What is the blockchain technology behind digital currencies?

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Bitcoin and several other major cryptocurrencies plunged in value last Thursday. What is the blockchain technology behind these digital currencies?

Blockchain underpins cryptocurrencies. A blockchain is a digital database managed by a decentralized network of computers. The blockchain records transactions chronologically and publically.

Distributing data through a peer-to-peer network hosted by millions of computers makes it far less vulnerable to hackers than a centralized network and protects files from getting lost.

When a user requests a transaction on the blockchain, it is broadcast to the peer-to-peer network of computers, known as nodes. The nodes validate the transaction then combine it with other transactions to create a new block of data for the digital database.

That block, which is both permanent and unalterable, is then added to the existing blockchain and the transaction is completed.

Probably the most well known type of blockchain transaction involves cryptocurrencies such as Bitcoin or Ethereum, which has a value token called Ether.

Blockchain technology can also be used record transactions for digital information such as contracts, or records like land rights and medical files. It may also have a huge impact on the Internet of Things.

RUNDOWN SHOWS:
1. Decentralized computer network records blockchain transactions chronologically and publically
2. Blockchain difficult to hack, protects files from getting lost
3. Nodes validate transaction
4. Transaction combines with other transactions to create data block; block added to blockchain
5. Depiction of cryptocurrencies and volatile market
6. Depiction of blockchain uses

VOICEOVER (in English):
“A blockchain is a digital database managed by a decentralized network of computers. The blockchain records transactions chronologically and publicly.”

“Distributing data through a peer-to-peer network hosted by millions of computers makes it far less vulnerable to hackers than a centralized network and protects files from getting lost.”

“When a user requests a transaction on the blockchain, it is broadcast to the peer-to-peer network of computers, known as nodes. The nodes validate the transaction, then combine it with other transactions to create a new block of data for the digital database.”

“That block, which is both permanent and unalterable, is then added to the existing blockchain and the transaction is completed.”

“The most well known type of blockchain transaction probably involves cryptocurrencies such as Bitcoin or Ethereum, which has a value token called Ether.”

“More than 900 cryptocurrencies are currently traded on the internet and the market is notoriously volatile.”

“Blockchain technology can also be used record transactions for digital information such as contracts, or records like land rights and medical files. It may also have a huge impact on the Internet of Things.”

SOURCES: CNBC, Blockgeeks, Recode
https://www.cnbc.com/2017/12/21/bitcoin-price-cryptocurrency-falls-by-more-than-2000-in-12-hours.html
http://www.cnbc.com/2017/07/17/ethereum-bounces-back-from-crash.html
https://blockgeeks.com/guides/what-is-blockchain-technology/
https://www.recode.net/2017/7/14/15967484/blockchain-bitcoin-jeremy-allaire-circle-kara-swisher-lauren-goode-too-embarrassed-recode-podcast