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 начало bitcoin stock куплю bitcoin monero ico bitcoin virus bitcoin stock monero pro bitcoin роботы bitcoin golang pool bitcoin q bitcoin аналитика ethereum ethereum mining cryptocurrency gold будущее ethereum ethereum пул получение bitcoin loan bitcoin bitcoin doge bitcoin forex forbot bitcoin boxbit bitcoin bitcoin euro nicehash bitcoin карты bitcoin bitcoin server hourly bitcoin часы bitcoin bitcoin wallpaper рубли bitcoin bistler bitcoin bitcoin net bitcoin картинка solidity ethereum delphi bitcoin Hash Rate: How powerful your hardware is.ios bitcoin wifi tether bitcoin click bitcoin покупка super bitcoin monero ann bitcoin get bitcoin etf 1 monero bitcoin traffic service bitcoin использование bitcoin bitcoin fan poloniex monero bitcoin goldmine electrum ethereum bitcoin click case bitcoin android tether mt4 bitcoin gui monero calculator cryptocurrency ethereum заработок рубли bitcoin ethereum rig ethereum windows
space bitcoin
accelerator bitcoin ethereum кошельки ethereum обменять создатель bitcoin film bitcoin pay bitcoin технология bitcoin bitcoin stock bitcoin инструкция
ecdsa bitcoin 60 bitcoin tether программа tether скачать tether верификация tether usd bitcoin click
альпари bitcoin алгоритм monero bitcoin options hash bitcoin calculator ethereum linux bitcoin bitcoin purchase ethereum кошельки обсуждение bitcoin стоимость bitcoin приложение tether bitcoin loto monero купить китай bitcoin bitcoin kazanma автоматический bitcoin
tether пополнение
captcha bitcoin ico cryptocurrency пулы bitcoin bitcoin index
скрипт bitcoin ethereum доходность bitcoin widget bitcoin bitcointalk котировки ethereum bitcoin doubler bitcoin сети asics bitcoin bitcoin реклама сложность ethereum
fenix bitcoin transaction bitcoin rise cryptocurrency ethereum видеокарты ethereum обменники zebra bitcoin vector bitcoin bitcoin save cryptocurrency dash claim bitcoin bitcoin login mining ethereum p2pool bitcoin bitcoin 0 bitcoin review bitcoin reddit
statistics bitcoin store bitcoin ethereum script bitcoin hardfork пожертвование bitcoin programming bitcoin alliance bitcoin abi ethereum bitcoin betting bitcoin обменники ethereum прогноз bitcoin 0 calculator ethereum bitcoin работать bitcoin даром
капитализация ethereum ultimate bitcoin
пример bitcoin cryptocurrency charts bitcoin обсуждение bitcoin шрифт bitcoin статистика валюта tether bitcoin surf okpay bitcoin up bitcoin поиск bitcoin bitcoin мошенничество bitcoin help покупка ethereum видеокарты bitcoin
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.blue bitcoin Thus, in general, there are two approaches toward building a consensus protocol: building an independent network, and building a protocol on top of Bitcoin. The former approach, while reasonably successful in the case of applications like Namecoin, is difficult to implement; each individual implementation needs to bootstrap an independent blockchain, as well as building and testing all of the necessary state transition and networking code. Additionally, we predict that the set of applications for decentralized consensus technology will follow a power law distribution where the vast majority of applications would be too small to warrant their own blockchain, and we note that there exist large classes of decentralized applications, particularly decentralized autonomous organizations, that need to interact with each other.2018 bitcoin logo bitcoin monero free майн ethereum cpuminer monero electrum bitcoin
roll bitcoin ethereum chaindata
ethereum сегодня
продать ethereum lootool bitcoin bitcoin шахты капитализация bitcoin криптовалют ethereum проекта ethereum is bitcoin bitcoin орг
ethereum асик хардфорк ethereum книга bitcoin zcash bitcoin delphi bitcoin bitcoin plus bitcoin biz auction bitcoin bitcoin blockchain bitcoin etf bitcoin tools bitcoin ads purchase bitcoin cardano cryptocurrency
bitcoin прогнозы reverse tether зарегистрировать bitcoin monero algorithm bitcoin презентация
майн ethereum bank bitcoin monero blockchain bitcoin wordpress покер bitcoin bounty bitcoin блокчейна ethereum bitcoin magazine dwarfpool monero cpp ethereum bitcoin получить bye bitcoin shot bitcoin bitcoin explorer bitcoin 2018 биржи ethereum
токен bitcoin car bitcoin bitcoin ethereum rx560 monero mining bitcoin index bitcoin
bitcoin hunter bitcoin converter работа bitcoin miner bitcoin bitcoin media
agario bitcoin проект ethereum top bitcoin bitcoin 0
bitcoin net bitcoin china ethereum клиент bitcoin презентация bitcoin metatrader express bitcoin
api bitcoin
supernova ethereum bitcoin 2020
обмен monero cryptocurrency all bitcoin hacking bitcoin bitcoin usd
cfd bitcoin electrum bitcoin bitcoin asic bitcoin fpga account bitcoin Bluetooth integration a potential vector of cyber attack (USB is still an option)bitcoin футболка goldsday bitcoin вики bitcoin bitcoin shop cudaminer bitcoin bitcoin free
bitcoin poker bitcoin simple форумы bitcoin курсы bitcoin battle bitcoin bitcoin скрипт ethereum client bitcoin network bitcoin значок bitcoin cc bitcoin котировка rx470 monero bitcoin парад aml bitcoin bitcoin fields weekly bitcoin
gain bitcoin habrahabr bitcoin bitcoin fan antminer bitcoin bitcoin ledger сигналы bitcoin magic bitcoin monero difficulty
bitcoin лопнет ютуб bitcoin bitcoin jp bitcoin кошелька bitcoin минфин количество bitcoin bitcoin hub wallet tether bitcoin шахта алгоритм bitcoin
bitcoin flapper bitcoin продать poloniex ethereum bitcoin ios bitcoin cards bitcoin drip блок bitcoin ethereum картинки token bitcoin bitcoin 100 A hot wallet is a tool that allows a cryptocurrency owner to receive and send tokens. Unlike traditional currencies, there are no dedicated banks or physical wallets that can be used to keep cryptocurrency holdings secure. Cryptocurrency wallets are tools that are commonly used to store and protect these holdings, and they come in many different forms and varieties.cpa bitcoin
moon ethereum store bitcoin разработчик bitcoin airbit bitcoin
goldmine bitcoin btc ethereum
bitcoin статистика bitcoin win
bitcoin bcc bitcoin friday
bitcoin greenaddress ethereum bonus cryptocurrency analytics
neteller bitcoin
scrypt bitcoin asic bitcoin bitcoin casino bitcoin получение abi ethereum mining bitcoin unconfirmed bitcoin bitcoin mainer local ethereum ethereum pos bitcoin symbol plasma ethereum And this should be obvious.пример bitcoin bitcoin коллектор
testnet ethereum bitcoin neteller брокеры bitcoin monero difficulty bitcoin rotator 4000 bitcoin ethereum бутерин bitcoin wikileaks кран bitcoin go bitcoin bitcoin lottery bitcoin p2p maps bitcoin bitcoin лохотрон bitcoin converter bitcoin simple
4000 bitcoin
ethereum addresses lite bitcoin bitcoin multisig калькулятор ethereum raspberry bitcoin bitcoin краны bitcoin p2p партнерка bitcoin bitcoin advcash обзор bitcoin bitcoin продать кошельки ethereum
icon bitcoin bitcoin комиссия bitcoin mt5 card bitcoin приложение bitcoin bitcoin iso bitcoin database токен ethereum 777 bitcoin bitcoin график bitcoin hunter matteo monero обзор bitcoin ethereum core monero logo платформа bitcoin wikileaks bitcoin solidity ethereum up bitcoin Scalabilityfx bitcoin
bitcoin 2020
ethereum курсы testnet ethereum q bitcoin bitcoin casascius plus500 bitcoin полевые bitcoin
ферма bitcoin bitcoin evolution bitcoin price купить ethereum обменять bitcoin криптовалюту monero bye bitcoin poloniex monero акции bitcoin The votes are counted with high accuracy by the officials knowing that each ID can be attributed to just one voteopencart bitcoin
ethereum картинки
bitcoin explorer кошельки ethereum tether скачать bitcoin loan
blitz bitcoin
Specifically talking about Litecoin, let's dive in and look at what it is, how it's different than other currencies, and the most important question of all: how to invest in Litecoin. Before you get started with Litecoin, you need a digital wallet. We recommend using Coinbase, which we will discuss a bit more below.bitcoin neteller bitcoin валюты bitcoin plugin erc20 ethereum bitcoin баланс bitcoin atm cryptocurrency ethereum bitcoin 20 bitcoin javascript автомат bitcoin будущее bitcoin bitcoin oil bitcoin sec bitcoin qt
javascript bitcoin асик ethereum exchange ethereum bitcoin java bitcoin exchanges 999 bitcoin bitcoin сколько автомат bitcoin bitcoin конверт работа bitcoin bitcoin проблемы bitcoin roll payoneer bitcoin bitcoin steam bitcoin alliance
bitcoin convert moto bitcoin bitcoin аккаунт abc bitcoin monero btc mine ethereum masternode bitcoin bitcoin info
история ethereum tether limited
doge bitcoin de bitcoin bitcoin trend bitcoin vpn bitcoin central торговать bitcoin ethereum stats free bitcoin bitcoin anonymous bitcoin википедия doge bitcoin wallet cryptocurrency bitcoin pools game bitcoin статистика ethereum
hashrate bitcoin bitcoin crush bitcoin криптовалюту bitcoin transaction bitcoin google bitcoin token 33 bitcoin
bitcoin блок bitcoin оборот bitcoin sha256 курс ethereum alpha bitcoin options bitcoin vk bitcoin withdraw bitcoin ethereum casper monero bitcointalk ферма bitcoin sha256 bitcoin plasma ethereum
monero калькулятор circle bitcoin eos cryptocurrency ethereum получить сайте bitcoin ethereum обмен electrum bitcoin
ethereum wikipedia ethereum addresses bitcoin flip tether clockworkmod amd bitcoin simplewallet monero bitcoin fund bitcoin рухнул конференция bitcoin bitcoin bbc blogspot bitcoin bitcoin это faucet cryptocurrency captcha bitcoin ethereum ротаторы ethereum studio nvidia monero
chaindata ethereum bitcoin добыть bitcoin bloomberg difficulty ethereum bitcoin tm ethereum падение monero ico bitcoin транзакция монеты bitcoin китай bitcoin ethereum btc bitcoin weekly cryptocurrency dash bitcoin compare bitcoin legal epay bitcoin bitcoin 9000 data bitcoin
bitcoin usa etf bitcoin ethereum blocks bitcoin
auction bitcoin forecast bitcoin swarm ethereum