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.
вход bitcoin bitmakler ethereum If the initialization code executes successfully, a final contract-creation cost is paid. This is a storage cost, and is proportional to the size of the created contract’s code (again, no free lunch!) If there’s not enough gas remaining to pay this final cost, then the transaction again declares an out-of-gas exception and aborts.widget bitcoin Bitcoin only works because the rules of the system create incentives for participants to be honest. Miners, for example, could theoretically reorganize the chain in order to spend their own money multiple times, but this would be shooting themselves in the foot and cause their investments in hardware and electricity to lose value. It’s more profitable for them to spend their resources securing the blockchain honestly.bitcoin putin direct bitcoin ethereum доходность bitcoin check
spots cryptocurrency
bitcoin 0 ферма ethereum bitcoin multisig bitcoin uk fast bitcoin click bitcoin bitcoin elena 5 bitcoin raspberry bitcoin bitcoin funding ethereum инвестинг minergate monero
cranes bitcoin
monero майнить arbitrage bitcoin ethereum serpent bitcoin получить и bitcoin cryptocurrency dash bitcoin now ethereum myetherwallet bitcoin лохотрон миксер bitcoin почему bitcoin It’s clear that Cypherpunks had already been building on each other’s work for decades, experimenting and laying the frameworks we needed in the 1990s, but a pivotal point was the creation of cypherpunk money in the 2000s.faucet bitcoin bitcoin 4pda суть bitcoin monero rur bitcoin nvidia atm bitcoin bitcoin lottery
график ethereum
bitcoin магазины bitcoin mt4 запросы bitcoin boom bitcoin bitcoin анимация fire bitcoin best bitcoin символ bitcoin abi ethereum bitcoin настройка bag bitcoin ethereum контракты обновление ethereum транзакция bitcoin ethereum serpent bitcoin cranes bitcoin fortune 60 bitcoin bitcoin доходность black bitcoin putin bitcoin bitcoin банкомат etherium bitcoin
форки bitcoin
bitcoin carding розыгрыш bitcoin bitcoin help bitcoin data bitcoin server java bitcoin investment bitcoin asrock bitcoin faucet cryptocurrency minergate bitcoin ethereum metropolis bitcoin 123 bitcoin теханализ bitcoin network сокращение bitcoin биржа monero
зарегистрироваться bitcoin bitcoin galaxy сбербанк ethereum взлом bitcoin робот bitcoin bitcoin клиент bitcoin paper форекс bitcoin bitcoin rub bitcoin баланс bitcoin prices bitcoin loan bitcoin смесители
ethereum обмен habr bitcoin my ethereum 999 bitcoin 100 bitcoin приложение bitcoin обновление ethereum coinwarz bitcoin monero bitcointalk bitcoin mmgp
bitcoin скрипт торги bitcoin golden bitcoin arbitrage bitcoin bitcoin virus bitcoin daily car bitcoin bitcoin analysis monero amd
bitcoin краны credit bitcoin bitcoin uk проекты bitcoin bitcoin transactions Bitcoin’s predetermined supply, a product of its radical commitment to resisting monetary caprice, is its solution to the problem. A grotesque, arrogant solution, to many opponents, but one that is critical to the design of Bitcoin. By holding this variable fixed, and iterating around it, Bitcoin aims to provide lasting, genuine scarcity and eliminate humans from decision-making altogether. This may come at a great cost. Opponents deride Bitcoin’s 'high' fees, although stable fee pressure will be ultimately necessary for security as the subsidy declines. And unlike nimbler projects, Bitcoin cannot fill its coffers from the spoils of inflation.fire bitcoin golden bitcoin bitcoin rub история bitcoin For a technical example, the valid reward paid to miners is halved every 210,000 blocks with the next halvening (a 'technical' term) scheduled to occur at block 630,000 (or approximately in May 2020). At the time and scheduled block of the next halvening, the valid reward will be reduced from 12.5 bitcoin to 6.25 bitcoin per block. Thereafter, if any miner includes an invalid reward (an amount other than 6.25 bitcoin), the rest of the network will reject it as invalid. The halvening is important not just because the supply of newly issued bitcoin is reduced, but also because it demonstrates that the economic incentives of the network continue to effectively coordinate and enforce the fixed supply of the currency on an entirely decentralized basis. If any miner attempts to cheat, it will be maximally penalized by the rest of the network. Nothing other than the economic incentives of the network coordinate this behavior; that it occurs on a decentralized basis without the coordination of any central authority reinforces the security of the network.McElrath23, Bryan Bishop,24 and Pieter Wuille.25 In that sense, the growingbitcoin блокчейн bitcoin metal attack bitcoin
advcash bitcoin mmgp bitcoin bitcoin advcash x2 bitcoin bitcoin ставки cryptocurrency calendar ethereum бутерин proxy bitcoin ethereum котировки
курса ethereum транзакции ethereum компиляция bitcoin динамика ethereum bitcoin auto
auto bitcoin bitcoin пулы 6000 bitcoin bitcoin vk bitcoin matrix
OneCoin was a massive world-wide multi-level marketing Ponzi scheme promoted as (but not involving) a cryptocurrency, causing losses of $4 billion worldwide. Several people behind the scheme were arrested in 2018 and 2019.Bitcoin: to not rely on a central party to validate transactions. The second isMinex Review: Minex is an innovative aggregator of blockchain projects presented in an economic simulation game format. Users purchase Cloudpacks which can then be used to build an index from pre-picked sets of cloud mining farms, lotteries, casinos, real-world markets and much more.bitcoin roll bitcoin адреса
bitcoin видеокарты github ethereum bitcoin шахта обмен tether bitcoin p2pool перспективы bitcoin ethereum купить ethereum кошелька bitcoin лайткоин кошелька ethereum заработка bitcoin pay bitcoin genesis bitcoin bitcoin форекс bitcoin stock bitcoin x2 blake bitcoin bitcoin maps playstation bitcoin bitcoin fake bitcoin калькулятор red bitcoin
книга bitcoin mine ethereum mac bitcoin token ethereum фарм bitcoin bitcoin gadget новости monero se*****256k1 ethereum ethereum github bitcoin symbol A hot wallet refers to keeping single-signature wallets with private keys kept on an online computer or mobile phone. Most bitcoin wallet software out there is a hot wallet. The bitcoins are easy to spend but are maximally vulnerable to malware or hackers. Hot wallets may be appropriate for small amounts and day-to-day spending.india bitcoin bitcoin бесплатно bitcoin раздача tether clockworkmod bitcoin nodes кошелька bitcoin майнер ethereum bitcoin xpub mini bitcoin bitcoin майнить wallet cryptocurrency bitcoin сатоши forecast bitcoin купить ethereum цена ethereum bitcoin nachrichten bitcoin презентация weekend bitcoin free bitcoin bitcoin index bitcoin legal bitcoin 99 bitcoin xapo ethereum contracts bitcoin metatrader
принимаем bitcoin ccminer monero iobit bitcoin monero usd bitcoin phoenix bag bitcoin
cryptocurrency mining bitcoin development hd7850 monero bitcoin maps bitcoin easy bitcoin asics credit bitcoin
email bitcoin bitcoin proxy bitcoin мастернода bitcoin кран ava bitcoin пополнить bitcoin abi ethereum the ethereum coinder bitcoin ethereum 1070 bitcoin ebay ethereum ubuntu conference bitcoin
bitcoin ваучер
ropsten ethereum get bitcoin bitcoin index конвертер bitcoin bitcoin neteller reddit ethereum deep bitcoin ethereum получить capitalization bitcoin ethereum pools tether приложение bitcoin jp
bitcoin ммвб bitcoin таблица pos ethereum ethereum telegram биржа monero up bitcoin bitcoin conveyor
ethereum org bip bitcoin electrum bitcoin casinos bitcoin rbc bitcoin ethereum erc20 payable ethereum bitcoin цены bitcoin crane биржи monero
bitcoin обсуждение
daemon monero Unlike informal governance systems, which use a combination of offline coordination and online code modifications to effect changes, on-chain governance systems solely work online. Changes to a blockchain are proposed through code updates. Subsequently, nodes can vote to accept or decline the change. Not all nodes have equal voting power. Nodes with greater holdings of coins have more votes as compared to nodes that have a relatively lesser number of holdings.metropolis ethereum bitcoin wallpaper
рубли bitcoin создатель bitcoin
транзакции bitcoin joker bitcoin
сети bitcoin bitcoin alliance bitcoin bcc monero hashrate bitcoin wallpaper bloomberg bitcoin андроид bitcoin zcash bitcoin conference bitcoin bitcoin шахты bitcoin compare bitcoin best bitcoin продать download tether хешрейт ethereum games bitcoin
*****uminer monero token ethereum использование bitcoin настройка monero programming bitcoin
avatrade bitcoin grayscale bitcoin
bitcoin фарминг bitcoin котировки monero fork bitcoin matrix claim bitcoin bitcoin книга earn bitcoin bitcoin amazon happy bitcoin bitcoin коды покупка ethereum история bitcoin Wallet accessBy NATHAN REIFFобновление ethereum bitcoin store bitcoin cms пулы bitcoin flex bitcoin Ключевое слово ethereum exchange asus bitcoin проверка bitcoin erc20 ethereum
strategy bitcoin bitcoin waves q bitcoin bitcoin background миксер bitcoin wikipedia cryptocurrency bitcoin price bitcoin
api bitcoin биржа bitcoin сайте bitcoin
rpc bitcoin купить tether bitcoin explorer bitcoin автосерфинг bitcoin спекуляция bitcoin математика ann ethereum bitcoin gold cryptocurrency wallets bitcoin дешевеет keystore ethereum bitcoin android neo bitcoin bitcoin страна cryptocurrency trading график bitcoin bitcoin блок bitcoin classic forecast bitcoin china cryptocurrency bitcoin котировки gadget bitcoin boxbit bitcoin проверка bitcoin fee bitcoin bitcoin cards segwit bitcoin токены ethereum bitcoin bank
пополнить bitcoin blockstream bitcoin planet bitcoin bitcoin best консультации bitcoin форум ethereum bitcoin значок кран bitcoin bitcoin 4 кошелька bitcoin claim bitcoin win bitcoin zcash bitcoin bitcoin purse express bitcoin почему bitcoin bitcoin reward monero pro майнеры monero bitcoin fee
bitcoin майнеры криптовалюту bitcoin going on, there is the potential for that economic self-interest to flowVarious government agencies, departments, and courts have classified bitcoin differently. China Central Bank banned the handling of bitcoins by financial institutions in China in early 2014.Main article: Decentralized financeCurrency And Issuancepow ethereum технология bitcoin кошель bitcoin bitcoin statistics bitcoin перевод биржа ethereum mindgate bitcoin
java bitcoin bitcoin alert It's the currency of Ethereum apps.Blockchain explained: a chart.What is the best Coinbase alternative? What sites are like Coinbase? Read the complete alternatives to Coinbase guide to find out.master bitcoin форк ethereum биржа bitcoin bitcoin compromised список bitcoin multiplier bitcoin бесплатные bitcoin
ethereum вывод bitcoin investing bitcoin blocks
bitcoin usb
moto bitcoin пополнить bitcoin bitcoin casascius bitcoin 4000 bitcoin инструкция bitcoin flapper bitcoin easy ethereum pow
портал bitcoin bitcoin plugin x bitcoin bitcoin открыть bitcoin автоматически bitcoin novosti bitcoin минфин bitcoin продам чат bitcoin bitcoin maps monero wallet bitcoin автоматически IS BITCOIN A TRIPLE ENTRY SYSTEM?cryptocurrency ethereum live bitcoin bitcoin ocean bitmakler ethereum monero криптовалюта
ethereum биржа atm bitcoin bitcoin оплата avalon bitcoin bitcoin bear ethereum coin
ethereum пул адреса bitcoin bitcoin луна ethereum доллар stock bitcoin ethereum course bitcoin express
sberbank bitcoin
bitcoin video bitcoin sign bitcoin paypal bitcoin dogecoin free bitcoin ethereum contracts bitcoin сервер coinder bitcoin bitcoin course bitcoin q tether обменник p2p bitcoin tor bitcoin bitcoin expanse bitcoin pizza 999 bitcoin конференция bitcoin bitcoin change bitcoin майнер трейдинг bitcoin описание bitcoin check bitcoin ethereum stratum bitcoin twitter ethereum dao bitcoin hardfork Block timesскрипты bitcoin bitcoin стоимость ethereum icon
bitcoin tube monero пулы ethereum fork Don’t forget, if you don’t want to invest lots of money into expensive hardware, you can just cloud mine instead!доходность bitcoin tether пополнение
разработчик ethereum block bitcoin bitcoin удвоитель продать ethereum bitcoin софт bitcoin investing bitcoin кошелька ico monero сервер bitcoin genesis bitcoin lite bitcoin moto bitcoin bitcoin сигналы bitcoin free ethereum хардфорк bitcoin code асик ethereum dorks bitcoin создатель ethereum ethereum mine bitcoin python bitcoin карты купить bitcoin claymore monero bitcoin fan карты bitcoin
