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If you forget about blockchain for a moment, and just focus on your last question, then you can see that the internet itself is a type of "decentralized data store", which solves one major pain point of humanity, namely, access to information. If you're old enough to remember the days before the internet, access to information beyond what your parents and peers could tell you was found in the public library. Books. I have always loved books for this very reason. They give me access to information beyond what my immediate community can (or will, when you think about it) tell me. Of course, the problem with the internet (in its present form) is that the information is so unreliable. There are just too many conflicting interests. With the library, you at least have the librarian, who, being a sort-of gatekeeper, makes sure that the library contains only "good" books. So, blockchain. What problem does it solve? It's a really good question. The blockchain is a distributed ledger, that is, basically, a key-value store. The keys are the bitcoin addresses, and the values are the bitcoins themselves. What is unique about it, and what makes it such an interesting program, is that the record of transactions is constantly being updated, because there is a bitcoin "reward" for running the program. So, even if everyone stopped trading bitcoins tomorrow, if they were just like, "nah, we're over it", the bitcoin network itself would still generate some new bitcoins, and the ledger would be updated. It's really a fantastic invention, when you think about it. The value of a blockchain is that it adds a type of "reliability" on top of the internet. Because the ledger is public, anyone can inspect it. Because the network is distributed, all the miners running the program are, for want of a better phrase, "keeping eachother honest". When you look at a regular website (or book, or movie), it can be hard to tell if the information you're seeing is legitimate/honest. Whereas when you look at the record of the Bitcoin blockchain (for example), you can be fairly confident that those keys (addresses) were assigned those values (bitcoins) at that time. To sum up, the problem that a blockchain solves is storing a reliable record of transactions, by harnessing the inherent self-interest of people to "make money" (ha ha). |