About The Blockchain & Milcoin Network
A blockchain is a type of digital ledger that is not maintained in one central location but is instead
distributed among peers. The distributed records are kept on millions of individual computers all
over the world – in contrast to the traditional form of database administered by a single, central body
like a bank. Due to the decentralized nature of the distributed ledger, all recorded
transactions are fully traceable and virtually impervious to tampering. This decentralized ledger, or
blockchain, is synchronized within a given network via the internet, making all transactions visible to
anyone within the network. Blockchain networks can have restricted membership or be open to the
public. Because there is no centralized body with authority over blockchain networks, any individual
with sufficient technical knowledge and resources can set up a blockchain.
Every time a digital transaction is carried out between members of the network in question,
the specifics of the transaction are compiled into a “block” that is protected by sophisticated
cryptography. This block is bundled with other transactions occurring within the same timeframe
and sent out to every participant in the network. Members of the network then compete for the
right to validate these transactions by solving a complex, cryptographic puzzle, a task that requires
significant computing power. The first member to solve the problem and complete the validation
receives a reward. This process of competing for the right to validate a block is called mining. Each
validated block receives a timestamp and is appended to older blocks, creating a chain of blocks
that shows every single network transaction in chronological order.
Because any member can prove what is owned by whom at any given time, the blockchain is a completely transparent and tamper-proof record of transaction values and ownership.
