Blockchain & Cryptocurrency - An Illustrated Introduction

in #blockchain7 years ago (edited)

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@sndbox toolkit posts are designed to help cryptocurrency newcomers get acquainted with the ins and outs of Steemit and the blockchain ecosystem. If you have requests on components or systems related to Steemit that you would like to see explained, please let us know in the comments below.

What is Cryptocurrency?


Cryptocurrency is a digital currency that is created, held and distributed through an online network. (Also called virtual currency, digital money or tokens.)

  • The word crypto is derived from “cryptography” which is the practice of secure communication. Cryptography is all around us. It’s an artful form of code-making embedded throughout history, anywhere from WWII's infamous Enigma Machine to secure website browsing of today.

What is Blockchain?


Blockchain is a technology. It's a new infrastructure for data and the backbone for digital currencies like Bitcoin and STEEM. Instead of having a central server where all of your information is held and must pass through, the Blockchain allows for multiple “centers” to distribute and validate incoming information simultaneously. It's a smart and secure mechanism (not just for digital currencies) but also for big-scale community problem-solving.

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Building a Block


So what exactly is Blockchain and what does it look like? To better understand how this smart network grows, first we need to know how it’s put together. Before a “Block” becomes added to the “Chain” it must first receive four essential bits of information:

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  1. Identification : An ID code or what’s called a “Hash”
  2. Timeline : The Hash number from the previous block, organized chronologically
  3. Transactions : All transfers between a sender and receiver
  4. Public Key : Identifies both a sender and a receiver

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Assembling the Chain


The “Chain” itself is like a super intelligent ledger. What’s a ledger? Think of a library book. A ledger is the little yellow piece of paper tucked behind the back cover. This regimented paper is a recorded list of people who have borrowed the book in the past. It’s a timeline that logs the due date for the book to be returned alongside the name of the person who borrowed the book. In this example - the more book-readers there are, the better validated and secure the chain of information becomes.

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So, who puts all this together?


Chains are built by a network of super computers all over the globe. Collectively, they curate the growth of a blockchain, individually, they are called “peers” (also nodes or witnesses or miners depending on the type of blockchain that they operate on).

For the STEEM blockchain - these network-builders are called “witnesses”. STEEM Witnesses are voted on by the entire Steemit community. These individuals make their case for being elected and are trusted members of the community. (Curious to learn more? Click here.)

Faster, Stronger, Collectively Independent.


With this new infrastructure for data - worldwide information can be held more securely, cost less, and be distributed way more efficiently. In a global economy that relies on a growing brain of data everyday; Blockchain is proving to be one of the most disruptive technologies in the internet era. With future posts, we'll speak to the many ways that this burgeoning ecosystem is transforming industries and practices and propelling the world wide web into the 21st century.


Thank you for reading! For any suggestions on potential tutorials or resources, please let us know in the comments below. Be sure to follow us for all of our daily posts and weekly newsletter.


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Excellent little piece of information I'm sure will be helping many new comers to this realm of crypto-currency magic of the BlockChain Technology! Powerful words you used here, "Faster, Stronger, Collectively Independent.", I like it!

All for one and one for all! Namaste :)

Many thanks @eric-boucher! Always a fan of your kind words and helpful feedback :)

It is my pleasure really, all for one and one for all!

Namaste :)

Great explaination

Thank you @uxair! Glad you found it helpful.

I really love this sndbox style illustrations !

Hey thanks @steeminator3000! We like your style too ;)

upvoted my friend because

Is this an invisible blockchain jump rope??

I hope it isn't late. There is still no translation into Indonesian language, so I decided to make it one.
Here is the translation into Indonesian
Have a nice day @sndbox

upvoted for visibility

Much needed breakdown. Thanks boys

Glad you dig it!

Nice visuals. Thanks

Thanks for the support @masterofcoin :)

Great illustrations! That is key for communicating these ideas I believe.

Thanks! Simple clean illustrations are so key. Even these may be too complex. We're going to constantly revise and reduce them. It helps us all explain just a little bit better :)

I always respect your ideas about this platform....

Thank you very for the info
Keep it up