The Programming of Blockchain

By CIOReview | Friday, March 30, 2018

The extremely complex nature of blockchain makes all efforts of simplifying it, disintegrate with many more complexities. Not that it is difficult to understand, but the various methodologies of conveying the idea of blockchain to a non-enthusiast is often a herculean task. Though there are some elements of programming involved, the governing boundary conditions and how a decentralized ledger is hosted on numerous peers, makes it tedious to understand. Consider Bitcoin for example. The value of Bitcoin boils down to smaller units called satoshis, which is considered to be the most minimal denomination of Bitcoin.

It is a common notion to assume X units of a particular currency are sent to a recipient when a transaction is made. In reality, there is simply a citation to the Unspent Transaction Output (UTXO), which in turn, funds the transaction. The simplest way of representing UTXO is through documentation on a peer-to-peer ledger. It is as good as making an entry into a registry. If a Bitcoin wallet of a person shows a certain value, it is merely an equivalent of all the UTXO. Therefore, there aren’t any coins or tokens being circulated, but rather detailed documentation of transactions within the network, which justifies the monetary value of cryptocurrencies. Even though the existence of a physical value for such cryptocurrencies is debatable, the underlying protocols of the ledger that adds value to the cryptocurrencies such as Bitcoin showcase the transparency and security brought to the table by the blockchain network.