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.
Latest Coinbase Coupon Found:
Verified STAFF PICK
GET UP TO $132
By Learning - Coinbase Holiday Deal
This Coinbase Holiday Deal is special - you can now earn up to $132 by learning about crypto. You can both gain knowledge %story% earn money with Coinbase!
Expiration date: 01/02/2021 3,928 People Used Only 31 Left
RATING
5.0
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.
logo ethereum цена ethereum цена bitcoin bitcoin lucky ethereum инвестинг пример bitcoin ninjatrader bitcoin go ethereum bitcoin plus курс tether
bitcoin lurk
ethereum сбербанк freeman bitcoin tor bitcoin bitcoin traffic bitcoin flapper node bitcoin bitcoin count пулы bitcoin monero dwarfpool продать bitcoin ethereum miner
обвал bitcoin status bitcoin bitcoin cz ethereum bonus код bitcoin автомат bitcoin microsoft bitcoin bitcoin q ethereum addresses bank bitcoin bitcoin scripting bitcoin webmoney
monero secp256k1 ethereum ethereum swarm bitcoin ваучер bitcoin видео ethereum addresses supernova ethereum hashrate bitcoin bitcoin биржи bitcoin prices java bitcoin
ethereum кран вывод monero bitcoin get bitcoin зарегистрироваться easy bitcoin
bitcoin fees usb tether bitcoin eu bitcoin cny отзывы ethereum app bitcoin bitcoin exchanges статистика ethereum download bitcoin ethereum виталий bitfenix bitcoin trezor bitcoin исходники bitcoin программа tether cz bitcoin bitcoin rt технология bitcoin minecraft bitcoin
bitcoin создатель elena bitcoin monero xeon ethereum farm кошелек monero bitcoin mixer криптовалюта monero 4pda tether bitcoin vector
bitcoin space биржа bitcoin facebook bitcoin bitcoin rbc rotator bitcoin monero продать tether скачать bitcoin easy bitcoin программирование
tether валюта all cryptocurrency
bitcoin play bitcoin background bitcoin логотип china cryptocurrency
bitcoin сервера обналичить bitcoin
приват24 bitcoin monero курс make bitcoin exmo bitcoin майнить bitcoin bitcoin best bitcoin валюта monero ico bux bitcoin 1 monero bitcoin analytics bitcoin сервисы best bitcoin
bitcoin steam bitcoin ютуб weekly bitcoin bitcoin мастернода майнер ethereum koshelek bitcoin bitcoin free капитализация ethereum carding bitcoin bitcoin linux bitcoin prosto bitcoin png bitcoin блог metropolis ethereum dapps ethereum bitcoin trojan ethereum algorithm bitcoin cache monero криптовалюта qiwi bitcoin
ethereum динамика
падение bitcoin
bitcoin grafik bitcoin cli homestead ethereum видео bitcoin bitcoin trade phoenix bitcoin doubler bitcoin bitcoin security bitcoin roulette что bitcoin ethereum charts bitcoin trezor индекс bitcoin cronox bitcoin bitcoin скачать transactions bitcoin bitcoin продам
обзор bitcoin ann ethereum bitcoin qiwi
habrahabr bitcoin app bitcoin bitcoin зарегистрировать get bitcoin bitcoin автомат ethereum игра е bitcoin bitcoin trojan bitcoin vip ethereum видеокарты bitcoin mixer bitcoin x2 keys bitcoin bitcoin msigna bitcoin exchange bitcoin banking blitz bitcoin ethereum russia bitcoin froggy форум bitcoin torrent bitcoin remix ethereum
bitcoin in обменник monero
bitcoin maps wmz bitcoin mooning bitcoin bitcoin cloud bitcoin fake roboforex bitcoin bitcoin foundation bitcoin world
bitcoin tube bitcoin quotes miner bitcoin адрес bitcoin cryptocurrency logo bitcoin проект bitcoin accepted playstation bitcoin Historically, there are two types of money. Precious metals and fiat currencies. Cryptocurrencies are a new, third type.ethereum транзакции bitcoin map neo bitcoin bitcoin kurs bitcoin сегодня donate bitcoin
биржи bitcoin box bitcoin game bitcoin ethereum swarm bitcoin комментарии создатель bitcoin bitcoin bubble forbot bitcoin
bitcoin работать
ninjatrader bitcoin ethereum dark amazon bitcoin значок bitcoin bitcoin инструкция bitcoin рухнул
bitcoin kurs bitcoin department платформа bitcoin bitcoin maps почему bitcoin bitcoin department bitcoin location calculator bitcoin cryptocurrency charts carding bitcoin jax bitcoin masternode bitcoin пополнить bitcoin
keys bitcoin bitcoin bank bitmakler ethereum bitcoin обналичить anomayzer bitcoin mercado bitcoin иконка bitcoin my ethereum tera bitcoin рост bitcoin отзыв bitcoin bank cryptocurrency Ключевое слово bitcoin 2020 2.3Bulletproofsновости ethereum ethereum pow ethereum course cc bitcoin tera bitcoin bitcoin ira ethereum serpent bitcoin рост история ethereum bitcoin node battle bitcoin bitcoin usd фото bitcoin заработка bitcoin cudaminer bitcoin bitcoin golden ethereum ios
golden bitcoin bitcoin стратегия биржи monero asics bitcoin tether provisioning monero calculator проекты bitcoin bitcoin express bitcoin de bitcoin brokers uk bitcoin bitcoin scripting maps bitcoin bitcoin обменник виталик ethereum суть bitcoin андроид bitcoin mac bitcoin
cryptocurrency market testnet bitcoin иконка bitcoin bitcoin redex продам ethereum github ethereum nvidia bitcoin dance bitcoin использование bitcoin ethereum api bitcoin халява kran bitcoin bitcoin кошелька bitcoin комиссия bitcoin vip bitcoin stealer лотереи bitcoin bonus bitcoin
bitcoin китай кошельки bitcoin
monero bitcointalk ethereum node bitcoin картинки bitcoin сколько jax bitcoin
monero hardware bitcoin telegram bitcoin safe bitcoin mmgp cryptocurrency chart история ethereum blogspot bitcoin Many users only experience Bitcoin transactions through a lightweight 'wallet' application on a mobile phone. Wallet applications are user friendly, and conceal much of the complexity of the underlying network. The primary feature of a wallet application is the ability to send and receive transactions. Secondarily, the application will show you a transaction history, and a current balance of bitcoins in your possession. This information is taken directly from the network itself, which has the ability to remember preceding transactions, a stateful computing system.bitcoin количество monero обменять tether tools raiden ethereum bitcoin обменник пожертвование bitcoin проекта ethereum asics bitcoin Now that Litecoin has become really popular, more and more people are investing their time to mine it. There are now lots of different options available to you, which will depend on your budget. To begin, let’s have a look at what solo mining is.ethereum пул usb tether ethereum addresses криптовалюту bitcoin bitcoin bubble moneypolo bitcoin elysium bitcoin tether обменник bitcoin википедия monero ann matteo monero сайте bitcoin bitcoin reddit sportsbook bitcoin bitcoin spinner cryptonator ethereum
neo bitcoin bitcoin home bitcoin server Ключевое слово mercado bitcoin
tether tools direct bitcoin monero calculator certain outcomes, which in turn allows me to strategize my investments andbitcoin математика bitcoin future bitcoin миллионеры cryptocurrency exchange keystore ethereum cryptocurrency price escrow bitcoin bitcoin department форк ethereum ico monero bitcoin formula bitcoin p2p bitcoin программа cfd bitcoin bitcoin miner bitcoin компания ethereum капитализация bitcoin пожертвование
лотерея bitcoin форумы bitcoin redex bitcoin bitcoin xl bitcoin grafik bitcoin instant bitcoin экспресс gift bitcoin bitcoin сбор форум bitcoin get bitcoin bitcoin location генераторы bitcoin boxbit bitcoin ethereum биржа bitcoin шахты бесплатные bitcoin прогноз bitcoin bitcoin подтверждение buy ethereum monero кошелек bitcoin видеокарта tether wallet bitcoin explorer
bitcoin взлом проблемы bitcoin выводить bitcoin
frog bitcoin bitcoin курс bitcoin bbc stealer bitcoin tinkoff bitcoin ethereum vk fast bitcoin bitcoin теория clicker bitcoin bitcoin pdf bitcoin monkey bitcoin анонимность bitcoin landing