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 ebay bitcoin location bitcoin collector check bitcoin
bitcoin parser
bitcoin инструкция bitcoin take bitcoin scripting видео bitcoin amd bitcoin field bitcoin фьючерсы bitcoin
bitcointalk ethereum
bitcoin book символ bitcoin android tether
ethereum shares bitcoin flapper bitcoin nvidia динамика ethereum importprivkey bitcoin продажа bitcoin bitcoin mining rinkeby ethereum bitcoin group bitcoin rus bitcoin bazar bitcoin alien работа bitcoin monero pro bitcoin knots bitcoin компьютер
bitcoin mmm ethereum chaindata bitcoin statistics яндекс bitcoin bitcoin hacker криптовалюта monero ethereum coins client ethereum bitcoin адреса mooning bitcoin bitcoin swiss bitcoin будущее bitcoin приват24 monero dwarfpool scrypt bitcoin bitcoin окупаемость
ethereum метрополис
bitcoin com bitcoin мавроди reverse tether bitcoin зарегистрироваться bitcoin rotator
iobit bitcoin bitcoin ru ethereum forks pools bitcoin bitcoin доходность bitcoin motherboard капитализация ethereum вложения bitcoin bitcoin транзакция data bitcoin bitcoin monkey index bitcoin bitcoin машины ethereum stats bitcoin script bitcoin blue lavkalavka bitcoin bittrex bitcoin bitcoin grant bitcoin регистрации remix ethereum
bitcoin allstars bitcoin упал bitcoin drip wikileaks bitcoin bitcoin demo bitcoin динамика usb bitcoin bitcointalk ethereum
bitcoin faucets обмен ethereum spots cryptocurrency
bitcoin xapo bitcoin register
bitcoin fasttech bitcoin converter bitcoin onecoin 6000 bitcoin bitcoin 9000 monero bitcointalk заработать bitcoin bitcoin api
china bitcoin bitcoin mercado bitcoin rub
Protocolinformation bitcoin ethereum poloniex халява bitcoin bitcoin aliexpress bitcoin grant bitcoin cran token ethereum bitcoin пожертвование bitcoin valet bitcoin смесители eth ethereum home bitcoin connect bitcoin king bitcoin bitcoin motherboard
видео bitcoin
генераторы bitcoin перспективы ethereum neo bitcoin
bitcoin обучение claim bitcoin bitcoin forbes bitcoin 4 bitcoin avalon bitcoin links map bitcoin ethereum php bitcoin tm capitalization bitcoin tether 2 график bitcoin mini bitcoin ropsten ethereum sec bitcoin monero форк dorks bitcoin get bitcoin bitcoin flex раздача bitcoin майнер ethereum tether bootstrap автомат bitcoin протокол bitcoin bitcoin bazar
вклады bitcoin ethereum форум ethereum addresses bitcoin кошелек bitcoin ethereum
bitcoin service 2016 bitcoin hd bitcoin bitcoin simple bitcoin weekly форекс bitcoin bitcoin spinner
bitcoin linux bitcoin валюты hashrate ethereum bitcoin сборщик bitcoin hd bitcoin security microsoft bitcoin swiss bitcoin rx560 monero bitcoin advcash bitcoin видеокарты wifi tether testnet ethereum bitcoin кости masternode bitcoin bitcoin россия bitcoin shop ethereum проблемы
hashrate bitcoin bitcoin wiki fork bitcoin bitcoin background проекта ethereum
контракты ethereum
Once a transaction is confirmed, it is stored on the ledger and protected using cryptography. It cannot be changed or deleted without a consensus (the group agreement), which makes the blockchain unbreakable. Pretty cool, eh?bitcoin wm 999 bitcoin bitcoin london
reklama bitcoin
сбербанк ethereum metal bitcoin my ethereum 60 bitcoin bitcoin wm bitcoin simple raiden ethereum bitcoin china ethereum форки rates bitcoin bitcoin book bitcoin продам bitcoin instant bitcoin шахты
bitcoin download bitcoin banking ethereum testnet бот bitcoin bitcoin прогнозы bitcoin доходность bitcoin auction
ethereum сайт cryptonote monero магазин bitcoin coingecko ethereum
roulette bitcoin CRYPTOfor the winning line-up of the top 5 currencies under Bitcoin. One possibility is that the gap between Bitcoin and other currencies could continueethereum icon gain bitcoin Now you know how blockchains and crypto mining work. Next, I’ll tell you how you can join a cryptocurrency network…bitcoin usd 6. Peer-to-peer gambling. Any number of peer-to-peer gambling protocols, such as Frank Stajano and Richard Clayton's Cyberdice, can be implemented on the Ethereum blockchain. The simplest gambling protocol is actually simply a contract for difference on the next block hash, and more advanced protocols can be built up from there, creating gambling services with near-zero fees that have no ability to cheat.bitcoin top курс ethereum bitcoin fpga paypal bitcoin ethereum script
bitcoin чат bitcoin mail bitcoin pay
бонусы bitcoin
bitcoin stiller кошель bitcoin bitcoin основатель In open allocation free software projects, you propose changes you build. Non-technical managers are not there to think up spurious features, and even if such features are proposed, it’s unlikely anyone else will pick them up and build them.bitcoin aliexpress книга bitcoin
прогнозы ethereum bitcoin проверка подарю bitcoin ethereum dag bitcoin москва bitcoin в bitcoin foundation
настройка ethereum
casinos bitcoin ethereum пулы ethereum статистика monero transaction bistler bitcoin кошелек ethereum ethereum io bitcoin cgminer locate bitcoin bitcoin оборот bitcoin strategy monero хардфорк запрет bitcoin hardware bitcoin bitcoin nvidia bitcoin mining
купить tether bitcoin форк
bitcoin ваучер deep bitcoin bitcoin passphrase bitcoin сложность ethereum перспективы invest bitcoin торговать bitcoin txid bitcoin
rigname ethereum bitcoin knots bitcoin вики сложность monero bitcoin plugin
bitcoin заработок Another difference between Bitcoin and Litecoin is the hashing algorithm each uses to solve a block and how many coins are distributed each time a solution is found. When a transaction is made, it is grouped with others that were recently submitted within a cryptographically protected block.grayscale bitcoin bitcoin world coingecko ethereum bistler bitcoin cryptocurrency capitalisation shot bitcoin pokerstars bitcoin korbit bitcoin ethereum алгоритмы sec bitcoin ethereum blockchain bitcoin otc ethereum статистика китай bitcoin georgia bitcoin bitcoin save bitcoin видеокарты раздача bitcoin bitcoin котировки cubits bitcoin bitcoin local abc bitcoin bitcoin talk краны bitcoin coffee bitcoin
обменники bitcoin bitcoin курс bitcoin wm
bitcoin trinity earn bitcoin polkadot cadaver dark bitcoin майнить monero курс bitcoin
999 bitcoin habrahabr bitcoin miner monero
parity ethereum bitcoin reserve
настройка bitcoin сбор bitcoin roboforex bitcoin Mobile onlycpp ethereum кошелька ethereum
ethereum майнить rx580 monero торги bitcoin bitcoin direct
покер bitcoin
ethereum github ethereum raiden
bitcoin это bitcoin land bitcoin wiki
bitcoin investing ethereum ico cryptocurrency bitcoin bitcoin trust bitcoin motherboard monero вывод trade cryptocurrency ethereum видеокарты bitcoin zona tether 2 bitcoin scripting bitcoin habr
monero прогноз tether coin bitcoin motherboard bitcoin rate sec bitcoin bitcoin greenaddress картинки bitcoin dog bitcoin bitcoin сборщик bitcoin китай 1 ethereum dance bitcoin проверка bitcoin monero купить bitcoin stock bitcoin token bitcoin хабрахабр happy bitcoin bitcoin ukraine abi ethereum tether usd пожертвование bitcoin котировки ethereum bitcoin москва machine bitcoin box bitcoin
best cryptocurrency
ecdsa bitcoin invest bitcoin биржи bitcoin
bitcoin alliance mac bitcoin r bitcoin криптовалют ethereum
keystore ethereum
1080 ethereum ethereum news часы bitcoin battle bitcoin bitcoin store monero address bitcoin genesis казино ethereum buy ethereum dwarfpool monero
статистика ethereum master bitcoin bitcoin sec payable ethereum bitcoin курс carding bitcoin collector bitcoin bitcoin euro free bitcoin cubits bitcoin ethereum бесплатно ethereum alliance billionaire bitcoin торрент bitcoin bitcoin flapper миллионер bitcoin bitcoin войти live bitcoin bitcoin депозит обменники bitcoin generator bitcoin bitcoin hosting Ключевое слово
telegram bitcoin статистика ethereum
bitcoin withdraw half bitcoin bitcoin location exchange cryptocurrency poloniex ethereum 1015: finneybitcoin purse bitcoin usa difficulty ethereum bitcoin stellar bitcoin алматы bitcoin пул bitcoin get ethereum news market bitcoin обменять ethereum bitcoin lottery знак bitcoin bitcoin видеокарты платформа bitcoin
ethereum php
ethereum ios
история ethereum bitcoin arbitrage nonce bitcoin
теханализ bitcoin bitcoin venezuela сайты bitcoin bitcoin roll dwarfpool monero bitcoin приложения bitcoin банк status bitcoin bitcoin онлайн bitcoin зарегистрироваться bitcoin euro
bitcoin добыть weather bitcoin payoneer bitcoin проекта ethereum
torrent bitcoin ethereum продать 1 monero
node bitcoin monero xmr bcc bitcoin ethereum twitter monero fr conference bitcoin ethereum wikipedia bitcoin network ethereum купить secp256k1 bitcoin bitcoin masters bitcoin data bitcoin оборот trade cryptocurrency
технология bitcoin At its most basic, a blockchain is a list of transactions that anyone can view and verify. The Bitcoin blockchain, for example, is a record of every time someone sends or receives bitcoin. This list of transactions is fundamental for most cryptocurrencies because it enables secure payments to be made between people who don’t know each other without having to go through a third-party verifier like a bank.Permissioned ledgersbitcoin сайт tera bitcoin bitcoin биржи bitcoin wm adbc bitcoin bitcoin hype forecast bitcoin bitcoin скачать bitcoin бонус bitcoin go bitcoin команды
bitcoin автомат bitcoin принцип bitcoin алгоритм создать bitcoin mine monero скачать bitcoin
wechat bitcoin bitcoin продать
кошелек ethereum bitcoin x часы bitcoin truffle ethereum запуск bitcoin dwarfpool monero технология bitcoin
bitcoin demo bitcoin бонусы взлом bitcoin bitcoin rpg boom bitcoin bitcoin отследить bitcoin шахты ethereum ротаторы On the other hand, technologists –- nerds — are transfixed by it. They see within it enormous potential and spend their nights and weekends tinkering with it.bitcoin бесплатные bitcoin ru clame bitcoin приват24 bitcoin monster bitcoin
обвал ethereum wiki ethereum
maining bitcoin bitcoin зебра bitcoin окупаемость bitfenix bitcoin stake bitcoin рейтинг bitcoin bitcoin shops monero gpu 2016 bitcoin abi ethereum game bitcoin decred ethereum 2021 Bitcoin Price Predictions: Is The Massive Bitcoin Bull Run About To Peak?ethereum calc робот bitcoin de bitcoin котировка bitcoin bitcoin de wechat bitcoin майнинг monero blacktrail bitcoin хайпы bitcoin
forbot bitcoin bitcoin express arbitrage bitcoin bitcoin графики
курс tether ethereum tokens wmz bitcoin bitcoin qazanmaq monero bitcointalk лотерея bitcoin
bitcoin payment wallpaper bitcoin multi bitcoin bitcoin обмен accepts bitcoin перспективы bitcoin bitcoin sphere bitcoin microsoft jax bitcoin
playstation bitcoin bitcoin genesis
monero вывод кости bitcoin free bitcoin 50000 bitcoin bitcoin tracker bitcoin алматы monero dwarfpool bitcoin rt casinos bitcoin create bitcoin ethereum game tether usb bot bitcoin
mindgate bitcoin
bitcoin dogecoin cryptocurrency wikipedia bitcoin ann bitcoin стоимость alpari bitcoin автокран bitcoin
ethereum claymore monero gpu bitcoin stealer bitcoin goldmine
bitcoin js
mastercard bitcoin ethereum история hd7850 monero nicehash ethereum разделение ethereum ethereum blockchain tether обменник bitcoin parser bitcoin flapper minergate ethereum hit bitcoin ethereum контракты ethereum пул bitcoin history ethereum forks bitcoin bloomberg best bitcoin bitcoin проект алгоритмы bitcoin web3 ethereum hashrate bitcoin зарабатывать bitcoin купить monero bitcoin биржа mooning bitcoin otc bitcoin 50 bitcoin hacking bitcoin вложения bitcoin bitcoin qiwi