The Blockchain and How it Works

Abstract

The purpose of this research was to delve into how a blockchain algorithm is formed and operates as it does within the world of cryptocurrency. This new and rising technology has revolutionized the world of currency and commerce and is finding its way into all kinds of industries which affect us all. Understanding its key components and history was essential and the information was used to produce a cryptocurrency coin in the Python programming language myself and simulate real life transactions. From executing the simulator program myself I came to understand how and why an algorithm like blockchain is so effective and secure. Its hash values, the basic unit of each block in the chain is what makes it nigh impossible to reverse engineer, and if you manage to somehow do it and change the hash, the true current hash would be so radically different that the system or even the human eye can notice that the chain has been tampered with and any transaction would not go through so long as the chain has a most current hash value (which it always does). A broken chain would just not be feasible nor work if you do not already have the proper sequence of hash values. An in-depth understanding of the blockchain is necessary to build a secure network for any digital currency and beyond.