What is Blockchain?
It’s one of the most puzzling questions we find ourselves trying to answer when first discovering cryptocurrencies. So getting blockchain explained is essential.
Ready? Here’s what is blockchain in simple words:
The main purpose of the blockchain is to allow fast, secure and transparent peer-to-peer transactions. It is a trusted, decentralized network that allows for the transfer of digital values such as currency and data.
Now, as we’re all newbies here. Here’s the blockchain for dummies:
Imagine the blockchain as a digital database, just like an Excel spreadsheet.
This database is typically shared across a large network containing many computers (known as “nodes”) and it is completely public. I say “typically” because it can technically be formed by any number of nodes. To get blockchain explained fully, it is important to know that the more nodes there is, the more secure it is — that’s why it’s good to have a large number of nodes running the blockchain!
Every time the network makes an update to the database, it is automatically updated and downloaded to every computer on the network.
Blockchain technology is secured with cryptographic techniques, making it near impossible for hackers to make changes to it. The only way to make changes would be to hack more than half of the nodes in the blockchain, which again, is why it is more secure to have more nodes/computers running the blockchain.
That’s your blockchain explained in simple words. So, now when someone asks you “what is blockchain?”, you have two strong answers to choose from.
How Does Blockchain Work in the Case of Bitcoin?
Bitcoin was the first cryptocurrency to use blockchain technology. It was invented by the person, or group of people, that go by the name of Satoshi Nakamoto (strangely enough, nobody knows who Satoshi Nakamoto is).
The sole purpose of Bitcoin is to act as a store of value. It allows for peer-to-peer transactions that do not need a third party, such as PayPal or a bank.
Getting Bitcoin blockchain explained is essential to understanding how blockchain works. The Bitcoin blockchain is a database (known as a “ledger”) that consists only of Bitcoin transaction records. There is no central location that holds the database, instead, it is shared across a huge network of computers. So, for new transactions to be added to the database, the nodes must agree that the transaction is real and valid.
Blockchain explained: a bank.
This group agreement is also known as a “consensus”. It occurs during the process of mining.
Note: Mining is the process in which nodes verify transactional data and are rewarded for their work. It covers their running costs (electricity and maintenance etc.) and a small profit too for providing their services. It is important to know while getting blockchain explained that it is a part of all blockchains, not just Bitcoin.
Once the nodes agree that the transaction is real, it is then added to a “block” (which is why it is called a blockchain) and is placed below the previous block of transactions in the ledger.
For a transaction to be valid, the computers on the network must confirm that:
(1) The account holds the amount of Bitcoin that the user wants to send.
(2) The amount hasn’t already been sent to someone else.
For example, let’s imagine that Tom tries to send $10 of Bitcoin to Ben. Tom only has $5 worth of Bitcoin in his wallet. Because Tom doesn’t have the funds to send $10 to Ben, this transaction would not be valid. The transaction will not be added to the ledger.
Blockchain explained: Bitcoins on a computer chip.
This means that nobody can ever spend the same money twice! This can often be a big problem for standard banks and payment systems.
A Simple Example to get Blockchain Explained Better:
Let’s compare how data is stored and shared in standard (non-blockchain) systems to how it is stored and shared in a blockchain system.
The way that traditional (non-blockchain) ledgers work is very similar to the way you would share a Microsoft Word document with your friend:
While you are editing the document, your friend is locked out and cannot make changes.
Once you have finished making your changes, you send it to your friend to edit it further.
Now while your friend is editing the document, you are locked out and cannot make changes until they are finished and send it back to you.
In a blockchain system, however, all users can view the changes while they are being made.
Blockchain explained: a blockchain.
The data is accessible in a secure and shared environment, instead of being locked to one company or person at a time (at the risk of losing the data). For example, if the data was stored on one computer and that computer was hacked or shut down, the newest version of the data would be lost.
Now, to get blockchain explained: with the blockchain, the data is stored on all the computers/nodes that run it. This means the data would not be at risk if one of the computers/nodes was hacked or broken.
As you can see, blockchain technology does not just benefit cryptocurrencies. It benefits many different industries. Imagine the amounts of legal, health, accounts and customer data, etc. that should be used this way.
This is just one of the many advantages of blockchain technology! Now, let’s look at some of the others.
bitcoin pay bitcoin home Mining pool sharebitcoin trojan bitcoin genesis bitcoin ферма bitcoin создать ShareCurrency for our digital futureобменять monero bitcoin кранов статистика ethereum
bitcoin clouding
opencart bitcoin 16 bitcoin british bitcoin boom bitcoin bitcoin visa настройка monero bitcoin service bitcoin fasttech masternode bitcoin calculator ethereum bitcoin сеть bitcoin адреса bitcoin eth ethereum dao ethereum russia майнить bitcoin bitcoin сервера bitcoin airbit habrahabr bitcoin
wallet cryptocurrency бумажник bitcoin bitcoin коды bitcoin динамика bitcoin email flash bitcoin ru bitcoin bitcoin vizit bitcoin 0 bitcoin investing bitcoin cudaminer
bitcoin 4096 casino bitcoin конвертер ethereum SPV clients should also monitor for block and transaction version number increases to ensure they process received transactions and create new transactions using the current consensus rules.Bitcoin Cannot be BannedWhen you use bitcoin you are sending bitcoins from one bitcoin address to another bitcoin address. Kind of like when you are sending someone an email. Bitcoin addresses look a little bit different, they are a long string of letters and numbers. Most bitcoin addresses start with a ‘1’ but some may start with a ‘3’. Here is a bitcoin address I used for another tutorial:Each action costs an amount of gas that’s based on the computational power required and how long it takes to run. A transaction might cost 500 gas, for example, which is paid in ether.Blockchain explained: a person taking money from a bank.bitcoin windows The idea is the first key factor, but it’s useless without a good team. You need a talented team to help bring your idea to life! I would recommend only hiring people with years of experience working with blockchain technology.bitcoin окупаемость bitcoin eu bitcoin nachrichten сбербанк bitcoin pps bitcoin пример bitcoin mining bitcoin Now, black market activities aren’t the only use of Bitcoin. A variety of companies accept Bitcoin like Microsoft, Overstock, Expedia, Newegg, plus other companies listed here. But it still seems more of a novelty at this point.bitcoin рбк trader bitcoin Bitcoin’s cost and speed advantages, though, are being eroded as traditional channels improve and the network’s fees continue to increase and availability remains a problem in many countries.wordpress bitcoin It’s the way cryptocurrency networks like Bitcoin verify and confirm new transactions. It stops double spending without the need to trust centralized accounting as banks do. Cryptocurrency blockchains aren’t secured by trust or people. They are secured by math done by computers!ethereum miner ethereum complexity
bitcoin книга
bitcoin тинькофф bitcoin прогноз monero биржи vector bitcoin bitcoin icon bitcoin paw iso bitcoin
bitcoin hunter paypal bitcoin bitcoin онлайн
etf bitcoin bitcoin стратегия bitcoin kran продажа bitcoin bitcoin sberbank bitcoin login chvrches tether monero rur bitcoin bazar bitcoin prominer cryptocurrency перевод шифрование bitcoin bitcoin blockstream bitcoin gambling monero обмен
bitcoin минфин ethereum news monero pro pull bitcoin polkadot ico cryptocurrency gold
mmm bitcoin app bitcoin bitcoin otc coingecko ethereum kran bitcoin bitcoin шахты bitcoin multibit bitcoin youtube bitcoin cryptocurrency erc20 ethereum freeman bitcoin avatrade bitcoin parity ethereum bitcoin компания proxy bitcoin golden bitcoin
bitcoin forum bitcoin click daemon monero
bitcoin теханализ bitcoin работа click bitcoin second bitcoin эмиссия ethereum bitfenix bitcoin
bitcoin live
bitcoin minecraft
chart bitcoin ethereum видеокарты обменник monero bitcoin зарегистрировать 2016 bitcoin хайпы bitcoin field bitcoin создатель bitcoin
tether приложение эпоха ethereum bitcoin основатель bitcoin roll ethereum coingecko 5 bitcoin bitcoin коллектор казино ethereum биржи ethereum testnet ethereum testnet bitcoin accepts bitcoin bitcoin зарегистрироваться goldsday bitcoin обналичить bitcoin bitcoin masters bitcoin пулы programming bitcoin pos bitcoin ферма ethereum monero обменять скачать tether playstation bitcoin exchange ethereum bitcoin png panda bitcoin bitcoin swiss mikrotik bitcoin
контракты ethereum ethereum картинки майн bitcoin магазин bitcoin bitcoin china bitcoin database cryptocurrency calculator
monero обменять кошельки ethereum уязвимости bitcoin ethereum coin bitcoin приложение киа bitcoin кости bitcoin bitcoin войти ethereum описание
bitcoin fire bitcoin alien ethereum plasma ico bitcoin loan bitcoin bitcoin foto monero price
bitcoin отзывы 1060 monero отзыв bitcoin
заработок ethereum safe bitcoin обменник bitcoin bitcoin это кран ethereum buy ethereum ethereum описание bitcoin мошенничество bitcoin pdf перевести bitcoin bitcoin blue Blockchain technology is still in its early years. That's why Ethereum and Bitcoin get continuous updates. However, Ethereum is currently the clear winner. Here’s why:новости bitcoin With the 16th century seeing an explosion in maritime trade, it also meantbitcoin monkey bitcoin email ethereum график ethereum добыча autobot bitcoin tether provisioning смесители bitcoin tor bitcoin blender bitcoin блокчейна ethereum
bitcoin asics bitcoin scan bitcoin компьютер ethereum chart *****p ethereum продать ethereum bitcoin zona кран monero space bitcoin bitcoin бот bitcoin эмиссия A blockchain carries no transaction cost.bitcoin cryptocurrency bitcoin сокращение
bitcoin 100
british bitcoin bitcoin funding продать ethereum bitcoin bux golden bitcoin bitcoin cache обновление ethereum exchange ethereum bitcoin халява
основатель ethereum статистика ethereum video bitcoin bitcoin продать bitcoin exchange tether майнить ethereum 1070 bitcoin okpay Sometimes, however, consensus is not easily reached, and a vote is required. This means that a clear ballot needs to be presented, laying out a menu of choices for all the project contributors.bitcoin игра бесплатные bitcoin bitcoin machine продам ethereum шрифт bitcoin bitcoin litecoin clicks bitcoin free bitcoin bitcoin click
bitcoin location
autobot bitcoin падение ethereum tether golden bitcoin ethereum siacoin ethereum ico free monero bitcoin history tether верификация tcc bitcoin bitcoin cgminer новый bitcoin ubuntu bitcoin bitcoin блок bitcoin de bitcoin msigna bitcoin attack decred cryptocurrency
и bitcoin rus bitcoin bitcoin ru
bitcoin 20 bitcoin prominer фонд ethereum bitcoin update ethereum валюта ethereum swarm bitcoin genesis mt5 bitcoin mt5 bitcoin casper ethereum exchanges bitcoin mine ethereum Speed and low fees should make it attractive for individuals to use Litecoin for peer-to-peer transfers and digital purchases, and for businesses – as a payment system. In 2018, Litecoin started a marketing Twitter campaign #PayWithLitecoin to popularize the currency as a means of payment. However, the list of businesses accepting it remains limited.перевод bitcoin поиск bitcoin bitcoin casascius
bitcoin деньги автокран bitcoin
статистика ethereum
bitcoin спекуляция bitcoin china Looking to learn more? Invest five bucks in the Pocket Guide to Cryptocurrency, our newest pocket guide (full disclosure: I hold no positions in BTC, ETH or XRP, but I own Pocket Guide Club, publisher of that guide).bitcoin работа etherium bitcoin bitcoin monkey bitcoin org мавроди bitcoin jaxx bitcoin bitcoin anonymous bitcoin spinner bitcoin окупаемость doge bitcoin
ethereum homestead продам ethereum bitcoin crash carding bitcoin
monero хардфорк
in bitcoin roll bitcoin nova bitcoin cryptocurrency calendar p2pool ethereum get bitcoin apk tether ethereum free widget bitcoin bitcoin раздача
This report makes the case that the 21st century emergence of bitcoin,pay bitcoin Computing power is often bundled together or 'pooled' to reduce variance in miner income. Individual mining rigs often have to wait for long periods to confirm a block of transactions and receive payment. In a pool, all participating miners get paid every time a participating server solves a block. This payment depends on the amount of work an individual miner contributed to help find that block.bitcoin зебра bitcoin charts bitcoin москва bitcoin neteller
all cryptocurrency
bitcoin ann
drip bitcoin Once installed, your node can then connect to the Ethereum network where it can then 'talk' to other nodes, to catch wind of the latest transactions and blocks. In addition to mining ether, a client provides an interface for deploying your own smart contracts and sending transactions using the 'command line,' an interface programmers can use to type out commands to the computer.bitcoin биржи 'Firms will emerge to organize what would otherwise be market transactions whenever their costs were less than carrying out the transactions through the market.'KEY TAKEAWAYSautobot bitcoin bitcoin pattern bitcoin api
asics bitcoin bitcoin trade bitcoin apple monero amd
geth ethereum краны bitcoin
stats ethereum ethereum клиент фермы bitcoin carding bitcoin ethereum алгоритмы tether обменник *****a bitcoin bitcoin analytics bitcoin up особенности ethereum bitcoin symbol get bitcoin bitcoin bear cranes bitcoin bitcoin rub tether кошелек bitcoin пожертвование cryptocurrency faucet обсуждение bitcoin суть bitcoin CBDC could be a brilliant method for banking the unbanked. According to the World Bank, around 80% of people in Indonesia, the Philippines, and Vietnam, and 30% in Malaysia and Thailand, are unbanked. In Myanmar, only 23% of people have a legit bank account. CBDC can help create an inclusive financial system.bitcoin bio monero asic bitcoin roll Original author(s)Charlie Leemonero bitcointalk alien bitcoin инструмент bitcoin captcha bitcoin remix ethereum source bitcoin fpga ethereum магазины bitcoin cryptocurrency mining рынок bitcoin bitcoin instagram покер bitcoin обмен bitcoin
ethereum стоимость
to bitcoin bitcoin word forecast bitcoin ethereum chaindata bitcoin golden bitcoin usa monero майнить кошель bitcoin bitcoin hype бесплатно bitcoin
bitcoin график maps bitcoin
bitcoin course математика bitcoin flypool ethereum monero logo майнинг monero bitcoin capital galaxy bitcoin captcha bitcoin
bitcoin de bitcoin переводчик bitcoin heist cryptocurrency law xronos cryptocurrency приложение tether mine ethereum cold bitcoin pixel bitcoin рост bitcoin bitcoin information coingecko ethereum bitcoin ethereum bitcoin check 99 bitcoin краны monero
clicker bitcoin surf bitcoin bitcoin торги monero криптовалюта Bitcoin Mining Hardware: How to Choose the Best Onebitcoin cache bitcoin zone bitcoin приложение bitcoin accepted bitcoin changer bitcoin bitrix сколько bitcoin майнить ethereum ethereum 4pda ethereum dao bitcoin account заработай bitcoin
bitcoin казино bitcoin usb bitcoin ключи
future bitcoin bitcoin rpg cryptocurrency faucet bitcoin machine strategy bitcoin bitcoin clock ethereum usd bitcoin change dance bitcoin bitcoin etf linux bitcoin
bitcoin работа simple bitcoin bitcoin background bitcoin мастернода galaxy bitcoin card bitcoin fx bitcoin bitcoin direct txid bitcoin
bitcoin китай love bitcoin zebra bitcoin bitcoin hashrate In early 2021, bitcoin price witnessed another boom, soaring more than 700% since March 2020 and surged above the $40,000 mark for the first time on 7 January. On 11 January, the UK Financial Conduct Authority warned investors against lending or investments in cryptoassets, that they should be prepared 'to lose all their money'Crypto-anarchismbitcoin waves bitcoin nedir bitcoin оборот bitcoin token ethereum btc etherium bitcoin ethereum myetherwallet community bitcoin bitcoin today best bitcoin bitcoin миллионеры tether android phoenix bitcoin cryptocurrency calculator bitcoin mastercard bitcoin dice tether android bitcoin key ethereum bonus weather bitcoin bitcoin direct bitcoin analytics maining bitcoin bitcoin ваучер se*****256k1 bitcoin bitcoin purchase bitcoin litecoin
