>The blockchain works by having multiple people host a node which contains ALL the data.
Right, essentially blockchain is a really messy way to solve the trust problem. But it does work, amazingly there is a real economy there. Growing, by number of users, each year, for almost ten years. By making the ledger public but with pseudonymous addresses it allows for a certain degree of privacy.
>So everyone who runs a node has to host the ALL the data.
No, they don't have to, but generally yes, they choose to. You can prune the data after verifying it in some implementations. But even then you have to keep a copy of the current unspent transaction data so you verify any new spends (which I think is over 2GB). That method isn't perfect, as when you need to rebuild the database for whatever reason you will have to re-download the entire thing. You don't need to host a node, if you give your trust away to a third party to do it for you.
>Why is this seen like it could have any use other than hosting shitcoins?
Because, in the real world, it already does have other uses. Not proven in the long run, but still as first attempts. Blockchain is here to stay. Even with all its many faults the problems like scaling and privacy are being worked on by a lot of dumb monkeys and eventually they tend to get a few things working.
There are a ton of scams. Just like there are a ton of scams on the net in general. Don't be an idiot. Don't invest in anything ever (everything is a gamble in life), just learn and research. Or take risks if you want to have a good chance of losing money.
There are also a ton of shitcoins, but who cares? Blockchain, even with all its flaws opened up a lot of potential. Economic potential to be sure, but also a lot of scam potential for gullible fools.
There are some solutions there involve replacing the blockchain entirely with another trustless technological solution. Some of which promise to combine all transactional data and unspent coin data into a tiny amount of data, like a single hash. In other words thPost too long. Click here to view the full text.