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Thus, a new block must be confirmed and approved by other participants of the network (this mechanism is called consensus). The actual blockchain is much more complex though. And there’re no transactions in our blockchain yet! We built a very simple blockchain prototype: it’s just an array of blocks, with each block having a connection to the previous one. Also, blockchain is a distributed database that has no single decision maker. In our blockchain adding new blocks is easy and fast, but in real blockchain adding new blocks requires some work: one has to perform some heavy computations before getting a permission to add block (this mechanism is called Proof-of-Work).

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When adding a new node (network user), it gets a complete copy of the system. After creating a new block, it is sent to each node in the block chain system. If everything is in order, the block is added to the local block chain at each node. Then each node checks the block and the correctness of the specified information.

Any new transaction in the blockchain implies the creation of a new block. Each transaction has a digital signature that guarantees its authenticity. Before this block will be added to the network, it must be checked by the majority of system nodes (computers).

imageBut what makes it unique is that it’s not a private database, but a public one, i.e. everyone who uses it has a full or partial copy of it. Blockchain is one of the most revolutionary technologies of the 21st century, which is still maturing and btc which potential is not fully realized yet. Also, it’s blockchain that made cryptocurrencies and smart contracts possible. In its essence, blockchain is just a distributed database of records. And a new record can be added only with a consent of other keepers of the database.

Thus, a cryptocurrency is a medium of exchange (like ordinary money) that exists in the digital world and uses encryption that ensures the security of transactions. Cryptocurrency is an alternative form of payment in cash and credit cards. Cryptocurrency is formed from two words - "crypto" (data encryption) and "currency" (medium of exchange).

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So, in any blockchain, there must be at least one block, and such block, the first in the chain, is called genesis block . Let’s implement a method that creates such a block: To add a new block we need an existing block, but there’re not blocks in our blockchain!

In Golang this structure can be implemented by using an array and a map: the array would keep ordered hashes (arrays are ordered in Go), and the map would keep hash → block pairs (maps are unordered). But for our blockchain prototype we’ll just use an array, because we don’t need to get blocks by their hash for now.

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