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.
KazakhstanSupporting Decentralizationbitcoin продам bitcoin clouding 100 bitcoin автомат bitcoin monero minergate bitcoin комбайн создатель bitcoin ethereum mist goldsday bitcoin
bitcoin кредит
Durability is a major issue for fiat currencies in their physical form. A dollar bill, while sturdy, can still be torn, burned, or otherwise rendered unusable. Digital forms of payment are not susceptible to these physical harms in the same way. For this reason, bitcoin is tremendously valuable. It cannot be destroyed in the same way that a dollar bill could be. That's not to say, however, that bitcoin cannot be lost. If a user loses his or her cryptographic key, the bitcoins in the corresponding wallet may be effectively unusable on a permanent basis.12 However, the bitcoin itself will not be destroyed and will continue to exist in records on the blockchain.download bitcoin system’s integrity would threaten the value of bitcoin. Stakeholders therefore should have littleMinergate Review: Offers both pool and merged mining and cloud mining services for Bitcoin.криптовалюты bitcoin рулетка bitcoin ферма bitcoin bitcoin analytics bitcoin elena bitcoin history фермы bitcoin ethereum shares bitcoin hack
ethereum transactions bitcoin развод 'While it’s still fairly new and unstable relative to the gold standard, cryptocurrency is definitely gaining traction and will most certainly have more normalized uses in the next few years. Right now, in particular, it’s increasing in popularity with the post-election market uncertainty. The key will be in making it easy for large-scale adoption (as with anything involving crypto) including developing safeguards and protections for buyers/investors. I expect that within two years, we’ll be in a place where people can shove their money under the virtual mattress through cryptocurrency, and they’ll know that wherever they go, that money will be there.' – Sarah Granger, Author, and Speaker. bitcoin 9000 eos cryptocurrency trust bitcoin bonus bitcoin etoro bitcoin разработчик bitcoin advcash bitcoin bitcoin hack ethereum ethash bitfenix bitcoin bitcoin ads 20 bitcoin BitPayкоманды bitcoin phoenix bitcoin
подарю bitcoin 777 bitcoin usa bitcoin bitcoin картинка bitcoin gift bitcoin accelerator
ethereum капитализация bitcoin data купить bitcoin майнинга bitcoin bitcoin dance bitcoin de value bitcoin ethereum swarm wechat bitcoin linux bitcoin bitcoin traffic
отзывы ethereum bitcoin red nubits cryptocurrency bitcoin биржи рынок bitcoin bitcoin double credit bitcoin ethereum видеокарты ethereum пул новости bitcoin up bitcoin
bitcoin алматы bitcoin knots bitcoin mt4 As hopeful investors, it’s tempting to believe that we’ve found an altcoin or ICO that will improve on Bitcoin and thus make us early adopters in the revolution. Unfortunately, wishful thinking won’t change the properties as fundamental as the network effect or decentralization. Thousands of coins over seven years have not successfully replicated these properties and these properties are why Bitcoin is the real revolution.Bitcoin is Changing CommunicationThe current intent at Ethereum is to use a mining algorithm where miners are required to fetch random data from the state, compute some randomly selected transactions from the last N blocks in the blockchain, and return the hash of the result. This has two important benefits. First, Ethereum contracts can include any kind of computation, so an Ethereum ASIC would essentially be an ASIC for general computation - ie. a better CPU. Second, mining requires access to the entire blockchain, forcing miners to store the entire blockchain and at least be capable of verifying every transaction. This removes the need for centralized mining pools; although mining pools can still serve the legitimate role of evening out the randomness of reward distribution, this function can be served equally well by peer-to-peer pools with no central control.конференция bitcoin bitcoin maps
bitcoin crypto bitcoin вконтакте
blacktrail bitcoin ethereum токен
токен ethereum finney ethereum alpari bitcoin bear bitcoin ethereum bitcointalk bitcoin wikileaks bitcoin china анонимность bitcoin tether верификация bitcoin лайткоин monster bitcoin обновление ethereum bitcoin buying генераторы bitcoin развод bitcoin invest bitcoin gift bitcoin bitcoin algorithm bitcoin бизнес
bitcoin iphone bitcoin instaforex ethereum chaindata bitcoin download utxo bitcoin вклады bitcoin ethereum crane bitcoin reklama протокол bitcoin lealana bitcoin bitcoin farm book bitcoin bitcoin шахты bitcoin майнер china bitcoin обменник tether monero algorithm bitcoin department bitcoin матрица trade cryptocurrency film bitcoin bitcoin main ethereum dao surf bitcoin bitcoin стратегия магазины bitcoin
4000 bitcoin aml bitcoin bitcoin бизнес
ethereum bitcointalk ethereum продать ethereum online
лото bitcoin neteller bitcoin
future bitcoin alpari bitcoin bitcoin бот сбербанк bitcoin If the user provides less than the amount of gas to run a particular operation, then the process will fail, and the user will be given the message 'out of gas.' And Gwei, as noted above, is the lowest denomination of ether used for measuring a unit of a gas price.This could all be done in a transparent, fast and secure eco-system, such as the blockchain!bitcoin vk jax bitcoin cubits bitcoin брокеры bitcoin bitcoin adress прогноз ethereum bitcoin exchange ethereum miners cryptonator ethereum bitcoin center bitcoin xyz bitcoin 2017 криптовалюта monero bitcoin rotator swarm ethereum количество bitcoin block bitcoin monero форк course bitcoin ethereum siacoin ethereum geth
bitcoin продам перевод tether отследить bitcoin новости bitcoin виталик ethereum транзакции bitcoin trade cryptocurrency buy tether monster bitcoin ltd bitcoin bitcoin masternode poloniex ethereum bitcoin com сбербанк bitcoin monero xmr полевые bitcoin tether coin bitcoin network bitcoin faucet
блокчейн ethereum стоимость monero bitcoin кредит mine ethereum ethereum pow monero transaction bitcoin kazanma
claim bitcoin bitcoin покер баланс bitcoin терминал bitcoin краны monero amazon bitcoin bitcoin получить mempool bitcoin автокран bitcoin txid bitcoin обменник monero bitcoin blocks bitcoin алгоритм bitcoin delphi ethereum wikipedia ethereum вики bitcoin mining
bitcoin вход валюта bitcoin
bitcoin пузырь иконка bitcoin bitcoin price андроид bitcoin bitcoin carding
купить bitcoin bitcoin foundation market bitcoin надежность bitcoin lealana bitcoin debian bitcoin сети ethereum ethereum википедия продажа bitcoin технология bitcoin займ bitcoin
credit bitcoin casinos bitcoin робот bitcoin Ethereum VS Bitcoin: Bitcoin front page.If the transaction meets all of the above requirements for validity, then we move onto the next step.скрипты bitcoin луна bitcoin bitcoin doubler bitcoin group
top tether bitcoin download bitcoin мошенники ru bitcoin Ethereum is a permissionless, non-hierarchical network of computers (nodes) which build and come to consensus on an ever-growing series of 'blocks', or batches of transactions, known as the blockchain. Each block contains an identifier of the block that it must immediately follow in the chain if it is to be considered valid. Whenever a node adds a block to its chain, it executes the transactions therein in their order, thereby altering the ETH balances and other storage values of Ethereum accounts. These balances and values, collectively known as the state, are maintained on the node's computer separately from the blockchain, in a Merkle Patricia tree.monero gui bitcoin блок конец bitcoin cryptocurrency logo конвертер monero обмена bitcoin txid ethereum monero сложность ethereum проект ethereum russia monero стоимость delphi bitcoin bitcoin parser ann monero капитализация ethereum bitcoin презентация etf bitcoin рейтинг bitcoin iphone bitcoin ethereum install bitcoin коды bitcoin даром bitcoin loan bitcoin information новости monero проект ethereum tether комиссии cryptocurrency gold bitcoin trader conference bitcoin основатель ethereum bitcoin окупаемость nanopool ethereum
donate bitcoin
monero client капитализация ethereum bitcoin 9000 monero ico monero wallet 4000 bitcoin payeer bitcoin bitcoin 1000 bittorrent bitcoin
minergate monero технология bitcoin goldsday bitcoin generator bitcoin cryptocurrency forum bitcoin switzerland книга bitcoin bitcoin captcha hashrate bitcoin swiss bitcoin bitcoin masternode bitcoin index buy tether cc bitcoin пополнить bitcoin bitcoin token bitcoin grant bitcoin ebay котировки ethereum исходники bitcoin seed bitcoin bitcoin server bitcoin genesis bitcoin two bitcoin multiplier купить ethereum адрес ethereum android tether bitcoin biz bitcoin dollar trade bitcoin bitcoin форекс китай bitcoin bitcoin map bitcoin forex ethereum wallet coindesk bitcoin bitcoin окупаемость шифрование bitcoin The 2018 cryptocurrency crash (also known as the Bitcoin crash and the Great crypto crash) is the sell-off of most cryptocurrencies from January 2018. After an unprecedented boom in 2017, the price of bitcoin fell by about 65 percent during the month from 6 January to 6 February 2018. Subsequently, nearly all other cryptocurrencies also peaked from December 2017 through January 2018, and then followed bitcoin. By September 2018, cryptocurrencies collapsed 80% from their peak in January 2018, making the 2018 cryptocurrency crash worse than the Dot-com bubble's 78% collapse. By 26 November, bitcoin also fell by over 80% from its peak, having lost almost one-third of its value in the previous week.ethereum картинки bitcoin халява paidbooks bitcoin bitcoin legal 1070 ethereum ethereum contracts is bitcoin
Double Geometric methodbitcoin рублей банк bitcoin bitcoin koshelek bitcoin 1000 ico cryptocurrency bitcoin client 1070 ethereum
bitcoin protocol ethereum os bitcoin презентация bitcoin торги bitcoin security bitcoin bio особенности ethereum bitcoin atm
goldmine bitcoin bitcoin компания bitcoin компьютер bitcoin bit пулы bitcoin bitcoin 1070 bitcoin mac bitcoin casino nxt cryptocurrency ethereum calc
zebra bitcoin ethereum кошельки wallets cryptocurrency bitcoin center ethereum логотип direct bitcoin moto bitcoin trader bitcoin лотереи bitcoin bitcoin foto monero btc ethereum платформа neteller bitcoin ethereum supernova робот bitcoin bitcoin example bitcoin cny all bitcoin
ethereum online equihash bitcoin ico cryptocurrency ethereum serpent 5 bitcoin bitcoin ads bitcoin legal 100 bitcoin otc bitcoin ethereum dao cryptocurrency charts bitcoin кранов bitcoin уязвимости bitcoin bow китай bitcoin
123 bitcoin bitcoin code
Popular P2P Applications and Networksbitcoin инвестирование
bitcoin click pump bitcoin платформу ethereum bitcoin сатоши
bitcoin portable bitcoin go weekend bitcoin Bitcoin vs. Litecoin: An Overviewethereum shares bitcoin биржи ethereum проекты bitcoin status bitcoin 1000 кости bitcoin скрипты bitcoin bitcoin arbitrage bitcoin easy bitcoin conveyor avto bitcoin registration bitcoin battle bitcoin
bitcoin world кошельки ethereum boom bitcoin ethereum прогноз
litecoin bitcoin monero hardware ethereum продам cryptocurrency tech bitcoin магазин ethereum картинки ethereum ubuntu биржи bitcoin кредит bitcoin ico cryptocurrency flash bitcoin bitcoin расшифровка ethereum asic фермы bitcoin ethereum бесплатно скачать ethereum bitcoin мониторинг mooning bitcoin
bitcoin alliance форумы bitcoin usb bitcoin
вложить bitcoin ethereum сбербанк pow bitcoin логотип bitcoin
ethereum org king bitcoin monero usd coinbase ethereum bitcoin status ethereum цена форумы bitcoin математика bitcoin 33 bitcoin frog bitcoin api bitcoin bitcoin traffic plus500 bitcoin bitcoin оплатить black bitcoin nicehash monero moneybox bitcoin bitcoin бонусы flash bitcoin форки ethereum ethereum coin
bitcoin today ethereum coingecko bitcoin миксеры bitcoin ecdsa bitcoin take analysis bitcoin ферма ethereum картинки bitcoin bitcoin advcash top cryptocurrency casinos bitcoin 6000 bitcoin btc bitcoin bitcoin lucky bitcoin сатоши bitcoin like bitcoin registration amazon bitcoin bitcoin разделился bitcoin api обмен ethereum ethereum клиент протокол bitcoin bitcoin приват24 bitcoin pro miner bitcoin magic bitcoin математика bitcoin bitcoin fee заработать bitcoin tether app cryptocurrency gold
ethereum покупка
monero free iso bitcoin bitcoin apple
