a centralised authority, such as a bank or a state. | A blockchain is a list of records that once verified, is virtually impossible to change. Packets of digital information form a ‘block’, and the blocks are linked together chronologically in a ‘chain’. A Blockchain can be used for transferring things (digital assets) securely between individuals, without the need for a centralised authority, such as a bank or a state. |
| <caption> | <caption> |
| _Lots of videos out there introducing blockchain. This is a good one._ | _Lots of videos out there introducing blockchain. This is a good one._ |
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| </caption> | </caption> |
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| Put another way, it’s a distributed database (or ledger), with cryptography built in, so that anything written to that database is secure, and can be trusted, without having to trust individuals or institutions. Bitcoin and other [cryptocurrencies](/cryp/cryptocurrencies) are not blockchains – they’re based on blockchain technology. | Put another way, it’s a distributed database (or ledger), with cryptography built in, so that anything written to that database is secure, and can be trusted, without having to trust individuals or institutions. Bitcoin and other [cryptocurrencies](/cryp/cryptocurrencies) are not blockchains – they’re based on blockchain technology. |
| ### History | ==== History ==== |
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| In the early 80s, David Chaum proposed an electronic payment system with ‘[blind signatures](http://lowimpactorg.onyx-sites.io/wp-content/uploads/chaum-blind-signatures.pdf)’, for privacy and prevention of criminal activities. He founded [Digicash](https://en.wikipedia.org/wiki/DigiCash) to implement this system in 1990, but it folded in 1998. The Digicash system still required a bank to verify transactions. | In the early 80s, David Chaum proposed an electronic payment system with ‘[blind signatures](http://lowimpactorg.onyx-sites.io/wp-content/uploads/chaum-blind-signatures.pdf)’, for privacy and prevention of criminal activities. He founded [Digicash](https://en.wikipedia.org/wiki/DigiCash) to implement this system in 1990, but it folded in 1998. The Digicash system still required a bank to verify transactions. |
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| <caption> | <caption> |
| [Bitcoin white paper](https://lowimpactorg.onyx-sites.io/wp-content/uploads/bitcoin-2.pdf) by the anonymous Satoshi Nakamoto, in which blockchain was introduced to the world. | _[Bitcoin white paper](https://lowimpactorg.onyx-sites.io/wp-content/uploads/bitcoin-2.pdf) by the anonymous Satoshi Nakamoto, in which blockchain was introduced to the world._ |
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| </caption> | </caption> |
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| ## What are the benefits? | ===== What are the benefits? ===== |
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| Blockchain transactions are transparent, immutable, immediate and irreversible. They allow transactions to occur securely between people who don’t know or trust each other. This is in contrast to transactions in the conventional (fiat) economy, where mediation between parties is required for trust; or a [mutual credit](/mucr/mutual_credit) economy, between known and trusted participants (payments in cash are immediate and irreversible too, but come with a whole new raft of logistical problems). | Blockchain transactions are transparent, immutable, immediate and irreversible. They allow transactions to occur securely between people who don’t know or trust each other. This is in contrast to transactions in the conventional (fiat) economy, where mediation between parties is required for trust; or a [mutual credit](/mucr/mutual_credit) economy, between known and trusted participants (payments in cash are immediate and irreversible too, but come with a whole new raft of logistical problems). |
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| <caption> | <caption> |
| Cryptocurrencies are the best known application of blockchain technology. | _Cryptocurrencies are the best known application of blockchain technology._ |
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| </caption> | </caption> |
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| ## What can I do? | ===== What can I do? ===== |
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| Every blockchain has its own associated crypto token ([here’s a list](https://coinmarketcap.com/)) and so to pay for transactions, you need a digital wallet, a plug-in to your browser, and when you submit something to the blockchain, you have to digitally sign your transaction. These things are barriers, because most people are not used to doing things that way. For more technical people, the barriers aren’t very high, and there are a lot of things that people do now that they certainly weren’t used to a generation ago. But the geekiness of blockchain is probably the thing that’s holding it back. | Every blockchain has its own associated crypto token ([here’s a list](https://coinmarketcap.com/)) and so to pay for transactions, you need a digital wallet, a plug-in to your browser, and when you submit something to the blockchain, you have to digitally sign your transaction. These things are barriers, because most people are not used to doing things that way. For more technical people, the barriers aren’t very high, and there are a lot of things that people do now that they certainly weren’t used to a generation ago. But the geekiness of blockchain is probably the thing that’s holding it back. |
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| <caption> | <caption> |
| Times headline, Jan 3 2009: Chancellor on brink of second bailout for banks. This text was included in the very first blockchain, leading some to believe that anti-bank sentiment was a motivation for its anonymous inventor. | _Times headline, Jan 3 2009: Chancellor on brink of second bailout for banks. This text was included in the very first blockchain, leading some to believe that anti-bank sentiment was a motivation for its anonymous inventor._ |
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| </caption> | </caption> |
| </WRAP> | </WRAP> |
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| ### Geeks vs non-geeks | ==== Geeks vs non-geeks ==== |
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| If you’re a developer, blockchain work involves lots of interesting problems, like decentralised consensus, cryptography, writing applications, open source, as well as economic and political philosophy – so it won’t be boring. You can write applications to existing blockchains, like Ethereum, so that non-technical users can interact with that blockchain; or you can copy the Bitcoin code from Github, modify it to create your own blockchain, give it a name, get it online, and then initiate the first transaction, which would form part of the Genesis block for your new blockchain. You could then work with others, including beginners, and show them how to use your blockchain – for whatever you’ve decided it can be used for. | If you’re a developer, blockchain work involves lots of interesting problems, like decentralised consensus, cryptography, writing applications, open source, as well as economic and political philosophy – so it won’t be boring. You can write applications to existing blockchains, like Ethereum, so that non-technical users can interact with that blockchain; or you can copy the Bitcoin code from Github, modify it to create your own blockchain, give it a name, get it online, and then initiate the first transaction, which would form part of the Genesis block for your new blockchain. You could then work with others, including beginners, and show them how to use your blockchain – for whatever you’ve decided it can be used for. |
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| <caption> | <caption> |
| Huge computer banks are required to do the puzzle-solving involved in ‘proof-of-work’ algorithms that are used to generate cryptocurrencies like Bitcoin. ‘Proof-of-stake’ algorithms used in cryptos like EOS or Faircoin use far less electricity. | _Huge computer banks are required to do the puzzle-solving involved in ‘proof-of-work’ algorithms that are used to generate cryptocurrencies like Bitcoin. ‘Proof-of-stake’ algorithms used in cryptos like EOS or Faircoin use far less electricity._ |
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| </caption> | </caption> |
| If you’re of a geeky persuasion, and think you’d like to work as a blockchain developer, [here’s a good place to start](https://web3js.readthedocs.io/en/v1.2.7/). There are courses, but it might be better to learn by doing. You could volunteer on open source projects – contact Steve (below), who is often looking for volunteers. | If you’re of a geeky persuasion, and think you’d like to work as a blockchain developer, [here’s a good place to start](https://web3js.readthedocs.io/en/v1.2.7/). There are courses, but it might be better to learn by doing. You could volunteer on open source projects – contact Steve (below), who is often looking for volunteers. |
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| ## Further resources | ===== Forum ===== |
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| | This topic belongs to the section [[gt:digital|Digital & media]]. You can ask questions or add information on the corresponding [Forum section](https://forum.growingthecommons.org/t/digital). |
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| | ===== Further resources ===== |
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| - [Faircoin](https://fair-coin.org/) - proof-of-stake coin | - [Faircoin](https://fair-coin.org/) - proof-of-stake coin |
| - [What is the Blockchain](https://pixelprivacy.com/resources/what-is-the-blockchain/) - intro to blockchain in plain English | - [What is the Blockchain](https://pixelprivacy.com/resources/what-is-the-blockchain/) - intro to blockchain in plain English |
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| ## Specialists | |
| | ===== Related topics ===== |
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| | - [Low-impact money](cofi:collaborative_finance) |
| | - [Low-impact IT](liit:it) |
| | - [Free & open source software](foss:open_source) |
| | - [Cryptocurrencies](cryp:cryptocurrencies) |
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| | ===== Specialist curators of this topic ===== |
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