A lot of you here are into crypto's and trading. A lot might be tech savvy as well. However, I am sure some of you do not really understand what the blockchain is and how it can be abused in the case of Bitcoin. I will give you the definition from Wikipedia which say's it way better than I could.
Easy, it is a continuously growing list of records, called blocks, which are linked and secured using cryptography. Each block typically contains a hash pointer as a link to a previous block, a timestamp and transaction data. By design, blockchains are inherently resistant to modification of the data. Harvard Business Review defines it as "an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way." For use as a distributed ledger, a blockchain is typically managed by a peer-to-peer network collectively adhering to a protocol for validating new blocks. Once recorded, the data in any given block cannot be altered retroactively without the alteration of all subsequent blocks, which requires collusion of the network majority.
Blockchains are secure by design and are an example of a distributed computing system with high Byzantine fault tolerance. Decentralized consensus has therefore been achieved with a blockchain. This makes blockchains potentially suitable for the recording of events, medical records, and other records management activities, such as identity management, transaction processing, documenting provenance, or food traceability.
The first blockchain was conceptualised in 2008 by an anonymous person or group known as Satoshi Nakamoto and implemented in 2009 as a core component of bitcoin where it serves as the public ledger for all transactions. The invention of the blockchain for bitcoin made it the first digital currency to solve the double spending problem without the need of a trusted authority or central server. The bitcoin design has been the inspiration for other applications.
Well, the easiest way I can explain it is this. Bitcoin's blockchain, if ever presented with two conflicting truth's, will pick the longest chain. The longer the chain the more likely this is the true version represented by the network. This is built in and is a great logic to use....unless someone gains 51% of the mining power behind Bitcoin.
Basically, if I control 51% of the bitcoin mining as a whole....then I can mine faster than ANYONE else on the network. If I can mine faster than anyone else, then my conflicting truth will have a longer chain than the REAL blockchain. This, at the simplest level, means I can then make transactions that are NOT reported to the network. Basically I can make trades that nobody but me would know about.
Big money, governments or really large criminal organizations could gain this ability. Until recently nobody really cared about Bitcoin other than those who believed in the future. Criminals got off the train a while back due to Monero. I would hate to see them jump back into the game. We as a community have to MAKE sure we do not allow this to happen.
If I am wrong in any way about what I have described feel free to blast me. This is my understanding though, and a big worry of mine. Let me know what you think! Thanks for taking the time to read.
