Hello, and welcome to Dash School I am your teacher, Amanda B Johnson And this video series is going to provide you with a complete and basic understanding of how a blockchain works As well as how Dash uses one, and how Dash in general works and serves as a digital cash

This series requires no special pre-knowledge on your part, and is intended for everyone With that said, lets get started So, speaking of Digital Currency, How could such a thing exist? How could I send you some bits over the internet that would somehow be interpreted as money? Well, lets think about something we're all familiar with Email So how about this? Could this email, which states that it represents one e-Money be used to buy things that cost one e-Money? Technically, it could

If enough people start passing these around and accepting them for goods and services This would be a primitive sort of digital currency It wouldn't be a very good one however, in that I could do this: If I had sent you this e-Money for say a subscription to your Weekly blog (Thanks for that!) I could also send that very same email to my friend Sam, to my cousin Bob and to my neighbor Mary Now all of a sudden, where we started out with just one e-Money, We now have 4 Poof! New e-Moneies were simply created out of thin air

And I could technically do this as many times as I wanted You can see how this is problematic Because it means that our money supply can be rapidly expanded, in a completely unaccountable way If I can create as many money units as I want, This currency would be what is called "infinitely inflatable" Why wouldn't we want unlimited, unpredictable inflation? Lets consider Gold for a moment

You know, that really valuable metal, shiny rock What would happen if say, and Asteroid would hit the Earth That was made of gold, and suddenly increased the available supply of gold by a Trillion? So that there were gold coins lying around everywhere you look You wouldn't even be able to step out your front door without kicking over a pile of gold If gold were as common as pebbles, Do you still think people would be willing to trade say oh a car? – for an ounce of the stuff? I don't think so In the same way that Gold would be devalued if it's supply were increased by a Trillion, same goes for money Kind of like this As the supply of money increases The purchasing power, or what goods and services each individual unit of that money will get you, goes down As an example, in the United States, there used to be something called "Penny Candy"

That was because one penny would buy you a piece of candy Now, a lot of people simply throw their pennies away; in the trash can because it will no longer buy them anything If any new monetary system is to be considered worthy of your attention, it's got to not be like that So going back to our email example; ^THAT^ How can we be sure that anything digital is not infinitely inflatable? Is the digital realm not the land of copy and paste? Yah, like that

To prevent the copy and paste problem "inflation" from taking place on our special email money, e-Money, what if we tracked every email that was sent on a kind of ledger? Like this And what if we built a kind of wallet software that read this ledger, so if I tried to send you 2 1/2 e-Moneys, my wallet would know I only have one This concept of a digital ledger makes up the entire foundation of digital currency or as some also call it, crypto-currency And that foundation has a name A Blockchain

And now you can be confident that any time someone drops this fancy word around you, all they're really saying is Digital Ledger But if it's a Digital Ledger, why call it a Blockchain? What does that mean? Well, it has to do with how this ledger works Going back to this concept of a ledger, The most important thing we have to make sure of, to make sure that our monetary supply is open, honest, accountable, auditable – we have to make sure that the numbers are trustworthy How can we make sure, for example, that I won't do something like this: Wouldn't that be convenient for me? Or how do we make sure that I don't do something like this: Alice never should have crossed me Well, the answer is that no one gets to change the ledger

They only get to update it Let's shrink this down Here's that shrunk down copy of our ledger, And it's time stamped If we want to change who owns what, We have to add an update And on and on, so that anytime that I, you, Bob, Alice or anyone using the e-Money system wants to send e-Money, it gets included in an update After a bit, you get to see where this digital ledger gets it's name Each update to the ledger is called a block, and the cumulative result of this, is a chain Hence, Blockchain

Now you might be thinking to yourself, hum, that seems like a novel way to try to do money, but who gets to make entries into the blockchain? Ah, when do they get to make entries into the blockchain? Any old time they want? And why should we trust that people making entries into the blockchain are making accurate entries? Well, my friend, that you would even wonder such a thing, tells me that you are clever enough to have a complete understanding of all things Blockchain and digital currencies So why don't you hop over to episode 2 to find out the answers to your questions (preview of next episode plays)