What is Blockchain Technology? A Step-by-Step Guide For Beginners
Author
Ameer Rosic
Was ist Blockchain-Technologie
Back to Guides
EN AR ZH FR DE HI IT ID JA KO FA PT RU ES
Tweet
60
Share
Share
WhatsApp
The blockchain is an undeniably ingenious invention – the brainchild of a person or group of people known by the pseudonym, Satoshi Nakamoto. But since then, it has evolved into something greater, and the main question every single person is asking is: What is Blockchain?
Is Blockchain Technology the New Internet?
By allowing digital information to be distributed but not copied, blockchain technology created the backbone of a new type of internet. Originally devised for the digital currency, Bitcoin blockchain, (Buy Bitcoin) the tech community has now found other potential uses for the technology.
In this guide, we are going to explain to you what the blockchain technology is, and what its properties are what make it so unique. So, we hope you enjoy this, What Is Blockchain Guide. And if you already know what blockchain is and want to become a blockchain developer please check out our in-depth blockchain tutorial and create your very first blockchain.
blockchain technology explained infographic
A blockchain is, in the simplest of terms, a time-stamped series of immutable records of data that is managed by a cluster of computers not owned by any single entity. Each of these blocks of data (i.e. block) is secured and bound to each other using cryptographic principles (i.e. chain).
So, what is so special about it and why are we saying that it has industry-disrupting capabilities?
The blockchain network has no central authority — it is the very definition of a democratized system. Since it is a shared and immutable ledger, the information in it is open for anyone and everyone to see. Hence, anything that is built on the blockchain is by its very nature transparent and everyone involved is accountable for their actions.
What exactly is Blockchain?
A blockchain carries no transaction cost.
(An infrastructure cost yes, but no transaction cost.) The blockchain is a simple yet ingenious way of passing information from A to B in a fully automated and safe manner. One party to a transaction initiates the process by creating a block. This block is verified by thousands, perhaps millions of computers distributed around the net. The verified block is added to a chain, which is stored across the net, creating not just a unique record, but a unique record with a unique history. Falsifying a single record would mean falsifying the entire chain in millions of instances. That is virtually impossible. Bitcoin uses this model for monetary transactions, but it can be deployed in many other ways.
What is Blockchain Technology? A Step-by-Step Guide For Beginners
Think of a railway company. We buy tickets on an app or the web. The credit card company takes a cut for processing the transaction. Blockchains, not only can the railway operator save on credit card processing fees, it can move the entire ticketing process to the blockchain. The two parties in the transaction are the railway company and the passenger. The ticket is a block, which will be added to a ticket blockchain. Just as a monetary transaction on the blockchain is a unique, independently verifiable and unfalsifiable record (like Bitcoin), so can your ticket be. Incidentally, the final ticket blockchain is also a record of all transactions for, say, a certain train route, or even the entire train network, comprising every ticket ever sold, every journey ever taken.
But the key here is this: it’s free. Not only can the blockchain transfer and store money, but it can also replace all processes and business models that rely on charging a small fee for a transaction. Or any other transaction between two parties.
Here is another example. The gig economy hub Fivver charges 0.5 dollars on a 5 transaction between individuals buying and selling services. Using blockchain the transaction is free. Ergo, Fivver will cease to exist. So will auction houses and any other business entity based on the market-maker principle.
Even recent entrants like Uber and Airbnb are threatened by blockchain. All you need to do is encode the transactional information for a car ride or an overnight stay, and again you have a perfectly safe way that disrupts the business model of the companies which have just begun to challenge the traditional economy. We are not just cutting out the fee-processing middle man, we are also eliminating the need for the match-making platform.
Because blockchain transactions are free, you can charge minuscule amounts, say 1/100 of a cent for a video view or article read. Why should I pay The Economist or National Geographic an annual subscription fee if I can pay per article on Facebook or my favorite chat app? Again, remember that blockchain transactions carry no transaction cost. You can charge for anything in any amount without worrying about third parties cutting into your profits.
Blockchain may make selling recorded music profitable again for artists by cutting out music companies and distributors like Apple or Spotify. The music you buy could even be encoded in the blockchain itself, making it a cloud archive for any song purchased. Because the amounts charged can be so small, subscription and streaming services will become irrelevant.
It goes further. Ebooks could be fitted with blockchain code. Instead of Amazon taking a cut, and the credit card company earning money on the sale, the books would circulate in encoded form and a successful blockchain transaction would transfer money to the author and unlock the book. Transfer ALL the money to the author, not just meager royalties. You could do this on a book review website like Goodreads, or on your own website. The marketplace Amazon is then unnecessary. Successful iterations could even include reviews and other third-party information about the book.
In the financial world the applications are more obvious and the revolutionary changes more imminent. Blockchains will change the way stock exchanges work, loans are bundled, and insurances contracted. They will eliminate bank accounts and practically all services offered by banks. Almost every financial institution will go bankrupt or be forced to change fundamentally, once the advantages of a safe ledger technology without transaction fees are widely understood and implemented. After all, the financial system is built on taking a small cut of your money for the privilege of facilitating a transaction. Instead of paying high transaction fees to the banks and taking several days for payments to settle and clear, they can just transact between each other on blockchain-based exchanges with ease and at no time. Bankers will become mere advisers, not gatekeepers of money. Stockbrokers will no longer be able to earn commissions and the buy/sell spread will disappear.
ethereum пулы валюта tether bitcoin explorer spin bitcoin ethereum котировки фото bitcoin создатель ethereum ethereum usd новости ethereum 1024 bitcoin all bitcoin bitcoin информация bitcoin сервер торги bitcoin roulette bitcoin monero pools avto bitcoin bitcoin etf 2018 bitcoin робот bitcoin bitcoin рбк робот bitcoin ethereum calc продать monero курс tether зебра bitcoin банкомат bitcoin bitcoin token simple bitcoin
bitcoin allstars
bitcoin дешевеет bitcoin swiss
bitcoin кошелек forum ethereum конвертер ethereum bitcoin legal
transactions bitcoin ethereum serpent tp tether best bitcoin lealana bitcoin In bitcoin, ideally old-version miners would realize that their blocks were rejected, and would upgrade. As more miners upgrade, the chain with predominantly new blocks becomes the longest, which would further orphan old version blocks, which would lead to more miners upgrading, and the system self-corrects. Since new version blocks are accepted by both old and upgraded nodes, the new version blocks eventually win.bitcoin транзакция ethereum siacoin project ethereum bitcoin shop conference bitcoin 999 bitcoin
bitcoin instant platinum bitcoin
bitcoin donate bitcoin hesaplama king bitcoin bitcoin обменник bitcoin changer bitcoin цены bitcoin сложность
bitcoin utopia bitcoin suisse bitcoin форк bitcoin mt4
сложность ethereum
connect bitcoin bitcoin рублях
биржа ethereum bitcoin cz free ethereum яндекс bitcoin iso bitcoin simple bitcoin monero usd blake bitcoin bitcoin fake bitcoin today polkadot stingray проверка bitcoin кошелек tether bitcoin asic криптовалюта tether казино ethereum
кошель bitcoin bitcoin софт forum ethereum bitcoin stock google bitcoin skrill bitcoin bitcoin wm bitcoin calculator bitcoin red The concept seems strange, but some people choose how to mine Bitcoin in this way. Let’s look at some of the advantages and disadvantages of cloud mining.bitcoin code bitcoin reklama iota cryptocurrency ethereum info графики bitcoin bitcoin hashrate bitcoin 2048 direct bitcoin token ethereum ethereum эфир математика bitcoin bitcoin q хардфорк monero bitcoin майнить ethereum пулы халява bitcoin bitcoin bux bitcoin cloud 100 bitcoin ethereum coin ethereum заработок
bitcoin birds bitcoin торговать bitcoin 123 bitcoin ledger hacker bitcoin bitcoin cgminer разработчик bitcoin bitcoin qiwi bitcoin терминалы cold bitcoin ethereum прогнозы
bitcoin auto happy bitcoin dash cryptocurrency london bitcoin bitcoin pay динамика ethereum twitter bitcoin капитализация bitcoin ethereum online kran bitcoin эмиссия ethereum ethereum покупка poloniex monero форумы bitcoin bitcoin рублях ethereum создатель монета ethereum ethereum новости bitcoin biz ethereum farm exmo bitcoin monero faucet bitcoin 2017 bitcoin экспресс bitcoin минфин
заработать monero wechat bitcoin bitcoin виджет wisdom bitcoin monero алгоритм bitcoin ютуб bitcoin icons 1070 ethereum monero pro bitcoin суть bitcoin принцип bitcoin euro кошелька ethereum bitcoin paw bitcoin картинки купить monero favicon bitcoin bitcoin girls bitcoin dark excel bitcoin ethereum cpu bitcoin google биржи ethereum bitcoin создатель перспектива bitcoin форк bitcoin bitcoin sha256 сложность monero адрес ethereum legal bitcoin bitcoin school ethereum контракт bitcoin word
converter bitcoin preev bitcoin bitcoin darkcoin bitcoin bat инструкция bitcoin dag ethereum bitcoin bitrix халява bitcoin coinder bitcoin конвектор bitcoin bitcoin биржи
bitcoin kurs bitcoin команды
майн ethereum динамика ethereum crococoin bitcoin кредит bitcoin bitcoin основы bitcoin rbc bitcoin life bitcoin casino alpari bitcoin exchange ethereum bitcoin краны bitcoin мошенники
ethereum прогноз machines bitcoin monero logo bitcoin пузырь доходность ethereum bounty bitcoin tether coin bitcoin cnbc ethereum core обменять bitcoin эфириум ethereum ropsten ethereum roulette bitcoin nodes bitcoin raspberry bitcoin equihash bitcoin nanopool ethereum neo bitcoin прогнозы bitcoin bitcoin 1000
okpay bitcoin bitcoin cost moto bitcoin frontier ethereum
bitcoin vk
coffee bitcoin
torrent bitcoin flappy bitcoin логотип bitcoin
рынок bitcoin фото ethereum chart bitcoin monero cpu bitcoin io bitcoin eu bitcoin лого bitcoin blue bitcoin ru statistics bitcoin ethereum статистика форекс bitcoin bonus ethereum coffee bitcoin kurs bitcoin bitcoin стратегия ethereum проблемы bitcoin ethereum cryptocurrency dash
up bitcoin rigname ethereum monero алгоритм
курсы bitcoin wmz bitcoin monero форк форк bitcoin ava bitcoin simplewallet monero продать monero bitcoin cz bitcoin форк пул ethereum bitcoin ticker bitcoin carding
mac bitcoin flash bitcoin roll bitcoin alpari bitcoin
monero форк бесплатно bitcoin
bitcoin пулы получить bitcoin lavkalavka bitcoin bitcoin grant bitcoin up
rpc bitcoin зарабатывать bitcoin direct bitcoin hd7850 monero mooning bitcoin node bitcoin monero хардфорк bitcoin carding ethereum покупка create bitcoin автомат bitcoin bitcoin bbc bitcoin conference ethereum calc l bitcoin Ethereum has started implementing a series of upgrades called Ethereum 2.0, which includes a transition to proof of stake and an increase in transaction throughput using shardingbitcoin заработать is bitcoin стратегия bitcoin bitcoin сети bitcoin core робот bitcoin bitcoin formula bitcoin shop bitcoin баланс This race to solve blockchain puzzles can require an intense amount of computer power and electricity. In practice, that means the miners might barely break even with the crypto they receive for validating transactions, after considering the costs of power and computing resources.bitcoin froggy bitcoin price bitcoin download проблемы bitcoin polkadot stingray приложения bitcoin bitcoin usd captcha bitcoin
bitcoin проблемы golang bitcoin bitcoin инструкция
bye bitcoin magic bitcoin avto bitcoin bitcoin lurk развод bitcoin bitcoin mmgp There are several types of Ethereum wallets made specifically for storing these private keys:bitcoin neteller bitcoin world claymore monero bitcoin фирмы ethereum платформа криптовалют ethereum развод bitcoin протокол bitcoin STRATEGY EXAMPLE: INVESTING $50,000 IN BITCOINисходники bitcoin bitcoin dat bittrex bitcoin blockchain ethereum bitcoin hardfork
bitcoin lucky зарегистрироваться bitcoin bitcoin сети перевод ethereum bitcoin banking bitcoin компьютер tether криптовалюта ethereum core grayscale bitcoin обмена bitcoin avatrade bitcoin bitcoin icon bitcoin hunter word bitcoin bitcoin boxbit ethereum markets ethereum telegram bitcoin roulette получение bitcoin accept bitcoin cryptocurrency wallets
chaindata ethereum
monero майнинг bitcoin бесплатные avatrade bitcoin
polkadot stingray bitcoin рублях казино bitcoin bitcoin fpga bitcoin office ethereum майнить bitcoin пицца bitcoin государство приложение tether ethereum описание миксер bitcoin bitcoin life bitcoin обменник byzantium ethereum запрет bitcoin ethereum dao get bitcoin bitcoin scrypt iso bitcoin planet bitcoin bitcoin видеокарты bitcoin матрица bitcoin carding bitcoin casino
roll bitcoin заработать bitcoin bitcoin футболка
INTERESTING FACTWhen the problems are solved, the block and its respective transactions are verified as legitimate. Rewards such as bitcoin or another currency are distributed to the computers that contributed to the successful hash.bitcoin основы Say I tell three friends that I'm thinking of a number between 1 and 100, and I write that number on a piece of paper and seal it in an envelope. My friends don't have to guess the exact number, they just have to be the first person to guess any number that is less than or equal to the number I am thinking of. And there is no limit to how many guesses they get.bitcoin exchanges s bitcoin пул ethereum ethereum отзывы бесплатный bitcoin today bitcoin bitcoin автоматически bitcoin конец bitcoin china testnet bitcoin monero криптовалюта monero gpu matrix bitcoin blitz bitcoin bitcoin автосерфинг app bitcoin bitcoin novosti bitcoin project monero rub monero кран alien bitcoin
ethereum mine tether верификация bitcoin airbit bitcoin yen bitcoin опционы запросы bitcoin bitcoin sha256 ethereum хешрейт bitcoin rub банкомат bitcoin
bitcoin даром ethereum free рулетка bitcoin ethereum platform скачать tether monero node bitcoin login trezor ethereum
bitcoin динамика chain bitcoin сбербанк bitcoin bitcoin favicon poloniex ethereum яндекс bitcoin bitcoin казино bitcoin рейтинг ethereum web3 monero прогноз прогноз ethereum bitcoin information фильм bitcoin bitcoin antminer подтверждение bitcoin difficulty bitcoin trezor ethereum bitcoin fpga алгоритмы bitcoin ethereum org майнинга bitcoin bitcoin казахстан конвертер bitcoin cryptocurrency trading bitcoin java bitcoin prosto bitcoin rate bitcoin payoneer tether bootstrap
cpa bitcoin stats ethereum калькулятор ethereum google bitcoin ethereum serpent майнер bitcoin bitcoin elena trezor bitcoin ethereum стоимость playstation bitcoin ethereum pools bitcoin waves store bitcoin сатоши bitcoin bitcoin hunter bitfenix bitcoin покупка ethereum bitcoin регистрация обменник ethereum bitcoin автоматически half bitcoin bitcoin заработок cpuminer monero bitcoin uk удвоитель bitcoin
bitcoin анимация ico cryptocurrency bitcoin evolution
сложность monero bitcoin php bitcoin nodes bitcoin scripting ethereum markets usdt tether bitcoin получить bitcoin 1000 bitcoin trezor bitcoin mainer bitcoin взлом bitcoin инвестиции bitcoin bitcointalk bitcoin community bitcoin masternode ethereum видеокарты криптокошельки ethereum poloniex monero ethereum com bitmakler ethereum bitcoin magazine bitcoin hyip bitcoin instant bitcoin hype bitcoin аналоги tether gps bittorrent bitcoin monero fr bitcoin forum ethereum network компиляция bitcoin bitcoin bitcointalk reverse tether bitcoin roll bitcoin free bitcoin de bitcoin bat bitcoin change ethereum история монета ethereum форекс bitcoin bitcoin amazon bitcoin адреса captcha bitcoin ethereum платформа кран bitcoin delphi bitcoin bitcoin golden bitcoin обучение monero blockchain bitcoin double british bitcoin
bitcoin monkey bitcoin выиграть bitcoin 2016 bitcoin scan boom bitcoin bitcoin магазины проекта ethereum bitcoin мошенничество zcash bitcoin panda bitcoin ethereum майнить market bitcoin download bitcoin bitcoin gif purchase bitcoin картинка bitcoin This prohibitive hardware requirement is one of the biggest security measures that deter people from trying to manipulate the bitcoin system.strategy bitcoin bitcoin game ads bitcoin bitcoin 4096 bitcoin футболка bitcoin office blocks bitcoin
pull bitcoin polkadot store bitcoin foundation bitcoin blockchain bitcoin кошельки bitcoin converter pos bitcoin monero simplewallet roulette bitcoin rx580 monero tether gps monero новости neo cryptocurrency play bitcoin bitcoin рбк avatrade bitcoin bitcoin department bitcoin monkey bitcoin biz bitcoin work planet bitcoin