There is a lot of enthusiasm about blockchain technology all over the world From nerds in attic rooms to the largest companies

But how does it work now? I'm going to let you look a little deeper under the bonnet of blockchain in the coming minutes And to a vital part of the engine: cryptography It is not easy, but who has a beginning of an idea how cryptography works, immediately understands more about the Blockchain And I will explain it all on the basis of a familiar story, that of Little Red Riding Hood These are the first few paragraphs of the fairy tale 'Little Red Riding Hood'

"Once there was a sweet little girl, everyone who saw her loved her very much, but her grandmother is the most of all ' Well, et cetera You can read the exact text in your fairy-tale book and we will now also save it in the BLOCKCHAIN And that goes as follows The American secret service once devised the SHA-256 encryption that is now common to blockchains is used

Anything you throw through an SHA machine (just on the internet) will be retransmitted to 64 characters Also called a hash This is how our Little Red Riding Hood text becomes: This code can not be decrypted back to the text of Little Red Riding Hood, but it is UNIQUE for the text of Little Red Riding Hood If we remove the first letter from the book alone, that will result in a completely different one code Watch

But when we put the letter back You see, it will be the right code again This is vital for the Blockchain

And why that is so, I will explain to you You will see this picture more often The blockchain is super safe because the accounting is on every pc of every user, but especially because all blocks are linked together Let's look at one block of, for example, the bitcoin blockchain You see this simplified: The bottom part is the bin with processed bitcoin transactions from users

Above is the encryption code of all transactions, just like with our Little Red Riding Hood story And also the date, with the time of that transaction But this is really important: here is the main code of THE PREVIOUS BLOCK So this encryption code comes from here And the latter is important because only now the main code for DIT block is determined So you encrypt all this information, including the main code of the previous block The main code that gets a block is therefore partly determined by the main code of the previous block And the main code of the next block is then again determined by the main code from that first block

And so you get a chain Whoever rummages anywhere in the Blockchain, falls through the basket because the encryption codes change totally – just like when we removed the first letter of Little Red Riding Hood

And if the code changes from one block to another, all other blocks know that something is not in the hook is, because their codes are no longer correct The entire Blockchain is linked to this process of Hashing with the main purpose make it impossible to manipulate the blockchain in any way