Mode of operation and participation

As I explained previously, with a traditional database the data is stored at a central location, and only a single entity, usually the owner, keeps a copy of the database, grants access to other users, and controls what data is contributed. With the arrival of blockchain and other DLTs, this approach to data storage and operations has changed radically. Instead, blockchain favors a distributed data storage model where each participating entity holds a copy of the database. All participating entities take part in a peer-to-peer network of nodes that distribute the data among themselves. Because of the difficulty of keeping all nodes in sync, the nodes need to be sure that they agree on the correctness of the ledger; that is, the common truth. Arriving at this common truth is called consensus, which is described in a later section. Let's...