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more powerful hardware. 1.2.3 Definition At last we can attempt a full definition of what a blockchain is and how it works. A blockchain is a verifiable transaction database carrying an ordered list of all transactions that ever occurred. Transactions are stored in blocks. Block creation is a purposely computationally intensive task. The difficulty of creation of a valid block forces anyone to spend a certain amount of work. This ensures malicious users in a big enough network cannot easily outpass honest users. Each block in the network points to the previous block, effectively creating a chain. The longer a block has been in the blockchain (the farther it is from the last block), the lesser the probability it can ever be removed from it. In other words, the older the block, the more secure it is. Figure 1.7: The blockchain One important detail we left in previous paragraphs is what happens when two different nodes find different but still valid blocks at the same time. In a sense, this looks like the same problem 17PDF Image | Intro to Ethereum and Smart Contracts
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