The blockchain itself has nothing special. It is just a data structure in a programming language that has properties such as its identification number, a date of creation, the content (list of transactions in this case) etc... and a link (ID number) to the previous block if it exists.
When you first launch a technology on top of a new blockchain there is no block. The very first block could be following anything: distributing the first few coins from an airdrop (free coins) or ICO (Initial Coin Offering) where the public can buy some. Attributing those new coins to their owner will create a transaction which will be added to the first blocks.
The blocks and blockchain are simple concepts, what’s complicated is how it is used in cryptocurrency. How to make them safe, how the witness validates transactions and sign each blocks by using encryption technologies which is why we say cryptocurrency and not just digital currency.
Finding a block does not create a financial asset. The witness is just rewarded for doing the witnessing and block generating work. Just like authors and curators, it is another “job” in Steem, Witnesses are rewarded with what is called the Producer Reward. I’m still unclear about what’s process prints out more Steem in the system and fills the various reward pools
The blockchain itself has nothing special. It is just a data structure in a programming language that has properties such as its identification number, a date of creation, the content (list of transactions in this case) etc... and a link (ID number) to the previous block if it exists.
When you first launch a technology on top of a new blockchain there is no block. The very first block could be following anything: distributing the first few coins from an airdrop (free coins) or ICO (Initial Coin Offering) where the public can buy some. Attributing those new coins to their owner will create a transaction which will be added to the first blocks.
The blocks and blockchain are simple concepts, what’s complicated is how it is used in cryptocurrency. How to make them safe, how the witness validates transactions and sign each blocks by using encryption technologies which is why we say cryptocurrency and not just digital currency.
Ok, so then what gives this process, a value?
Peace.
Are you asking what gives value to the currency?
How does finding a block, create a financial asset?
Peace.
Finding a block does not create a financial asset. The witness is just rewarded for doing the witnessing and block generating work. Just like authors and curators, it is another “job” in Steem, Witnesses are rewarded with what is called the Producer Reward. I’m still unclear about what’s process prints out more Steem in the system and fills the various reward pools