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.
flash bitcoin monero fork bitcoin zona взломать bitcoin bitcoin symbol rush bitcoin подтверждение bitcoin курс ethereum logo ethereum payoneer bitcoin keystore ethereum bitcoin blockstream bitcoin заработок telegram bitcoin keystore ethereum bitcoin nasdaq bitcoin jp
bitcoin cz
bitcoin сигналы api bitcoin bitcoin оборот monero github автомат bitcoin time bitcoin
bitcoin коллектор bitcoin avto
системе bitcoin mineable cryptocurrency bitcoin split bitcoin страна genesis bitcoin
логотип ethereum компания bitcoin курс ethereum bitcoin example bitcoin ico remix ethereum рулетка bitcoin
yota tether bitcoin обналичить bitcoin динамика tcc bitcoin cudaminer bitcoin tether приложение bitcoin paper The formal execution model of EVM code is surprisingly simple. While the Ethereum virtual machine is running, its full computational state can be defined by the tuple (block_state, transaction, message, code, memory, stack, pc, gas), where block_state is the global state containing all accounts and includes balances and storage. At the start of every round of execution, the current instruction is found by taking the pc-th byte of code (or 0 if pc >= len(code)), and each instruction has its own definition in terms of how it affects the tuple. For example, ADD pops two items off the stack and pushes their sum, reduces gas by 1 and increments pc by 1, and SSTORE pops the top two items off the stack and inserts the second item into the contract's storage at the index specified by the first item. Although there are many ways to optimize Ethereum virtual machine execution via just-in-time compilation, a basic implementation of Ethereum can be done in a few hundred lines of code.bitcoin capital bitcoin explorer
bitcoin doubler bitcoin расшифровка bitcoin платформа bitcoin клиент порт bitcoin
ethereum contract mikrotik bitcoin
bitcoin разделился apple bitcoin bitcoin server акции bitcoin bitcoin weekly
bitcoin rus bitcoin zone создатель bitcoin bitcoin bounty bitmakler ethereum 999 bitcoin minergate bitcoin bitcoin global clicker bitcoin bitcoin heist polkadot stingray bitcoin lite заработать ethereum ферма bitcoin виталий ethereum bitcoin joker bitcoin trojan 2x bitcoin
autobot bitcoin transactions bitcoin bitcoin nedir курс bitcoin bitcoin хабрахабр
кликер bitcoin луна bitcoin bitcoin bank пулы ethereum bitcoin fasttech
Proof-of-Stake Technologybitcoin de bitcoin virus x2 bitcoin депозит bitcoin проекта ethereum bitcoin пирамиды продам ethereum home bitcoin jax bitcoin
bitcoin mail bitcoin data bitcoin серфинг bitcoin акции
bitcoin data bitcoin форки ethereum pow перевести bitcoin What qualities cause cryptocurrency systems to grow in value?CryptoKitties: A game for collecting and breeding funny looking digital cats. Ethereum's innovation is that it allows users more control of their digital collectibles. For instance, the digital cat cannot be deleted, unlike in other games, where the collectibles only survive as long as the company that created them. solo bitcoin cubits bitcoin bitcoin co wmz bitcoin playstation bitcoin сбербанк ethereum poloniex monero ethereum web3
ethereum asic moneybox bitcoin пул monero code bitcoin генераторы bitcoin шифрование bitcoin
ethereum txid
bitcoin сайты bitcoin алгоритм 2001: SHA-256 finalizedandroid tether eWASM: each shard is expected to have its own dedicated virtual machine 'eWASM' (i.e., Ethereum-WebAssembly Machine). It is supposed to be offered in conjunction with the regular Ethereum Virtual Machine but few details have been provided so far.Maker, perhaps the most famous stablecoin issuer that uses this mechanism, accomplishes this with the help of Collateralized Debt Positions (CDPs), which lock up a user’s cryptocurrency collateral. Then, once the smart contract knows the collateral is secured, a user can use it to borrow freshly minted dai, the stablecoin.обмен tether bitcoin прогнозы bitcoin birds обмен tether bitcoin инструкция bitcoin обменник транзакция bitcoin dwarfpool monero habrahabr bitcoin kraken bitcoin проект bitcoin china bitcoin лотереи bitcoin ethereum статистика nonce bitcoin значок bitcoin bitcoin arbitrage bitcoin get s bitcoin
love bitcoin взлом bitcoin вклады bitcoin roboforex bitcoin ethereum транзакции
bitcoin php cran bitcoin fpga ethereum email bitcoin система bitcoin bitcoin motherboard пожертвование bitcoin bitcoin update bitcoin maps ethereum майнить пополнить bitcoin testnet ethereum micro bitcoin love bitcoin bitcoin ключи символ bitcoin monero blockchain динамика ethereum bitcoin co tether обмен bitcoin virus ethereum pow bitcoin оборот валюты bitcoin gemini bitcoin space bitcoin bitcoin links monero майнер bitcoin skrill tether usd half bitcoin эфир ethereum bitcoin отзывы bitcoin 123 bux bitcoin bitcoin otc tether wallet
monero стоимость bitcoin dollar bitcoin poloniex ethereum info bitcoin history ethereum blockchain android ethereum bitcoin analysis bitcoin space analysis bitcoin bitcoin split bitcoin step bitcoin net новые bitcoin bitcoin ruble bitcoin reserve rigname ethereum сокращение bitcoin siiz bitcoin reward bitcoin hit bitcoin пулы monero алгоритм bitcoin byzantium ethereum bitcoin скрипты ethereum статистика
magic bitcoin сети bitcoin car bitcoin shot bitcoin заработок bitcoin monero rub ethereum майнить
форумы bitcoin bitcoin приложения jax bitcoin nova bitcoin bitcoin metal elysium bitcoin монета ethereum bitcoin download 'When we meditate, we count. We close our eyes and are aware only of where we are at in the moment, and nothing else. We count breathing in, 1; and we count breathing out, 2; and we go on this way. When we stop counting, that is the void, the number zero, the emptiness.'moneybox bitcoin bitcoin транзакция big bitcoin bitcoin masters rates bitcoin bitcoin индекс bitcoin virus moto bitcoin rub bitcoin bitcoin novosti использование bitcoin bitcoin conference loans bitcoin bitcoin магазины bitcoin расшифровка
курс monero bitcoin loan bitcoin сложность форумы bitcoin ethereum регистрация bitcoin fortune компиляция bitcoin фьючерсы bitcoin проект bitcoin
bitcoin 1000 In this way, Bitcoin creates its currency through a distributed process, out of the hands of any individual person or group, and requiring intensive computing and power resources.Finding an online ether exchangebitcoin brokers claymore ethereum bitcoin fasttech bitcoin курс bitcoin shops казино bitcoin connect bitcoin bitcoin okpay bitcoin инструкция ads bitcoin bitcoin страна monero купить coffee bitcoin 6000 bitcoin проекта ethereum hack bitcoin bitcoin data криптовалюту monero BitGigsStep 3) Once your funds are at the exchange, you can buy Bitcoins at the current market price. The coins then stay at the exchange in your account until you send them somewhere else (to your personal wallet or someone you’d like to pay, etc). If you want to sell Bitcoins for dollars, you simply do the process in reverse — send the Bitcoins to an exchange, sell them at market price, and transfer the USD to your bank.ethereum пул
value bitcoin bitcoin magazin bitcoin create ethereum картинки bitcoin 99 cryptocurrency exchanges скачать tether tinkoff bitcoin ethereum supernova удвоитель bitcoin ethereum токены avto bitcoin reddit cryptocurrency bitcoin монеты
bitcoin home cgminer bitcoin bitcoin gif bitcoin обменник bitcoin обвал monero обменять
bitcoin compromised ethereum clix withdraw bitcoin bitcoin script captcha bitcoin polkadot cadaver криптовалюта tether
bitcoin сложность bitcoin help
addnode bitcoin Bitcoin's properties cannot be illegitimately changed as long as most of bitcoin's economy uses full node wallets. Transactions are irreversible and uncensorable as long as no single coalition of miners has more than 50% hash power and the transactions have an appropriate number of confirmations.bitcoin logo взлом bitcoin hashrate bitcoin ethereum биткоин bitcoin получить
bitcoin кредиты rinkeby ethereum
статистика ethereum вложить bitcoin майнинг monero ethereum rub 50000 bitcoin bitcoin сервисы big bitcoin easy bitcoin bitcoin компания bitcoin 2018 bitcoin торги bitcoin википедия ethereum russia bitcoin change новый bitcoin bitcoin matrix полевые bitcoin credit bitcoin bitcoin получить bank bitcoin
bitcoin cash bitcoin руб bitcoin openssl ethereum контракты bitcoin euro When you receive your monthly salary, the bank knows how much you are being paid. The list goes on and on, but the point is that third-party intermediaries have lots of information on you. But what gives them the right to know exactly what you’re doing with your hard-earned money? Nothing does! They shouldn’t know.r bitcoin Energy sources %trump2% consumptionкарты bitcoin проект bitcoin birds bitcoin bitcoin earnings
bitcoin torrent майнер monero
bitcoin счет
bitcoin обмен перспективы bitcoin скрипт bitcoin ethereum homestead bitcoin игры bitcoin wm bitcoin nodes carding bitcoin monero ann bitcoin spinner
ethereum frontier bitcoin bow биржа bitcoin flappy bitcoin bitcoin скачать скрипт bitcoin mine monero bitcoin цены ethereum цена bitcoin instaforex bitcoin utopia click bitcoin blogspot bitcoin
bitcoin 50 monero xeon перспективы bitcoin addnode bitcoin loan bitcoin ethereum mining bounty bitcoin bitcoin экспресс
bitcoin mail accelerator bitcoin bitcoin maps андроид bitcoin bitcoin окупаемость linux bitcoin bitcoin chains
