EDIT: Guess I asked hard questions
Very basic, I know, and I appreciate the answer is probably out there, but I might not be asking the right questions to the google-machine.
So my understanding is this...
In the beginning (TM), we had tally-sticks for transactions, which sucked because wood+termites=debt.
Then we had double-entry book-keeping, which is better, but prone to abuse and mistakes.
Now we have blockchain, whereby the ledger is visible, and miners validate it by in effect eliminating mistakes, and only putting the "correct" transaction into the chain.
What I can't quite grasp is how the altcoins work. I kinda get that Bitcoin itself was a proof of concept, but let's say that someone floats an ICO for "ArseCoin", where all arses, everywhere, will be validated through the blockchain that they establish.
Does this mean that all arse-owners need to buy in? And that if they don't, they are at risk of being classified as arse-less?
Or to be a bit less facetious about it...
Ripple. So this is apparently revolutionising the banking system. I picked this purely as an example, as it's the one I am closest to understanding (I think!), and it's known. Could be anything. Citation: ArseCoin.
Am I correct in understanding that the concept and the miners who bought in created a blockchain and support structure for the bank system to use, and that now the banks need to adopt this up-and-running "thing" to maintain the value of the unit?
What happens if they don't?
Who's selling it to the banks?
What's stopping the banks hiring some hotshot who gets this stuff and making their own?
And most importantly (in my head!)...
How does a bank, for example, take a "thing" that someone says is awesome ("Blockchain man, woo!"), and incorporate this into existing systems and procedures? Wouldn't this be a total rewrite of their internal accounting? Wouldn't this be a hard sell, in that some institutions are still using the same practices they used when they were swapping slaves for spice?
I have a mental gap, and it bothers me greatly. It's one of the crucial links I need to decide how to invest.
Discuss!