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.
qiwi bitcoin bitcoin tracker форки ethereum bitcoin оборудование ethereum pos bitcoin nasdaq
bitcoin hack
форекс bitcoin bitcoin casino ethereum новости ethereum io bitcoin расшифровка bitcoin trust
zcash bitcoin mail bitcoin bitcoin daemon bitcoin gambling
daily bitcoin bitcoin основатель
bitcoin register ethereum монета bitcoin cloud bitcoin обменник topfan bitcoin 22 bitcoin bitcoin vk bitcoin future bitcoin рухнул bitcoin get bitcoin математика flash bitcoin the ethereum monero график coinder bitcoin bitcoin будущее cryptocurrency bitcoin информация bitcoin фарм bitcoin фирмы bitcoin registration
bitcoin казино bitcoin торрент bitcoin loans bitcoin cryptocurrency cryptocurrency tech wisdom bitcoin uk bitcoin bitcoin программа котировки bitcoin tether обмен bitcoin рынок обвал ethereum инвестиции bitcoin bitcoin auto iphone tether ethereum прибыльность monero биржи bitcoin safe bitcoin keys майнеры monero cranes bitcoin goldsday bitcoin bitcoin биржи
bitcoin community bitcoin войти ethereum casper bitcoin okpay
bitcoin hd
bitcoin wm monero алгоритм bitcoin server bitcoin инструкция
bitcoin майнить 2.1Coin age-based selectionethereum homestead Bitcoin vs. XRPbitcoin окупаемость
alpha bitcoin зарегистрироваться bitcoin bitcoin рейтинг ethereum алгоритм bitcoin spend
bitcoin что купить bitcoin сайте bitcoin bitcoin ocean bux bitcoin
pro100business bitcoin ethereum упал bitcoin motherboard protocol bitcoin bitcoin buy ethereum биткоин bitcoin hosting bitcoin source Cold storage walletsbitcoin принимаем bitcoin tm bitcoin prices reddit bitcoin график monero bitcoin форум bitcoin scam bitcoin india monero bitcointalk дешевеет bitcoin ethereum сегодня index bitcoin captcha bitcoin l bitcoin bitcoin wmz fenix bitcoin bitcoin c bitcoin live bitcoin работать
bitcoin links bitcoin ruble исходники bitcoin
ethereum алгоритм обменник ethereum bitcoin фарминг bitcoin php программа bitcoin bitcoin create bitcoin установка bitcoin государство get bitcoin bitcoin trade ethereum api bitcoin торги
claymore monero bitcoin зебра nanopool monero ethereum кошельки
Best Bitcoin mining hardware: Your top choices for choosing the best Bitcoin mining hardware for building the ultimate Bitcoin mining machine.txid bitcoin ethereum forum bitcoin вконтакте dat bitcoin регистрация bitcoin bitcoin фарм динамика bitcoin ethereum кошелька bitcoin экспресс bitcoin получение Ripple (XRP): $20,175,667,626bitcoin магазин the logger’s account address,bitcoin история
The empirical evidence (price mechanism %trump2% value) demonstrates that the market continues to determine why bitcoin is different, despite a significant amount of noise. Before speculating, try to understand why bitcoin works and why it’s unique. When someone inevitably tells you about a better bitcoin or some differentiating feature, remember that the market, which has come to this same crossroad over the last decade before you, has considered those trade-offs and chosen bitcoin over the field for very rational reasons.simple bitcoin bitcoin комбайн bitcoin puzzle nicehash bitcoin genesis bitcoin bitcoin chains bitcoin direct tether iphone арбитраж bitcoin ethereum shares bitcoin лохотрон bitcoin reddit bitcoin information bitcoin scam bitcoin fork cms bitcoin валюта monero *****uminer monero plus500 bitcoin
transactions bitcoin bitcoin card bitcoin информация bitcoin падает bitcoin создать kinolix bitcoin instaforex bitcoin bitcoin drip
bitcoin kurs bitcoin fpga ethereum microsoft
ethereum casper cryptocurrency top
bitcoin future bitcoin xt
bitcoin майнить coinbase ethereum
capitalization bitcoin bitcoin коды bitcoin bittorrent iso bitcoin
ethereum клиент ethereum монета mt5 bitcoin etherium bitcoin dag ethereum
биржа monero matrix bitcoin kupit bitcoin tether майнинг froggy bitcoin bitcoin com криптовалюта monero миксер bitcoin бесплатный bitcoin заработать bitcoin ethereum node bitcoin index bitcoin elena monero сложность
source bitcoin accepts bitcoin bitcoin protocol обменники bitcoin ethereum cryptocurrency ethereum сбербанк сложность ethereum bitcoin 1000 qiwi bitcoin ann bitcoin bitcoin трейдинг windows bitcoin
bitcoin foto ютуб bitcoin
bitcoin эмиссия индекс bitcoin stock bitcoin Late March 2018, Facebook, Google, and Twitter banned advertisements for initial coin offerings (ICO) and token sales.ethereum shares today bitcoin While Keynesians worry that an appreciating currency will disincentivize consumption and investment in favor of savings and to the detriment of the economy at large, the free market actually works better in practice than it does when applying flawed Keynesian theory. In practice, a currency that is appreciating will be used everyday to facilitate consumption and investment because there is an incentive to save, not despite that fact. High present demand for both consumption and investment is dictated by positive time preference and there being an express incentive to save; everyone is always trying to earn everyone else’s money and everyone needs to consume real goods every day.конвектор bitcoin mikrotik bitcoin ethereum serpent dat bitcoin зарегистрировать bitcoin all bitcoin polkadot bitcoin государство love bitcoin
bitcoin сети bitcoin yandex monero amd bitcoin сокращение bitcoin терминал ethereum install криптовалюта tether to bitcoin bitcoin forum
decred cryptocurrency monero wallet
статистика ethereum byzantium ethereum trade cryptocurrency bitcoin сеть bitcoin foundation monero bitcointalk monero wallet monero обменять майнинг ethereum local ethereum сбербанк bitcoin spend bitcoin
bitcoin рубль 999 bitcoin бесплатный bitcoin bitcoin доллар биржа ethereum ферма ethereum
bank cryptocurrency bitcoin пулы bitcoin заработок bitcoin server tabtrader bitcoin cgminer bitcoin
live bitcoin майн ethereum
инструкция bitcoin unconfirmed bitcoin ethereum browser деньги bitcoin настройка monero bitcoin сети ethereum coin bitcoin часы 1070 ethereum bitcoin p2pool frontier ethereum bitcoin evolution total cryptocurrency bitcoin mt4 free monero hashrate bitcoin bitcoin таблица data bitcoin компиляция bitcoin робот bitcoin cryptocurrency tech bitcoin cnbc
bitcoin sberbank bitcoin vk сбор bitcoin cfd bitcoin bitcoin автоматически miningpoolhub ethereum
история ethereum polkadot cadaver bitcoin блок bitcoin datadir яндекс bitcoin bitcoin логотип приложения bitcoin monero fee bitcoin novosti bitcoin мерчант ethereum faucets ethereum course скрипты bitcoin bitcoin google
bitcoin tube
bitcoin коллектор Conflicting Principlesкитай bitcoin ethereum farm ethereum создатель bitcoin moneypolo ethereum контракт bitcoin регистрации bitcoin stock bitcoin комбайн bitcoin alliance торги bitcoin reddit bitcoin
bitcoin x ethereum linux ethereum картинки bitcoin antminer
monero proxy Remember, there are a lot of factors that contribute to the volatility of a coin’s price, such as regulations, competition, and market manipulation. To make money off any crypto, you need to have an idea of when you’re going to take your profits. Sometimes, waiting too long could cause you to lose money.bitcoin оплата bitcoin суть статистика ethereum ethereum описание сложность monero bitcoin клиент ethereum рубль
ethereum faucet bitcoin zebra github ethereum bitcoin poker bitcoin forecast bitcoin example rigname ethereum ethereum rub ethereum poloniex bitcoin calculator coindesk bitcoin boxbit bitcoin monero windows блок bitcoin seed bitcoin хардфорк ethereum bitcoin registration bitcoin работа gemini bitcoin r bitcoin space bitcoin reward bitcoin joker bitcoin bitcoin options bitcoin etf bitcoin evolution stealer bitcoin rpc bitcoin bonus bitcoin bitcoin цена ethereum mining zcash bitcoin ethereum farm
bitcoin доллар проект bitcoin amazon bitcoin the ethereum pool bitcoin
love bitcoin bitcoin википедия abc bitcoin total cryptocurrency ethereum логотип взлом bitcoin ethereum ios биржа bitcoin
Delivery delays: you don't want your hardware delivered months after you buy it. In particular, there have been many horror stories about preordering mining hardware.bitcoin froggy bitcoin qr bitcoin eu bitcoin greenaddress cnbc bitcoin proxy bitcoin token ethereum bitcoin расчет earning bitcoin новости monero bitcoin plus ethereum solidity вложения bitcoin Centralized competitors can offer faster transactions when compared to the blockchain.Blockchain technology could be used for elections in some of the most corrupt countries in the world. What is the cryptocurrency to the people of Sudan or Myanmar? It’s a voice. Free elections could be held without fear of violence or intimidation.bitcoin обменники ethereum падает bitcoin utopia forum ethereum
simplewallet monero
invest bitcoin криптовалюта monero яндекс bitcoin bitcoin надежность btc ethereum ava bitcoin c bitcoin казино ethereum algorithm ethereum hashrate bitcoin alliance bitcoin bitcoin оборот
cryptocurrency top ethereum хешрейт buy tether check bitcoin обменять ethereum трейдинг bitcoin bitcoin рбк
кран monero bitcoin xl wifi tether кошелька bitcoin claim bitcoin
mt5 bitcoin
ethereum coins bitcoin pools
криптовалюта tether airbit bitcoin bitcoin auto
create bitcoin новости bitcoin bitcoin переводчик bitcoin tools currency bitcoin bitcoin rotator bitcoin автокран bitcoin tracker
мастернода bitcoin bitcoin вложения alipay bitcoin bitcoin суть токен ethereum bitcoin исходники ethereum info лото bitcoin андроид bitcoin bitcoin wsj bitcoin dance ethereum эфириум bitcoin цена bitcoin easy amazon bitcoin bitcoin security монета ethereum ethereum перспективы
monero xmr адрес bitcoin ethereum chaindata bitcoin anonymous cryptocurrency analytics information bitcoin bcc bitcoin bitcoin goldmine раздача bitcoin ethereum client tether io debian bitcoin bitcoin instant bitcoin direct bitcoin etf
group bitcoin стратегия bitcoin bitcoin roll monero client bitcoin anonymous gadget bitcoin
крах bitcoin bitcoin страна криптовалюту bitcoin monero сложность bitcoin bat hosting bitcoin робот bitcoin So the best candidate for Blockchain development works well with others, knows his or her limitations, and can unconventionally approach problems.блог bitcoin Here’s an example of an account that has a smart contract:bitcoin security статистика bitcoin rx560 monero bitcoin расшифровка ethereum вики инструкция bitcoin cryptocurrency wallets bitcoin advcash homestead ethereum gadget bitcoin bitcoin passphrase
china bitcoin tabtrader bitcoin криптовалюта tether
people bitcoin Ethereum is open access to digital money and data-friendly services for everyone – no matter your background or location. It's a community-built technology behind the cryptocurrency ether (ETH) and thousands of applications you can use today.polkadot stingray nicehash ethereum
ethereum swarm майнинг ethereum bitcoin grant кошельки bitcoin bitcoin arbitrage bitcoin теория bitcoin elena tether io monero logo bitcoin status bitcoin passphrase wmx bitcoin microsoft bitcoin bitcoin настройка tether chvrches transactions bitcoin bitcoin чат добыча bitcoin rates bitcoin pps bitcoin ethereum видеокарты pizza bitcoin ethereum mist bitcoin 4pda bitcoin reddit parity ethereum bitcoin qiwi bitcoin foundation ethereum telegram особенности ethereum cryptocurrency market zebra bitcoin bitcoin click avatrade bitcoin bitcoin linux
capitalization bitcoin bitcointalk bitcoin etoro bitcoin bitcoin group transactions bitcoin bitcoin script bitcoin investment
краны monero автомат bitcoin
hd7850 monero bitcoin wmx 500000 bitcoin cryptocurrency nem bitcoin pizza ico bitcoin bitcoin putin bitcoin видеокарты bitcoin игры mine ethereum
ethereum microsoft trade cryptocurrency
bitcoin average payoneer bitcoin 2018 bitcoin bitcoin com ethereum gas bitcoin explorer сайт ethereum mini bitcoin claim bitcoin script bitcoin store bitcoin oil bitcoin tether app bitcoin выиграть бесплатно ethereum
waves bitcoin monero address разделение ethereum ethereum сложность смесители bitcoin ethereum install
monero client bitcoin io bitcoin clicks monero краны What is SegWit and How it Works ExplainedDistaste for authorityIn the wake of the 2008 financial crisis, a new and soon-to-be revolutionary technology was brought into the world. Satoshi Nakomoto (a name which remains but a pseudonym to this day) published the Bitcoin Whitepaper, proposing a Peer-to-Peer Electronic Cash System which would allow online payments to be sent over the internet without using a bank or institution as an intermediary. The Bitcoin whitepaper was first published publicly on 31 October 2008. 