Blockchain: Blockchain Technology 2018 - The Complete Guide To New Blockchain Revolution! Mark Sloss Copyri ght 2017 Al l ri ghts res erved No pa rt of thi s publ i ca ti on ma y be reproduced, s tored i n a retri eva l s ys tem or tra ns mi tted i n a ny form or by a ny mea ns , el ectroni c, mecha ni ca l , photocopyi ng, recordi ng or otherwi s e, wi thout pri or permi s s i on of the publ i s her Li mi t of Li a bi l i ty / Di s cl a i mer of Wa rra nty: The publ i s her a nd a uthor ma ke no repres enta ti ons or wa rra nti es wi th res pect or the a ccura cy or compl etenes s of thes e contents a nd di s cl a i m a l l wa rra nti es s uch a s wa rra nti es of fi tnes s of a pa rti cul a r purpos e The a uthor or publ i s her a re not l i a bl e for a ny da ma ges wha ts oever The fa ct tha t a n i ndi vi dua l or orga ni za ti on i s referred to i n thi s document a s a ci ta ti on or s ource of i nforma ti on does not i mpl y tha t the a uthor or publ i s her endors es the i nforma ti on tha t the i ndi vi dua l or orga ni za ti on provi ded The i nforma ti on herei n i s offered for i nforma ti ona l purpos es onl y The pres enta ti on of the i nforma ti on i s wi thout contra ct or a ny type of gua ntee a s s ura nce The tra dema rks tha t a re us ed a re wi thout cons ent, a nd the publ i ca ti on of the tra dema rk i s wi thout permi s s i on or ba cki ng by the tra dema rk hol der Al l tra dema rks a nd bra nds wi thi n thi s book a re for cl a ri fyi ng purpos es onl y a nd a re owned by the owners thems el ves a nd a re not a ffi l i a te wi th thi s document CLAIM YOUR FREE GIFT NOW As a way of saying “thank you” for your purchase, we’re offering you a free special bonus that’s exclusive for our book readers SECRET “DELETED CHAPTER” BONUS It’s a secret chapter that was cut out from the book for various reasons (some were not appropriate, some were too powerful, too taboo, etc) – but yours free! Go to the link below before it expires! http://www.easysummaries.com/secretbonus Blockchain: Blockchain Technology 2018 - The Complete Guide To New Blockchain Revolution! TABLE OF CONTENTS Table of Contents Introduction Chapter What exactly is the blockchain? Chapter How the Blockchain Works Chapter Blockchain and Cryptocurrencies Chapter Benefits of The Blockchain Technology Chapter Blockchain as a Service Chapter Blockchain Predictions of What Will Happen in 2018 Chapter Conclusion This book is meant to serve as a guide to help you understand what blockchain is and how to leverage its benefits It’s in no way intended to be a professional manual for anything including trading If you need cryptocurrency trading advice, consult a professional financial analyst INTRODUCTION TO BLOCKCHAIN First, let me congratulate you for purchasing this book and “thank you” for choosing this copy While you may not understand most of the basics behind blockchain, I’m sure you know about Bitcoin and perhaps, Ethereum or Bitcoin Cash Well, all these digital currencies have one thing in common; they are written on the blockchain But that’s not all Blockchain has many other functions besides providing cryptocurrencies with a basis to operate on This technology is regarded as the next big thing after the internet itself and therefore, learning its ins and outs can help you leverage its advantages in the digital world Since much about blockchain can be confusing, this book has been written in most basic language, so even a tenth-grader can understand much of the concepts discussed We will kick off by defining what this tech is, how it operates, its applications, merits, demerits and how it’s likely to change as the years go by This book won’t touch on the complex algorithms on how this technology is curated or anything that makes you think you are back in college dealing with advanced algebra Once again, there is an overwhelming number of blockchain books out there, so thank you for making this one your number one choice Enjoy reading ~Mark Sloss CHAPTER WHAT EXACTLY IS THE BLOCKCHAIN? A blockchain is a decentralized ledger where everyone’s transaction history is stored This ledger automatically gets updated in regular time frames, is accepted by the community as a fact, and gets stored on every participant’s computer This way, no central party has to govern the network, as issues like double spending rarely exist in this ecosystem Instead of a central party dictating what is “real,” the community does so in a decentralized manner Blockchain technology thereby allows storage of any kind of information without needing a governing body This can be applied to any type of ownership, identification, knowledge, or…currency Blockchain and digital currency Blockchain technology provides the infrastructure for a digital currency to exist without a central bank Currency is one of the many different applications that can run on a blockchain, using the benefits of decentralization in the digital world Since this currency on a blockchain uses cryptography, it is called cryptocurrency What is a cryptocurrency? In a cryptocurrency, any rule or regulation is programmed into the cryptographic algorithm that governs the decentralized community using the currency The combination of cryptography and currencies gives crypto-currencies their name This basically means a currency that is backed by and made rare through cryptography Note that trust in a cryptocurrency network is derived from the underlying cryptography Since this is a new concept compared to thousands of years of using precious metals, it will take a bit of time until more and more people start to understand the true benefits of the new system Blockchain and Cryptocurrency nomenclature To clear up some confusion, let’s define a few terms: Blockchain: The immutable transaction history of a decentralized community Cryptocurrency: An application using blockchain technologies by which the transaction history and therefore the exact amount of currency everyone owns gets stored via a blockchain Bitcoin (capital B): This is used to name the idea and protocol of the first decentralized cryptocurrency on a blockchain Bitcoin(s)—lower case b: the currency itself WHAT WAS THE FIRST DECENTRALIZED CURRENCY? There have been several cultures around the world that refused to have a centralized monetary system While it is very hard to say which one was the largest or first, the concept of Rai stones on the island of Yap is quite fascinating and describes the concept of a blockchain and decentralized currency in an easy to understand way The Islanders did not own much gold, so in order to have some kind of currency that everyone could have access to if they wanted, they carved huge round stones out of limestone They would then be used as currency In theory, every islander would have been able to this, but it mostly became a specialized task done by few, while the others preferred to sell products or services to receive such stones in return The system was decentralized, as it was completely open for anyone to join, and everyone had the same rights Looking at blockchain and cryptocurrencies, you will recognize how similar this concept of the Rai stones actually is—with the difference that Rai stones are physical, and cryptocurrencies are digital That is why cryptocurrencies need a blockchain as an underlying technology Blockchain has dominated media channels for quite some time now, leading to many people becoming interested to know why this technology matters It’s expected that as 2018 draws toward its end, we will be able to know just how well blockchain fits into the nerves of the society CHAPTER HOW THE BLOCKCHAIN WORKS The blockchain operates through consensus This is an agreement from all the participants in a blockchain regarding the truth about certain data Cryptocurrencies operate around this method to avoid a single entity from having dominion over every decision Usually, when a transaction has been dispatched, miners will review it and validate or discard it in unison In traditional systems, a single authority like the government, banks and other agents are the ones to review everything and issue the green light The problem with such centralized systems is that they put too much power in a few individuals who can abuse it Consensus, if not configured properly, can open loopholes that can lead to system corruption For instance, since all you need for your transaction to be valid is other miners to confirm your transaction, why not create thousands of miners yourself? They, in turn could confirm that someone sent you millions of dollars This would be called a Sybil attack, and may need a good number of pages to describe it in full CONSENSUS ALGORITHMS In order to avoid all this chaos, legit cryptocurrencies have developed consensus mechanisms that govern the above-mentioned problems in a decentralized system: Conflict of opposing information—one miner saying one thing and another saying something else Possibility of creating fake miners who work in your interest and allow you to cheat Incentive mechanisms to motivate as many people in the system to participate in the consensus and not only participating as a user While there are many more consensus algorithms in the making and they might be labeled differently in different cryptocurrencies, these are the three most important ones: well A vast majority of all cryptocurrency transactions are currently speculative in nature, which means that investors are buying and holding them This, in turn, creates a bubble that has to eventually burst sooner or later The trick with the bubble is to get in as early as possible and keep an eye out for signs that it will burst so you can get while the getting is good BENEFITS TO TRADING IN BLOCKCHAIN CRYPTOCURRENCIES Global currency When it comes to standard currency, the number of things that can influence the price is naturally going to be fairly limited The opposite is true for cryptocurrencies, however, it is difficult to tell what will set investors off before it happens Any currency news anywhere has the potential to set prices shifting dramatically; in fact, several of Bitcoin’s most significant moves have come about due to the introduction of controls for capital in Greece and when China devalued the Yuan Market is always ready While the Forex market is traditionally thought of as the most robust market, as it is open 120 hours each week, the cryptocurrency market is open 168 hours each week, and trades are always happening regardless of what part of the world is currently active Currently, there are about 100 major cryptocurrency exchanges in the world who all offer various levels of trading, along with differing rates based on their level of service As such, it should not take more than a little research to find the one that is right for you This can also be seen as a negative, depending on your tolerance for risk, as these factors can be enough to generate large swings on a daily basis In fact, price shifts of more than percent are common on most days for the larger cryptocurrencies, and the smaller ones aren’t surprised if they see 15 percent movement or more High volatility The fact that cryptocurrencies are not regulated by any higher power, coupled with the fact that they are a new form of investment and the fact that any event anywhere can lead to essentially unexpected movement, all combine to create an extremely volatile market Swings of more than percent in a single day are not uncommon for several different types of cryptocurrency, and the smaller currencies are capable of swinging with even greater frequency and to larger degrees A pointer on the Ethereum Platform Of all the cryptocurrencies on the market today, the one that is the most dedicated to improving the quality of the blockchain experience as a whole is Ethereum While its cryptocurrency, ether, sees a fair amount of speculation, it is mainly used to pay for transactions with smart contracts and applications designed to run on the Ethereum platform It has already seen about half as many transactions as Bitcoin, despite only being around for a third of the time It is also more firmly focused on the future, with its improved interactions with smart contracts and its decentralized app platform, as well Perhaps more importantly, if you look at the transaction chart for Bitcoin, then you will see that it is nothing but peaks and valleys It’s true that things tend to move in an overall positive direction, but it can hardly be called steady growth On the contrary, the Ethereum chart shows a much more overall bullish outlook, even through the summer of 2017, when blockchain was at its current peak It is important to keep in mind that cryptocurrencies are always going to be social constructs, which means that Ethereum’s robust network effects make it easier for the network, and its value, to continue to grow steadily moving forward The final feather in ether’s cap is the fact that the Ethereum blockchain is all done on smart contract technology Smart contracts are simple programs that can be added to blocks and then activated once a specific set of circumstances occur While they are currently primarily being used for financial purposes, there is already interest in them for everything from monitoring patients in hospitals to providing notary services In fact, one of the stated goals of Ethereum is to simplify the way that traditional contracts work, thus reducing the costs of such services significantly The Ethereum platform can process a total of 25 transactions per second, though additional scalability is also possible This process can lead to additional orphaned blocks that are never processed correctly; however, this isn’t a common occurrence As of November 2017, a single ether is worth about $350 By January, it was above $900 CHAPTER BENEFITS OF THE BLOCKCHAIN TECHNOLOGY Blockchains create a network that includes all the participants and acts as a verification mechanism for both transactions and asset ownership A single copy of the transactions is stored in a shared, distributed, ledger that is replicated across the network, so each member has the exact same accurate copy of the transaction activity in near real-time The unique benefits that accrue from a Blockchain are: Trustless Blockchains run in a “trustless” ecosystem where the participants don’t have to know or trust each other to take part in transactions Provenance Provenance is the capturing of the complete history of an asset This history can contain quality assurance specifications or ownership history or anything else of value for a given asset Consensus Consensus is a way by which transactions are validated by the Blockchain (not by a trusted third party) There is a whole chapter of the book dedicated to this topic Immutability Blockchains are, for all practical purposes, unalterable once a block has been added to the main chain There is no Delete or Update command in the Blockchain sphere as exists with other databases TYPES OF BLOCKCHAINS There are two main types of Blockchains: Public (open) and private (closed) Let’s first take a look at the characteristics of a public Blockchain Most likely, you have heard of Bitcoin and maybe Ethereum Both of these and several others in the marketplace today operate using public Blockchains Public blockchains are permission-zero distributed ledgers That means that ANYONE can join the network and you don’t have to be asked nor you need permission to join the network Public Blockchains are anonymous so members don’t have to reveal who they are to participate Open blockchains also have anonymous validation which means that anyone can participate in the Consensus process that validates transactions This opens the door for potential bad guys to try and tamper with the data in a Blockchain This topic will be covered extensively later on As you’ve seen in advantages mentioned above, public blockchains are trustless systems Trust is not a prerequisite for doing business on the network You not have to know, or like, or trust the other party in a transaction on a public Blockchain And, these blockchains are where “Brave New World” apps are being developed In other words, applications on a public Blockchain are those that didn’t exist or couldn’t have existed before Blockchains but are now being developed - like cryptocurrencies Private Blockchains Now let’s contrast public Blockchains with private Blockchains There are several private Blockchains that are available on the marketplace HyperLedger, which has big backing by IBM, and Ripple which focuses on high transaction throughput in the financial markets are two of the most well-known private Blockchains The first distinctive quality of a private Blockchain is that, it is based on a permissioned private ledger Who can participate in the network and who can validate transactions is known and vetted in advance Participants must have a level of trust within the network and be invited to join the network Since private Blockchains usually have large corporations as participants, sensitive data will often be stored “off the chain” while consensus and validation information will be store inside the blockchain For example, the fact that two companies agreed on a contract can be validated inside of the Blockchain, while the actual terms of the contract might be stored “off chain” in a relational database Private Blockchains are the choice for “reconstructing existing world applications” where old applications get a facelift with Blockchain technology to gain the processing efficiencies that were discussed earlier CHAPTER BLOCKCHAIN AS A SERVICE Both Microsoft and IBM have recently released private Blockchain service technologies (within their clouds titled Azure and Bluemix, respectively) These private networks pose considerable issues about their experimental nature, as it is not yet clear how these attempts will be affected by the scale and operation of the exercise in relation to its infrastructure Nonetheless, the potential is already apparent Easier availability of the Blockchain experience: Both Microsoft and IBM will make the process of accessing Blockchain more simplified Flexible in scale: Unlike the Bitcoin Blockchain network, these networks will allow more control over the size of the network you are operating, so you can add or remove nodes with greater ease Accessible across the globe: Access to Blockchain technology will no longer be limited to specific parts of the world through the leveraging of the two cloud technologies Easier interoperation use of Blockchain tech: Currently, it is difficult to use Blockchain with other programs that are not directly linked to it and developed in conjunction with it To put it this way, Blockchain doesn’t just translate into working with Spotify As Blockchain is further developed into a service, the possibilities of simplifying and integrating Blockchain tech into other platforms will become more widely available Easier development opportunities: Operating a Blockchain network is difficult to manage right now, but it will be easier to launch and manage them in the future New models for creating programs: Blockchain is still a difficult industry to break into without advanced technical knowledge It is too complex right now to have a simple interface However, with the increasing effort to develop Blockchain services, there is an effort being paid to developing programming that will allow for easier ability to design applications for Blockchain With Blockchain being investigated as a service, not just a platform, the advancement of technologies is open to significantly more opportunity It paves way for future developments in the works Understanding how it will be implemented as a service reveals the key to understand the future applications that are being considered now, even though the technology is not yet far enough advanced to make these concepts into reality just yet THE MARKETS WHERE BLOCKCHAIN COULD PROVE USEFUL FINANCE INDUSTRY As we know, the financial industry has played the largest role so far in investing in Blockchain technology Players from the finance sector have already put almost $1 billion toward companies that are working to further develop Blockchain technology It is projected that $20 billion could be saved yearly with the successful implementation of the technology in the global banking arena In fact, many Blockchain startup companies are founded bankers NASDAQ, Visa, and JPMorgan are just a few of the big names involved in providing assets to further develop the technology What are they researching? With the funds they’ve invested, these companies will be able to explore how Blockchain technology can be commercialized to handle the trade of stocks, bonds, loans, derivatives and other assets At this time, those transactions are recorded and stored by central banks and other institutions This process is costly and takes a lot of time Blockchain technology can make these transactions happen quicker and with more security Both within companies and between them, programs for transactions are being piloted so that banks can securely make faster, safer exchanges These kinds of transactions differ from the ones practiced through the Bitcoin Blockchain because they are private rather than public, which means there may be an authority overseeing the transactions Already this year, successful tests have been conducted and Nasdaq successfully carried out a securities transaction using its own Blockchain exchange Tracking Down Black Market Goods Blockchain technology can be utilized to form a registry that would allow users to trace the ownership of an item to determine whether they are of illegal or false provenance Insurance companies are finding themselves drawn into cybersecurity issues, and one is already working with a Blockchain startup to begin tracking diamonds as they leave mines to trace their movements Here’s how it works: The information of defining attributes of the goods is recorded and ascribed to a serial number that has been assigned to the item The serial number can, in some cases, be inscribed directly on the item That information then enters the Blockchain database; it cannot be stolen or corrupted because it is replicated on every node and encrypted This kind of system would allow the provenance of each item to be certified by sellers and give buyers a way to find out about the items they are seeking to purchase This also gives the police and other authorities a resource to use when seeking items that have been stolen This would be an example of a private network, open only to those who have proven themselves reputable in the industry Blockchain technology will be expanded in the future to securely track other valuable markets, such as art or expensive technology Healthcare Industry The principles of privacy behind Blockchain technology are perfect for application to industries where the data being transmitted must be protected, such as the transaction of medical records The healthcare system has long lagged and been held back by inefficient practices that must be imposed to keep patient identities safe That’s why health care industries are showing interest in the potential of Blockchain For pharmaceutical companies, the draw lies in the potential to track and tag drugs to regulate the trade of goods to prevent illegal trade and counterfeiting Blockchain technologies allow new reimagining of what it means to have control of privacy There are projects underway that are investigating the potential for people to have the power to store their own personal data on a secure and private server This would empower them to have control over who accesses it The following scenario would then be possible: when a call for research is made, individuals would have the power to sell or allow access to their data for researchers to use Data is then utilized as an asset and something you own and can be compensated for rather than just giving it away for free Insurance Companies The possibility of Blockchain technology applied to insurance can build up new businesses but also has the potential to destroy other forms New types of policies could be invented; for example, with the 24-availability of Blockchain technology, you could get insurance on the weekends, even after company hours With real-time updates to the database, you could have the option of insurance over a mere period of hours This would mean making longer-term forms of accident insurance less popular, which could cut into profits Media Ventures The music industry is suffering at the hands of streaming services and illegal downloading What if there were a way to make music available online secure, yet convenient to access on the web? Blockchain has the potential to change the way the music business deals with royalty costs Everyone knows the music business is suffering from a crisis That’s why artist Imogen Heap made music history by releasing her single on the Blockchain music sharing platform Ujo, based on the peer to peer open-source entity Ethereum If major firms like Apple Music, Pandora, or Spotify were to release music using a Blockchain, they would be able to capitalize on collection of royalties in a way no platform has ever been able to guarantee its artist’s before Instead of having the music encoded on a file as with MP3s, a new type of file would be used MP3s can carry meta-data, but the amount is not significant and it can be easily removed and passed on further without the ability to trace it This new type of file would be one that plays music as well as wears the Blockchain data on intellectual property rights and requirements for payment Real Estate Market Blockchain can revolutionize the functioning of the real estate market by making contracts, deeds and titles more secure and trackable than ever before This is particularly useful for instances where this information is at a risk for loss Imagine the dangers posed in the face of the loss of a paper archive, for example, in a war-torn environment With an updated record distributed across multiple platforms, the risk of this loss is avoided and can be better maintained Manufacturing Industries Blockchain can play a huge hand in preserving and protecting the intellectual property of businesses, both small and large 3D Printing, as mentioned above, can be risky in terms of transferring data This applies to other goods as well Particularly for smaller companies, the task of protecting the IP of their products is high challenging when they are also trying to operate on a platform to sell their wares Using Blockchain, people who hold rights on their creations have a platform to store metadata on actual substances, thereby ensuring the safety of their wares Personal Data Management Blockchain has the potential to put people in control of their own personal data Consider platforms such as Facebook and Instagram Every time you interact with information through these platforms, you are creating data that is then controlled by those companies and sold off to other parties to design marketing targeting your tastes This is an example of companies having ownership off your own data, data that you have created With a decentralized platform like Blockchain, that information could be stored by you personally and selectively released at your discretion rather than available in the ownership of the companies This ties into the concept of Internet of Things, because with the implementation of identity-protecting Blockchain technology, you can have control over who has access to what aspects of your identity Combined with smart contracts, you will have opportunities to authorize and more effectively manage the collection of data on your identity A new era of privacy is ushered in with the development of Blockchain CHAPTER BLOCKCHAIN PREDICTIONS OF WHAT WILL HAPPEN IN 2018 More adoption by both people and institutions There is more value to the blockchain-enabled technology other than top-notch security For instance, individuals can transact or communicate via secure channels Transactions don’t go through intermediaries and hence simpler and faster than those run by centralized entities Colleges, universities, hospitals, and financial firms are a few of the institutions expected to leverage the pros of this technology But how will extreme volatility of cryptocurrencies be dealt with? Sure, that’s an important question that if answered could lead to many people adopting cryptocurrencies and its underlying blockchain technology UBIQUICOIN is one of the crypto companies with a two-coin system, where one is crafted in such a way that it’s stable and thus not impacted by traditional price swings Emergence of tech and B2B giants The first month of 2018 hasn’t been merciful to the cryptocurrencies as we witnessed prices dropping in massive scales Even Bitcoin wasn’t spared, either Despite these unfortunate circumstances, huge companies such as Amazon and Facebook are said to be interested in adopting the blockchain technology TraDove is a Francisco—based B2B company that raised millions in ICO pre-sales to help them move their services onto the blockchain for secure and faster transactions Cryptocurrencies will become the everyday payment method At the moment, WordPress, Expedia, Subway, and Shopify are few of the companies accepting payment in form of cryptocurrencies The number of companies accepting this medium is expected to grow Actually, any enterprise that won’t be accepting Bitcoin and other major cryptocurrencies will likely be frowned upon by customers There will be a surge in smart contract use The smart contract is a safe and secure form of payment in a trustless system Some of the companies leveraging the benefits of this technology include JoyToken (gaming platform) and meVu, a betting platform with an aim to make betting less expensive Towards the end of 2018, smart contracts will have taken over from signed paper contracts and other expensive escrow services we are using at the moment Blockchain will disrupt well-established industries We have companies that have dominated traditional markets for hundreds of years As the blockchain find its way into the mainstream use, it’s going to cause disruption and shake things up in the conventional industries For instance, ODEM is an education blockchain technology that aims to connect educators with leaners directly thereby cutting out intermediaries who make education costly CHAPTER CONCLUSION In short, blockchain is the technology that gives power back to the people If it gets widely accepted, we won’t have to part with much in fees or worry about not receiving a payment or worst, losing money through double-spending This technology is the solution to all the losses we’ve been incurring through centralized authorities Now, it’s important to point out that your knowledge of blockchain should not end here Read as more books and articles as possible so you can have a very clear understanding of it Once again, I’d like to thank you for purchasing this book Feel free to leave some good review CLAIM YOUR FREE GIFT NOW As a wa y of s a yi ng “tha nk you” for your purcha s e, we’re offeri ng you a free s peci a l bonus tha t’s exclusive for our book rea ders SECRET “DELETED CHAPTER” BONUS It’s a s ecret cha pter tha t wa s cut out from the book for va ri ous rea s ons (s ome were not a ppropri a te, s ome were too powerful , too ta boo, etc) – but yours free! Go to the link below before it expires! http://www.easysummaries.com/secretbonus FINAL SURPRISE BONUS Final words from the author… Hope you enjoyed this book as much as we enjoyed bringing it to you! I always like to over-deliver, so I’d like to give you one final bonus Do me a favor, if you enjoyed this book, please leave a review It will help get the word out so more readers can enjoy this book! If you do, I’ll send you one of my most cherished collection – Free: Secret “Deleted Chapter” Bonus of Blockchain: Blockchain Technology 2018 - The Complete Guide To New Blockchain Revolution! Here’s how to claim your free report: Leave a review (longer the better but I’d be grateful for whatever length) Send a screenshot of the review here: easysummaries24@gmail.com Receive your bonus within 24-48 hours! Receive your free bonus – Secret “Deleted Chapter” Bonus of Blockchain: Blockchain Technology 2018 - The Complete Guide To New Blockchain Revolution! – immediately! ... http://www.easysummaries.com/secretbonus Blockchain: Blockchain Technology 2018 - The Complete Guide To New Blockchain Revolution! TABLE OF CONTENTS Table of Contents Introduction Chapter What exactly is the blockchain? ... assets to further develop the technology What are they researching? With the funds they’ve invested, these companies will be able to explore how Blockchain technology can be commercialized to handle... It’s expected that as 2018 draws toward its end, we will be able to know just how well blockchain fits into the nerves of the society CHAPTER HOW THE BLOCKCHAIN WORKS The blockchain operates through