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To begin in cryptocurrencies takes a bit more than just patience. It takes timing, it takes understanding and it takes willpower.
Without these things, we can understand basic concepts of crypto, but without the underlying knowledge, we have no way of applying it. For starters, most people couldn't tell you what a hash number is, or a private key from one that's public. There are hundreds, of thousands of way to break down this information, and one of the biggest cases for this, is with mining.
For PoW networks to work, such as Ethereum, Bitcoin, Raven Coin, and more, this "Proof-of-Work" algorithm is the way in which the native blockchain breaks down the specific transactions on that network.
On Ethereum, or the Ethereum Mainnet, transactions are broken down into hashes. These hashes match a specific set of data from the blockchain. For example, every transaction, smart contract, etc. you sign, there is a hash number matching that data set.
In order to do this, you need a couple different points of data, such as a hash number (the transactions we talked about earlier), what exactly these transactions are supposed to accomplish (sending ETH from one wallet to another), and then adding that data to the blockchain as a record of what has happened.
In order to accurately break down this data and attribute it to the correct places, a number of protocols must be followed. To keep these protocols, or smart contracts, in check - we have what we call "miners".
The job of a miner is to verify these data points in a way that the blockchain can understand.
To start, blockchains, as in the name, carry transactions from a set of data, to a set of data, or a block. These blocks put together, create a blockchain. Every transaction written into a block is represented by a set of data. The only way for this data to be solved, is by brute-force, or problem solving. For example you transfer 1 ETH to your secondary account. This creates a hash number. This hash number is then verified against the nonce of the specific block. Miners - through programs - run this information, and try to match hashes with nonces in order to verify these transactions. Once a nonce matches the data provided, it will match up with the transaction hash, therefore confirming the transaction on that specific block.
With every block that passes, a new set of data is required, and therefore, new nonces, and hash numbers. This is a way not only to write past transactions into the blockchain, but ensuring these transactions are correct, follow the terms laid out in the data, and more. Because of this, data passed down from the Genesis block, or the first block in the blockchain, gets progressively harder to alter since there are numerous data points being added for every block.
What makes this even harder for people to alter, and safer for everyone else, is the use of a decentralized blockchain. Through mining, the verification process is broken down into different steps and failsafe's. In order to verify the blocks are correct, hashes must also be verified. If these hashes are mismatching, or otherwise, the blockchain has failed. However, if the majority of miners come up with the same hash, or set of data, the blockchain will continue forwards according to the parameters set by the majority.
This is how things such as BCH (Bitcoin Cash), and others came along. Certain miners did not agree with the changes or direction the blockchain was headed. Because of that, this branch of miners created their own fork. Instead of following the data sets in place, these miners decided to "rewrite" the blockchain to match their specific goals, whether that be cheaper transactions fees, more transactions per block, or otherwise. The rewriting of the blockchain at that point if known as a "fork". These forks happen when a large portion of the community either loses faith in the current project, or sees ways to improve it that aren't yet being taken, adding to the decentralization factor. In other words, a portion of people can certainly rewrite a blockchain, or fork something, for their own gain but keeping it alive and well is an entirely other story.
With that said, I hoped here to breakdown some of what it means to a blockchain, including the mass computational power of all involved, but the hardships of what it takes to keep that blockchain moving, and even more so - forking from it and becoming your own identity. Cryptocurrency in general has added a way for normal, every day people to contribute to society in a way that previously wasn't available. Eventually PoW, and PoS crypto will take the place of banks, who do much the same thing, but with much less data, less reliably and more publicly.
While yes, transactions on blockchains can be read by anybody, through wallets, no KYC is needed. Through mining, these transactions are verified or failed based on the data sets provided, not based on some arbitrary guidelines on what money should be used where, or how.
In my opinion, cryptocurrency will be, and has been, a revolutionary technology and will continue to shape the way of the future, not only through the way we process data, but also through PoW, and PoS means. The computational power to rewrite a blockchain from the start is nearly incomprehensible, especially in the terms of something like BTC, or ETH, and on top of that, you need nearly everyone else to re-write that data as well.
Because of this, people themselves can take control of their banking, transactions, and more rather than relying on banks, and others to do it for them. For that reason alone I am extremely proud or where crypto has come, and what it has yet to accomplish.
