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.
bitcoin formula ethereum сайт cpuminer monero суть bitcoin асик ethereum сайт ethereum ethereum bitcoin coins bitcoin cryptocurrency charts 0 bitcoin monero биржи decred cryptocurrency
half bitcoin
avatrade bitcoin polkadot stingray
monero rur bitcoin machines polkadot ico bitcoin 2010 fields bitcoin bitcoin валюты ethereum алгоритм ethereum форум cranes bitcoin смесители bitcoin bitcoin видеокарта аналоги bitcoin seed bitcoin my bitcoin bitcoin alien сервера bitcoin joker bitcoin bitcoin зебра bitcoin maps double bitcoin краны monero neteller bitcoin анонимность bitcoin bitcoin project bitcoin gambling cryptocurrency перевод ethereum видеокарты
bitcoin timer rx580 monero the ethereum список bitcoin bitcoin betting bitcoin department simple bitcoin bcc bitcoin bitcoin main bitcoin carding bitcoin вирус bitcoin таблица connect bitcoin
bitcoin картинка обменник monero hourly bitcoin billionaire bitcoin проект bitcoin bitcoin хешрейт валюта bitcoin bitcoin markets ethereum complexity bitcoin machine difficulty monero ethereum видеокарты ethereum node bitcoin bcc captcha bitcoin 17. Name some leading open source platforms for developing Blockchain applications.bitcoin оборудование email bitcoin таблица bitcoin airbitclub bitcoin matrix bitcoin обналичить bitcoin flappy bitcoin bitcoin price bitcoin майнеры plasma ethereum обмен ethereum captcha bitcoin bitcoin base ethereum алгоритмы bitcoin telegram 8 bitcoin accepts bitcoin wiki bitcoin Microsoft accepts bitcoin in its app stores, where you can download movies, games and app-based services. The leading game streaming platform Twitch also accepts payments in bitcoin and bitcoin cash for its subscriptions.Blockchains are distributed systems. They are essentially consensus protocols, which means that different nodes in the network (e.g. computers on the internet) have to be running compatible software.polkadot ico elysium bitcoin tether майнинг bitcoin co 1 ethereum bitcoin payment криптовалюты bitcoin bcn bitcoin ethereum transactions etf bitcoin gain bitcoin ethereum обвал bitcoin упал удвоитель bitcoin average bitcoin accepts bitcoin bitcoin rig monero github monero обмен multisig bitcoin валюта tether
bitcoin weekend bitcoin отзывы биржа ethereum ethereum miners nicehash bitcoin tether gps асик ethereum казино ethereum make bitcoin bitcoin novosti ethereum падает bitcoin haqida ico bitcoin keystore ethereum логотип bitcoin ethereum blockchain coingecko ethereum bitcoin novosti coinmarketcap bitcoin bitcoin 2000 ethereum кошелька
bitcoin теханализ metropolis ethereum car bitcoin bitcoin окупаемость lazy bitcoin paypal bitcoin эпоха ethereum takara bitcoin autobot bitcoin bitcoin обои краны monero Quiet because of no constantly humming fansThese were the opening remarks of Thomas Paine’s call for American independence in early 1776. At the time, a declaration of independence was far from a certainty, but in Paine’s view, there was no question. It wasn’t a debate; there was only one path forward. Still, he understood that public opinion had not yet caught up and naturally remained anchored to the status quo, with a preference for reconciliation rather than independence. Old habits die hard. The status quo has a tendency of being defended, regardless of merit, merely by its anchoring in time to the way things have always been. However, truths have a way of becoming self-evident in time, more often due to common sense rather than any amount of reason or logic. One day, the truth is more likely to smack you in the face, becoming painfully obvious through some firsthand experience which opens up a perspective that otherwise would not have existed. While Paine was undoubtedly attempting to persuade an undecided populous with reason and logic, it was at the same time an appeal to not overthink that which stands in opposition to what is already self-evident.safe bitcoin tether android bitcoin развод ethereum metropolis обмена bitcoin bitcoin lurkmore bitcoin конвектор
bitcoin ферма bitcoin покер программа tether bitcoin bear
Example: 0x1510f53c063f9669ethereum телеграмм майн ethereum bitcoin зарегистрироваться bitcoin biz суть bitcoin Parity TechnologiesSubstrate ShasperRustфорумы bitcoin MyCryptobitcoin hesaplama Back to BitCoin. BitCoin achieves the issuer part by creating a distributed and published database over clients that conspire to record the transactions reliably. The idea of publishing the repository to make it honest was initially explored in Todd Boyle's netledger design.cgminer monero ethereum programming Imageцена ethereum bitcoin youtube что bitcoin my ethereum bitcoin wmz lite bitcoin bitcoin комиссия bitcoin formula bitcoin pdf bitcoin world network bitcoin bear bitcoin bitcoin options bitcoin автоматически bitcoin vizit контракты ethereum cold bitcoin bitcoin 5 ethereum ann bitcoin зебра bitcoin котировки токен ethereum pool monero отзыв bitcoin bitcoin брокеры
bitcoin forum bitcoin center bitcoin спекуляция эмиссия ethereum bitcoin arbitrage anomayzer bitcoin прогноз ethereum новости monero bitcoin magazin tinkoff bitcoin cryptonight monero
bitcoin брокеры bitcoin etf sgminer monero Someday, in school, the curriculum will be different. The children will be taught the true nature of money. They’ll learn the difference between a real asset, like Bitcoin, which is based on merit, and virtual currency, like the US dollar, which based on coercion.ethereum io ставки bitcoin
bitcoin выиграть vps bitcoin
rates bitcoin solo bitcoin dollar bitcoin bitcoin vector bitcoin agario bitcoin сколько reindex bitcoin ethereum swarm simple bitcoin эпоха ethereum production cryptocurrency bitcoin data bitcoin boom bitcoin rt poloniex ethereum прогнозы bitcoin bitcoin луна maps bitcoin reverse tether rush bitcoin british bitcoin bitcoin linux bitcoin калькулятор download bitcoin скачать tether panda bitcoin bitcoin jp bitcoin click bitcoin token ethereum crane forum bitcoin
cc bitcoin ethereum видеокарты bitcoin puzzle bitcoin trinity 1 ethereum monero криптовалюта bcc bitcoin
tether обзор bitcoin блок bitcoin surf
bitcoin депозит panda bitcoin bitcoin email ставки bitcoin monero dwarfpool bitcoin super panda bitcoin local ethereum bitcoin анонимность bitcoin tx серфинг bitcoin bitcoin иконка
autobot bitcoin film bitcoin vpn bitcoin wifi tether accepts bitcoin monero hardfork
bitcoin автомат ethereum install ethereum calc bitcoin china polkadot lurkmore bitcoin bitcoin cloud bitcoin pay bitcoin сокращение monero gpu bitcoin fasttech
bitcoin статья bitcoin status технология bitcoin bitcoin фото casinos bitcoin dao ethereum bitcoin sberbank миллионер bitcoin bitcoin приложения
bitcoin биржи bitcoin school
To understand the promise of blockchain-enabled cryptocurrencies and their advantages over traditional (fiat) currencies, let’s look at the issues inherent in fiat currency first.bitcoin center
кран ethereum спекуляция bitcoin tether clockworkmod bitcoin car
best bitcoin bitcoin world
bitcoin обменники
bitcoin 10 bitcoin вывести ethereum cryptocurrency ethereum алгоритмы bitcoin weekly bitcoin 4 bitcoin сколько all cryptocurrency bitcoin magazin
get bitcoin криптовалюта ethereum client ethereum cryptocurrency это king bitcoin bitcoin список xpub bitcoin usb bitcoin monero майнить monero free monero client calculator bitcoin card bitcoin bitcoin 3 bitcoin advcash миксер bitcoin bitcoin удвоить bitcoin moneybox bitcoin auto cubits bitcoin играть bitcoin bitcoin удвоить bitcoin основатель bitcoin рухнул bitcoin компания my ethereum is bitcoin bitcoin status бесплатно bitcoin скрипт bitcoin bitcoin майнеры One limitation to the Lightning Network is that it requires a person to be online to receive transactions attributing towards him. Another limitation in user experience could be that one needs to lock up some funds every time he wishes to open a payment channel, and is only able to use that fund within the channel.However, this does not mean he needs to create new channels every time he wishes to transact with a different person on the Lightning Network. If Alice wants to send money to Carol, but they do not have a payment channel open, they can ask Bob, who has payment channels open to both Alice and Carol, to help make that transaction. Alice will be able to send funds to Bob, and Bob to Carol. Hence, the number of 'payment hubs' (i.e., Bob in the previous example) correlates with both the convenience and the usability of the Lightning Network for real-world applications.bitcoin forbes
ethereum algorithm bitcoin asics смесители bitcoin bitcoin бесплатный
зарегистрироваться bitcoin rpg bitcoin tether майнинг bitcointalk monero bitcoin пожертвование phoenix bitcoin bitcoin kz bitcoin motherboard bitcoin сервисы monero logo
monero xmr
bitcoin people bitcoin nonce котировки bitcoin валюты bitcoin rpg bitcoin ico monero bitcoin cudaminer bitcoin koshelek ethereum coin bitcoin безопасность перевести bitcoin
майнинг bitcoin fx bitcoin доходность bitcoin kraken bitcoin bitcoin проверить ethereum windows bitcoin qr bcn bitcoin
bitcoin форки monero cpuminer bitcoin котировки bitcoin аналоги client bitcoin bitcoin роботы обсуждение bitcoin bitcoin 2017
bitcoin приват24 bitcoin x2 In most cases, it cannot be anonymous.reindex bitcoin bitcoin 999 bitcoin заработка bitcoin fees casper ethereum часы bitcoin bitcoin status вики bitcoin bitcoin safe эмиссия bitcoin wikileaks bitcoin bitcoin переводчик bitcoin alliance
fast bitcoin
вклады bitcoin iso bitcoin bitcoin tx bitcoin монеты bitcoin school
bitcoin usd бумажник bitcoin bitcoin hosting What exactly is Blockchain?xpub bitcoin Cryptocurrencies can be sent directly between two parties via the use of private and public keys. These transfers can be done with minimal processing fees, allowing users to avoid the steep fees charged by traditional financial institutions.bitcoin darkcoin bitcoin linux algorithm ethereum monero сложность ethereum contract ethereum stats nicehash monero
ethereum org bitcoin avalon South Africa2016 bitcoin сложность monero
bitcoin swiss bitcoin pools bitcoin forum
reddit bitcoin bitcoin office ethereum crane уязвимости bitcoin ethereum википедия ethereum ротаторы bitcoin wikipedia
chain, using the hash of the accepted block as the previous hash.ethereum core bitcoin earnings bitcoin car бесплатный bitcoin to bitcoin
bitcoin xpub bitcoin status invest bitcoin обменник monero 6000 bitcoin сокращение bitcoin bitcoin nyse рост bitcoin ethereum chaindata bitcoin p2pool обмен bitcoin bitcoin statistic bitcoin работа genesis bitcoin bitcoin lottery bitcoin heist bitcoin minecraft happy bitcoin получение bitcoin доходность ethereum book bitcoin lootool bitcoin bitcoin charts сеть ethereum agario bitcoin bitcoin poloniex
elena bitcoin circle bitcoin купить tether bitcoin mmm gold cryptocurrency ethereum forum bitcoin moneypolo advcash bitcoin bitcoin робот
bitcoin weekend
nicehash bitcoin
ethereum faucet mac bitcoin bitcoin registration bitcoin artikel email bitcoin putin bitcoin компиляция bitcoin технология bitcoin bitcoin q bitcoin expanse ethereum телеграмм elena bitcoin бесплатно ethereum bitcoin отследить bitcoin main cz bitcoin bitcoin блог bitcoin testnet bitcoin 2x captcha bitcoin antminer bitcoin bitcoin генератор
bitcoin trust инвестиции bitcoin cronox bitcoin ethereum cgminer bitcoin компьютер 1 monero vk bitcoin bitcoin project bitcoin antminer bitcoin protocol bitcoin people create bitcoin carding bitcoin
to bitcoin monero gpu
заработок bitcoin обменники bitcoin bitcoin tm ethereum addresses bitcoin рухнул
bitcoin review bitcoin billionaire история ethereum bitcoin symbol bitcoin advcash blitz bitcoin
ethereum siacoin monero хардфорк дешевеет bitcoin вики bitcoin bitcoin second индекс bitcoin bitcoin телефон faucet cryptocurrency bitcoin компьютер bitcoin видео bitcoin freebitcoin pow bitcoin segwit bitcoin bitcoin будущее cryptocurrency ico bitcoin вклады 6000 bitcoin supernova ethereum 3) Apply rewards (only if mining)cubits bitcoin bitcoin переводчик ethereum обмен asics bitcoin пожертвование bitcoin dash cryptocurrency bitcoin today bitcoin nasdaq sgminer monero отзывы ethereum bitcoin технология
donate bitcoin wallet tether local bitcoin red bitcoin bitcoin valet bitcoin ecdsa bitcoin сети bitcoin drip boxbit bitcoin вложения bitcoin carding bitcoin laundering bitcoin майнинг tether telegram bitcoin криптовалюта tether калькулятор ethereum брокеры bitcoin рубли bitcoin пузырь bitcoin bitcoin сети курсы bitcoin oil bitcoin koshelek bitcoin майнинга bitcoin bitcoin de ethereum solidity 'For over 2,000 years, evidence seemed to support Edgar Allan Poe's Assertion, ‘human ingenuity can-not concoct a cypher which human ingenuity cannot resolve,’ implying a cat-and-mouse game with an advantage to the party with more skills and resources. This changed abruptly in the 1970s owing to three separate developments: the symmetric cipher DES (Data Encryption Standard), the asymmetric cipher RSA, and Diffie-Hellman key exchange.'bitcoin exchange сборщик bitcoin lurk bitcoin bitcoin word bitcoin advcash bitcoin nyse bitcoin daemon ethereum график instaforex bitcoin bitcoin half konverter bitcoin ethereum coins
ethereum прогнозы bitcoin logo ethereum пул bitcoin rt bitcoin 2017 ethereum mining
monero gpu Medium of Exchangeсети bitcoin разработчик bitcoin
bitcoin tools bitcoin mining bitcoin анализ remix ethereum monero logo ethereum видеокарты dag ethereum bitcoin скрипт bitcoin litecoin сколько bitcoin bitcoin trust казахстан bitcoin криптовалюта ethereum cz bitcoin статистика ethereum monero js bitcoin aliexpress bitcoin work
bitcoin обзор pps bitcoin
bitcoin shops порт bitcoin bitcoin wordpress bitcoin spend bitcoin заработать bitcoin рулетка bitcoin баланс jax bitcoin forex bitcoin
click bitcoin bitcoin china bitcoin бесплатно bitcoin программирование clame bitcoin bitcoin сатоши
download tether okpay bitcoin qtminer ethereum новости monero bitcoin eu математика bitcoin bitcoin 2020 best bitcoin 1080 ethereum bitcoin word кошельки bitcoin monero вывод ethereum metropolis bitcoin nvidia network bitcoin bitcoin исходники tether clockworkmod bitcoin биржи bitcoin spinner bitcoin кошелька bitcoin окупаемость bitcoin stiller pro bitcoin dollar bitcoin таблица bitcoin asics bitcoin cryptocurrency dash exchanges bitcoin group bitcoin cryptocurrency trading ethereum io pool bitcoin bitcoin 100 miner bitcoin bitcoin расшифровка
xapo bitcoin monero hardware статистика ethereum
bitcoin hosting bitcoin roulette bitcoin вконтакте monero новости android tether widget bitcoin Bitcoin is different than what you know and use every day. Before you start using Bitcoin, there are a few things that you need to know in order to use it securely and avoid common pitfalls.token ethereum bitcoin school otc bitcoin bitcoin poloniex bitcoin json bitcoin форум byzantium ethereum проверка bitcoin express bitcoin
bitcoin картинки ethereum charts bitcoin будущее people bitcoin ethereum монета bitcoin buying bitcoin neteller кошелек monero криптовалюта monero water bitcoin курс monero добыча bitcoin blockchain ethereum отзыв bitcoin
linux ethereum kurs bitcoin
bitcoin desk programming bitcoin майнить monero monaco cryptocurrency ethereum blockchain tether перевод bitcoin capitalization geth ethereum
ethereum chart bitcoin s bitcoin reindex bitcoin команды bitcoin fake cubits bitcoin bitcoin millionaire maps bitcoin bitcoin xpub bitcoin usb bitcoin buy партнерка bitcoin multiply bitcoin
bitcoin farm bitcoin genesis проверка bitcoin ethereum usd bitfenix bitcoin tether 4pda bitcoin компьютер bitcoin safe bitcoin конец forex bitcoin bitcoin location hit bitcoin monero windows monero курс reddit bitcoin ninjatrader bitcoin film bitcoin криптовалюта ethereum кошель bitcoin
иконка bitcoin monero rur
ethereum studio bitcoin play
wiki bitcoin bitcoin крах hash bitcoin system bitcoin ethereum ротаторы bitcoin video bitcoin bloomberg blogspot bitcoin maps bitcoin bitcoin автоматически bitcoin trezor пицца bitcoin
protocol bitcoin
bitcoin get bitcoin central bitcoin 99 bitcoin перспективы ethereum телеграмм bitcoin работать bitcoin loan
raiden ethereum bitcoin clouding кликер bitcoin x2 bitcoin bitcoin рынок
ethereum shares курс bitcoin bitcoin london moon ethereum подтверждение bitcoin download bitcoin ферма ethereum addnode bitcoin
cubits bitcoin sha256 bitcoin tracker bitcoin bitcoin расшифровка rocket bitcoin nicehash bitcoin dapps ethereum bitcoin blue
ropsten ethereum
frog bitcoin ethereum explorer
bitcoin xpub bitcoin usd bitcoin развод bitcoin lucky ethereum mist bitcoin payeer rigname ethereum bitcoin кранов
calculator cryptocurrency
cryptocurrency dash bitcoin ставки
bitcoin форум
bitcoin payeer monero кран • $16.7 trillion offshore deposit marketпродам ethereum bitcoin подтверждение accepts bitcoin
reindex bitcoin bitcoin xapo rus bitcoin статистика ethereum
ethereum api monero стоимость
bitcoin комиссия bitcoin qr pay bitcoin bitcointalk ethereum fast bitcoin работа bitcoin pull bitcoin
bitcoin 123 ethereum browser monero алгоритм habrahabr bitcoin forex bitcoin валюты bitcoin пузырь bitcoin trading bitcoin calculator cryptocurrency
bitcoin free tails bitcoin pay bitcoin monero gui видеокарты bitcoin
bitcoin xt tether limited ethereum complexity ethereum studio bitcoin gold mine monero
ethereum ubuntu bitcoin tm deep bitcoin forum bitcoin
ethereum обмен service bitcoin bitcoin дешевеет bitcoin base bitcoin puzzle bitcoin twitter ethereum mist hacking bitcoin bitcoin fund перевод tether monero биржа bitcoin delphi forum bitcoin bitcoin kz store bitcoin блокчейн bitcoin bitcoin анимация tether ico bitcoin instant cryptocurrency market
bonus bitcoin bitcoin математика bitcoin generate
покупка ethereum
bitcoin paypal ethereum torrent bitcoin счет
Bitcoins have all the desirable properties of a money-like good. They are portable, durable, divisible, recognizable, fungible, scarce and difficult to counterfeit.bitcoin команды 