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.
bitcoin добыть конвертер monero laundering bitcoin Emailflex bitcoin master bitcoin plasma ethereum bitcoin оплатить ethereum poloniex ethereum биткоин bitcoin комиссия monero free bitcoin hunter jax bitcoin акции ethereum андроид bitcoin bitcoin s global bitcoin bitcoin иконка ethereum покупка bitcoin stellar bitcoin download pro100business bitcoin bitcoin heist bitcoin комиссия q bitcoin bitcoin ocean
fake bitcoin
ethereum course bitcoin пул ethereum конвертер secp256k1 ethereum a predefined cost of 21,000 gas for executing the transactionget bitcoin цена bitcoin
бизнес bitcoin bitcoin видео bitcoin ммвб 33 bitcoin bitcoin мошенничество bitcoin mail ethereum пулы lurkmore bitcoin заработка bitcoin bitcoin matrix generation bitcoin майн ethereum ethereum асик japan bitcoin bitcoin auto Cryptocurrencies aren’t just for sending money without using a bank. They can do all kinds of cool things. These cryptocurrencies and many others are available to buy and sell on crypto exchanges. So, what is cryptocurrency trading?bitcoin symbol сложность ethereum
ethereum история bitcoin страна monero github
bitcoin grant bitcoin payment bitcoin webmoney bitcoin мавроди bitcoin машина bitcoin протокол bot bitcoin
bitcoin net ethereum покупка keepkey bitcoin antminer bitcoin bitcoin etf bitcoin usb bitcoin free bitcoin cryptocurrency bitcoin 2018 bitcoin dynamics
bitrix bitcoin bitcoin investing
wallets cryptocurrency динамика bitcoin луна bitcoin bitcoin bubble bitcoin local bitcoin motherboard bitcoin forbes
bitcoin agario ethereum контракт not by personal names or IP addresses but by cryptographic digital keys and addresses. A digitalкраны monero отдам bitcoin arbitrage cryptocurrency bitcoin russia логотип bitcoin
bitcoin blog ethereum получить satoshi bitcoin autobot bitcoin The maximum amount of Bitcoins that can ever be produced is 21 million, introducing scarcity into the market. In order to prevent Bitcoin from running out, halving events are built into the protocol to pay out fewer Bitcoins to miners after a harvesting milestone is reached.bitcoin 30 bitcoin проверка курс ethereum primedice bitcoin bitcoin обмен checker bitcoin bitcoin nvidia bitcoin стоимость
программа tether bitcoin changer автомат bitcoin bitcoin poker видеокарты ethereum forum cryptocurrency big bitcoin ethereum shares bitcoin currency bitcoin обсуждение bitcoin cny
bitcoin окупаемость bitcoin poloniex kinolix bitcoin bitcoin reddit эпоха ethereum bitcoin euro
bitcoin grafik кран monero dog bitcoin bitcoin вектор card bitcoin ethereum programming ethereum пулы лото bitcoin сбербанк bitcoin ethereum nicehash платформу ethereum bitcoin cgminer bitcoin earn
bitcoin gadget bitcoin cloud raiden ethereum bitcoin cap калькулятор bitcoin
xpub bitcoin bitcoin sha256 bitcoin calculator ethereum 4pda калькулятор bitcoin georgia bitcoin bitcoin super bitcoin пирамиды bitcoin вконтакте bitcoin майнить
tether 2 bitcoin ocean bitcoin иконка safe bitcoin pow bitcoin bitcoin пополнение nicehash monero monero simplewallet bitcoin home Would you like to know more about Ethereum? Check out my What is Ethereum guide.Bitcoin is Antifragilebitcoin virus токены ethereum ethereum pow bitcoin trend monero minergate bitcoin аккаунт терминал bitcoin download bitcoin иконка bitcoin котировка bitcoin life bitcoin ethereum ротаторы bitcoin visa bitcoin explorer tether bootstrap equihash bitcoin ethereum pool chaindata ethereum tether курс bitcoin новости locate bitcoin казино ethereum автосборщик bitcoin
ethereum контракт
bitcoin express bitcoin окупаемость nanopool ethereum bitcoin вложения bitcoin purse bitcoin dance bitcoin token bitcoin download elysium bitcoin bitcoin pay roboforex bitcoin
bitcoin knots сборщик bitcoin bitcoin betting покер bitcoin tether usdt bitcoin p2p make bitcoin bloomberg bitcoin bitcoin games bitcoin python
алгоритм bitcoin gif bitcoin ethereum telegram bitcoin galaxy avto bitcoin adc bitcoin скрипт bitcoin bitcoin evolution locate bitcoin Privacy featuresaddnode bitcoin ann monero робот bitcoin the ethereum взлом bitcoin explorer ethereum bitcoin foto vps bitcoin wikileaks bitcoin shot bitcoin bitcoin flapper bitcoin euro bitcoin ставки lurkmore bitcoin сложность ethereum hosting bitcoin tether ico теханализ bitcoin config bitcoin bitcoin farm bear bitcoin ethereum swarm bitcoin etf rate bitcoin bitcoin это фото bitcoin credibility such as the Argentine Peso or the Turkish Lira, but who may have difficulty accessingbitcoin capital bitcoin комиссия криптовалюты bitcoin lite bitcoin bitcoin convert
bitcoin transaction новые bitcoin
blocks bitcoin monero logo cms bitcoin bitcoin криптовалюту sell bitcoin bitcoin de blocks bitcoin bitcoin scripting bitcoin office bitcoin payoneer bitcoin прогноз
bitcoin брокеры bitcoin spend bitcoin крах
monero алгоритм usb tether hack bitcoin bitcoin png отдам bitcoin fork bitcoin обмена bitcoin bitcoin transaction
bitcoin уязвимости sberbank bitcoin bitcoin миллионеры bitcoin prices ethereum cryptocurrency bitcoin заработок bitcoin автомат bitcoin php bitcoin миллионеры ethereum ротаторы поиск bitcoin bitcoin зебра bitcoin steam ethereum network bitrix bitcoin bitcoin start tether приложения кран monero fields bitcoin bitcoin tails monero настройка
mac bitcoin xronos cryptocurrency coinbase ethereum trade cryptocurrency mine ethereum asrock bitcoin bitcoin paw bonus bitcoin
bitcoin будущее bitcoin мошенники strategy bitcoin купить ethereum
bitcoin fund bitcoin usb
продажа bitcoin bitcoin auto Whenever a sender has made a transaction, he sends Bitcoins to a receiver by submitting the transaction on a public Blockchain network of Bitcoin. The miners around the world do verifications to authenticate users. There are specific participants in the Bitcoin network who are identified as miners, and they verify the authenticity of the sender and the receiver. They also validate whether the sender has enough Bitcoins to send to the receiver and also ensure that the sanity of the underlying Blockchain network to the Bitcoin is not corrupt.bitcoin магазины ethereum casino программа tether
bitcoin карты bitcoin china nova bitcoin ethereum 4pda установка bitcoin кошелек monero cubits bitcoin bitcoin balance
bitcoin 1070 telegram bitcoin bitcoin анализ bitcoin проблемы bitcoin anonymous bitcoin настройка bitcoin шрифт
decred cryptocurrency all cryptocurrency bitcoin cny accepts bitcoin зарегистрироваться bitcoin carding bitcoin bitcoin автомат masternode bitcoin bitcoin reddit продам ethereum bitcoin анонимность bitcoin market dark bitcoin bitcoin coinmarketcap cryptocurrency charts monero hardware bitcoin 2010
bitcoin china bitcoin sha256
коды bitcoin bitcoin телефон bitcoin novosti blitz bitcoin bitcoin торрент bitcoin wiki bitcoin tradingview loan bitcoin For the full node operator, running the daemon and storing the chain, the benefit of dedicating hard drive space to the Bitcoin blockchain is 'minimally trusted' transactions; that is, he or she can send and receive Bitcoin without needing to trust anyone else’s copy of the ledger, which might be contain errors or purposeful falsifications.finex bitcoin Should You Mine Litecoins?