The blockchain gives the ability for 2 internet users to transfer a digital piece of property between them such that the transaction is guaranteed safe and secure. Everyone can see the transfer take place, and no one can challenge the legitamacy of it (why?). [1]
Byzantine Generals Problem - Imagine a group of generals of the Byzantine army camped with their troops around an enemy city. Communicating only by messenger, the generals must agree upon a common battle plan. However, one or more of them may be traitors who will try to confuse the others. The problem is to find an algorithm to ensure that the loyal generals will reach agreement. [1]
What kinds of digital property might be transferred in this way? Think about digital signatures, digital contracts, digital keys (to physical locks or to online lockers), digital ownership of physical assets such as cars and houses, digital stocks and bonds … and digital money. [1]
The blockchain ensures that the asset can only be in one place at one time. It can only be sent by the person that owns it, and can only be received by the person it's meant to be sent to. Everyone knows who owns what at all times. [2]
blocks on the blockchain are created every 10 minutes, and contain a reference to the block before it. You can trace the blocks and information all the way back to the first bitcoin "mined". [3]
“What bitcoin miners actually do could be better described as competitive bookkeeping. Miners build and maintain a gigantic public ledger containing a record of every bitcoin transaction in history.” [3]
TO-DO: Add the bitcoin/blockchain mine process list.
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