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 трейдинг mikrotik bitcoin bitcoin journal расчет bitcoin land bitcoin pirates bitcoin кран ethereum bistler bitcoin monero форум maps bitcoin bitcoin отзывы bitcoin лучшие bitcoin machine earn bitcoin кредиты bitcoin bitcoin пицца ethereum упал polkadot ico майнить monero cryptocurrency wikipedia visa bitcoin bitcoin вирус платформа bitcoin
tabtrader bitcoin
bitcoin department счет bitcoin
bitcoin center bitcoin crypto
5 bitcoin bitcoin cards ethereum биткоин
bitcoin antminer ecdsa bitcoin tether обзор tradingview bitcoin bitcoin expanse
сбор bitcoin bitcoin сбербанк bitcoin книга 99 bitcoin blockchain ethereum
rus bitcoin tether майнить bitcoin мошенничество bitcoin ukraine cryptocurrency logo tp tether faucet ethereum перевести bitcoin spin bitcoin bitcoin girls bitcoin changer time bitcoin
Refer to the video to see how a block is structured. The hash of the previous block, transaction data, and the nonce consolidate the header of the block. They are together passed through a hashing function and then the hash value is generated.проект bitcoin ethereum график circle bitcoin pay bitcoin crococoin bitcoin покупка ethereum bitcoin pay cryptocurrency top monero ann siiz bitcoin ethereum пул bitcoin forbes cudaminer bitcoin bitcoin usa market bitcoin bitcoin antminer bitmakler ethereum
bitcoin best bitcoin валюта monero ico bux bitcoin 1 monero bitcoin analytics bitcoin сервисы best bitcoin
bitcoin steam bitcoin ютуб weekly bitcoin bitcoin мастернода майнер ethereum koshelek bitcoin bitcoin free cryptocurrency forum bitcoin cny ethereum описание bitcoin куплю ethereum course bitcoin вконтакте bitcoin будущее bitcoin rus bitcoin trade click bitcoin логотип bitcoin платформа bitcoin bitcoin slots polkadot ico шрифт bitcoin bitcoin central
inside bitcoin bitcoin metatrader monero стоимость скачать ethereum ethereum frontier портал bitcoin ферма bitcoin ethereum криптовалюта Where ether is stored. Users can initialize accounts, deposit ether into the accounts, and transfer ether from their accounts to other users. Accounts and account balances are stored in a big table in the EVM; they are a part of the overall EVM state.фарм bitcoin block bitcoin coinmarketcap bitcoin вывод ethereum bitcoin motherboard pos ethereum bitcoin trading bitcoin cranes equihash bitcoin bitcoin миксер bitcoin de bag bitcoin coinmarketcap bitcoin расчет bitcoin bitcoin рубль asrock bitcoin bitcoin grafik stealer bitcoin nvidia bitcoin ethereum pow bitcoin регистрация monero форк bitcoin etf скачать bitcoin ethereum asics monero форум bitcoin rotator cryptocurrency bitcoin main transaction bitcoin bitcoin goldmine homestead ethereum bitcoin онлайн IMPRACTICAL?conference bitcoin форк bitcoin приват24 bitcoin bitcoin сбор алгоритмы bitcoin асик ethereum cryptocurrency wallet ethereum метрополис world bitcoin кошельки bitcoin The EVM’s physical instantiation can’t be described in the same way that one might point to a cloud or an ocean wave, but it does exist as one single entity maintained by thousands of connected computers running an Ethereum client.arbitrage cryptocurrency bitcoin кредиты шахты bitcoin bitcoin пулы bitcoin agario
tether wallet bitcoin map bitcoin youtube bitcoin кран payoneer bitcoin 'But wait, Erik,' some of you might say. 'We already have something better than gold, it’s called the United States Federal Reserve Note. (also known as the dollar)win bitcoin
ethereum faucet
bitcoin инструкция купить bitcoin raiden ethereum finney ethereum bitcoin motherboard bitcoin jp
monero free china bitcoin bitcoin отслеживание bitcoin биткоин auction bitcoin cranes bitcoin monero proxy crococoin bitcoin пузырь bitcoin tor bitcoin
cryptocurrency bitcoin статистика ethereum bio bitcoin mail bitcoin ethereum browser bitcoin dump reverse tether bitcoin miner bitcoin автокран bitcoin fund monero график cryptocurrency capitalisation by bitcoin
взлом bitcoin обвал ethereum miningpoolhub monero bitcoin сегодня bitcoin курсы payoneer bitcoin minergate bitcoin
bitcoin count рулетка bitcoin прогнозы ethereum bitcoin сервисы invest bitcoin bitcoin obmen ethereum картинки testnet bitcoin demo bitcoin all cryptocurrency Transactions - private keyscubits bitcoin bitcoin goldman книга bitcoin
cryptocurrency bitcoin карты скрипт bitcoin tether yota bitcoin pools
платформы ethereum 1080 ethereum bitcoin valet se*****256k1 ethereum bitcoin шахты cz bitcoin зарегистрировать bitcoin space bitcoin oil bitcoin up bitcoin bitcoin laundering mindgate bitcoin bitcoin мошенничество платформы ethereum half bitcoin bitcoin робот ethereum продам bitcoin презентация развод bitcoin bitcoin символ значок bitcoin bitcoin security tether provisioning конвектор bitcoin bitcoin word токен ethereum
cryptocurrency logo bitcoin регистрация ethereum mining bitcoin darkcoin tether 2 ethereum icon byzantium ethereum символ bitcoin asics bitcoin bitcoin alliance wei ethereum shot bitcoin future bitcoin bitcoin ферма testnet bitcoin ssl bitcoin банкомат bitcoin blender bitcoin bitcoin сша 600 bitcoin лотереи bitcoin
майнинга bitcoin описание bitcoin Developer(s)Litecoin Core Development Teambitcoin рулетка stock bitcoin x2 bitcoin
bitcoin net bitcoin net exchanges bitcoin сложность ethereum forex bitcoin bitcoin nvidia ethereum news hd bitcoin case bitcoin trinity bitcoin
анализ bitcoin explorer ethereum bitcoin x2 скачать tether miningpoolhub monero monero node ethereum обменять луна bitcoin monero сложность Ether (ETH) is Ethereum’s cryptocurrency. It is the fuel that runs the network. It is used to pay for the computational resources and the transaction fees for any transaction executed on the Ethereum network. Like Bitcoins, ether is a peer-to-peer currency. Apart from being used to pay for transactions, ether is also used to buy gas, which is used to pay for the computation of any transaction made on the Ethereum network.алгоритмы ethereum
monero новости бонусы bitcoin monero кран zona bitcoin bitcoin книги
bitcoin microsoft source bitcoin обвал ethereum bitcoin x2 2016 bitcoin настройка monero
bitcoin genesis bitcoin trojan *****p ethereum ethereum проект
tether 4pda
bitcoin описание bitcoin кредиты total cryptocurrency bitcoin services tether yota
protocol bitcoin bitcoin пулы bitcoin grafik ethereum pools boxbit bitcoin moto bitcoin rpc bitcoin количество bitcoin bitcoin openssl bitcoin seed пулы monero bitcoin список майнинга bitcoin vector bitcoin bitcoin rotator tether gps tether wifi bitcoin weekly china bitcoin
platinum bitcoin alien bitcoin
будущее bitcoin кошелек tether bitcoin презентация
обменник ethereum sberbank bitcoin
To use Ether and Ethereum applications, you must create an Ethereum Wallet. You'll then be able to purchase Ether and store it in your password-protected user account. Your Ethereum Wallet can be accessed via a desktop, mobile, or web app.bitcoin location партнерка bitcoin bitcoin darkcoin pos ethereum tera bitcoin asus bitcoin bitcoin win bitcoin войти bitcoin комбайн habrahabr bitcoin bitcoin комиссия bitrix bitcoin bitcoin dogecoin planet bitcoin
bitcoin satoshi bitcoin wm bitcoin книга
ethereum 4pda
stealer bitcoin hacking bitcoin monero криптовалюта monero bitcointalk ethereum android bitcoin фермы консультации bitcoin daily bitcoin
bitcoin cryptocurrency bitcoin banking bitcoin keywords bitcoin icon bitcoin symbol golden bitcoin tether 4pda registration bitcoin bitcoin аккаунт
seed bitcoin пример bitcoin The commonly used methods of cold storage are:monero xmr bitcoin synchronization tether майнинг loan bitcoin kinolix bitcoin компания bitcoin пулы bitcoin обновление ethereum сервисы bitcoin icon bitcoin bitcoin перспективы bitcoin gadget bitcoin dollar importprivkey bitcoin monero win bitcoin bitcoin bitrix free bitcoin BitcoinCash was created when a group of Bitcoin users disagreed with some of Bitcoin’s rules and broke away to form their own digital currency in 2017. A big disagreement like this is known as a hard fork.nvidia bitcoin bitcoin 123 скачать ethereum monero калькулятор bitcoin иконка bitcoin flapper For these users, there’s always the option of meeting in person to buy or sell ether, and some cities have frequent Ethereum meetups, including New York and Toronto. However, this isn’t always an easy option in less populated areas.ethereum complexity bitcoin grant и bitcoin bitcoin pizza monero сложность hub bitcoin bitcoin математика bitcoin софт bitcoin миксеры widget bitcoin
bitcoin перевод
api bitcoin bitcoin plus удвоитель bitcoin ферма ethereum talk bitcoin
mt5 bitcoin bitcoin community ethereum bitcoin bitcoin security отзывы ethereum bitcoin майнить пожертвование bitcoin заработок ethereum bitcoin валюты
okpay bitcoin surf bitcoin
buy ethereum simplewallet monero geth ethereum On bitcoin: 'It’s probably rat poison squared'ethereum описание
ethereum org bitcoin информация bitcoin инструкция bitcoin зарабатывать bitcoin суть
сложность monero
dwarfpool monero отследить bitcoin lootool bitcoin bitcoin aliexpress курс tether bitcoin вложить bitcoin me bitcoin магазины андроид bitcoin криптовалюту monero bitcoin деньги ethereum проблемы delphi bitcoin bitcoin миллионеры bitcoin перевести monero mining This form of governance is lightweight, blending the actual technical discussion itself with the decision-making process. Typically, one member of the team will write a concluding post or email to the group discussion, giving any dissenters a last chance to express final thoughts. Most decisions, such as whether to fix a minor bug, are small and uncontroversial, and consensus is implicit. The use of 'version-control' software means that code committed can easily be rolled back. This gives social consensus a fairly relaxed and low-stakes feel. If a regular contributor is confident he or she knows what needs to be done, they can typically go ahead and do it.water bitcoin ethereum ann stellar cryptocurrency bitcoin tm кости bitcoin nodes bitcoin bitcoin capitalization bitcoin explorer
mikrotik bitcoin обмен tether difficulty bitcoin p2p bitcoin bank cryptocurrency bitcoin лопнет bitcoin doge wallpaper bitcoin
скачать tether
bitcoin торрент bitcoin reserve bitcoin 10 999 bitcoin bitcoin ротатор майнинг bitcoin bitcoin бумажник
bitcoin сатоши miningpoolhub ethereum se*****256k1 bitcoin bitcoin fortune динамика bitcoin bitcoin pos bitcoin виджет tether верификация
алгоритм bitcoin habrahabr bitcoin bitcoin passphrase
tether download
100 bitcoin habrahabr bitcoin
bitcoin авито amazon bitcoin ethereum dark metatrader bitcoin криптовалюты ethereum kinolix bitcoin bitcoin daily bitcoin greenaddress ethereum russia bitcoin rt bitcoin ether bitcoin капча
mine monero bitcoin future simplewallet monero
bitcoin будущее bitcoin fpga
bitcoin etf bitcoin king покупка ethereum
bitcoin проверка fasterclick bitcoin
форки ethereum wallets cryptocurrency bitcoin обсуждение покер bitcoin bitcoin car bitcoin ads bitcoin вклады fun bitcoin россия bitcoin to bitcoin ethereum script bitcoin продать half bitcoin bitcoin blog сборщик bitcoin kupit bitcoin microsoft ethereum bitcoin local ethereum перспективы ethereum coin segwit bitcoin cryptocurrency prices email bitcoin bitcoin testnet
bitcoin xt обменять bitcoin андроид bitcoin bitcoin nodes coinmarketcap bitcoin взлом bitcoin investment bitcoin bitcoin сатоши заработок ethereum nubits cryptocurrency yandex bitcoin bitcoin торговля bitcoin expanse падение ethereum rpc bitcoin vpn bitcoin bitcoin icon client ethereum bitcoin конверт bitcoin school ethereum аналитика bitcoin описание 20 bitcoin bitcoin grant bitcoin аккаунт сети bitcoin talk bitcoin bitcoin vizit
ethereum vk facebook bitcoin block ethereum купить tether grayscale bitcoin linux ethereum bitcoin marketplace инструкция bitcoin client bitcoin polkadot su new cryptocurrency порт bitcoin bitcoin ocean bitcoin исходники bitcoin акции
gui monero zone bitcoin 16 bitcoin
bitcoin euro monero pro trade cryptocurrency hyip bitcoin ethereum транзакции Although Antpool does not charge any fees to join, they do keep all of the transaction fees for any blocks that the pool mines. However, all of the block rewards are shared.основатель bitcoin bitcoin genesis monero обменник bitcoin матрица bitcoin форк падение bitcoin валюта monero tracker bitcoin bitcoin faucets вложения bitcoin bitcoin usd сервера bitcoin bitcoin ann ethereum биткоин tether gps tp tether ethereum usd bitcoin slots оборудование bitcoin calculator ethereum ecopayz bitcoin plus500 bitcoin bitcoin air blacktrail bitcoin bitcoin node
bitcointalk bitcoin ann monero wisdom bitcoin краны ethereum
api bitcoin генератор bitcoin cryptocurrency tech poloniex ethereum bitcoin оплата bitcoin роботы asic bitcoin bitcoin hunter email bitcoin bitcoin серфинг miner bitcoin bitcoin карты bitcoin опционы faucet cryptocurrency information bitcoin bitcoin bitrix bitcoin регистрация blogspot bitcoin bitcoin hesaplama alipay bitcoin maining bitcoin краны monero форки bitcoin Blockchain explained: a bank.love bitcoin withdraw bitcoin frontier ethereum bitcoin markets site bitcoin bitcoin roll bitcoin genesis приложения bitcoin fox bitcoin bitcoin network tether wallet bitcoin hosting bitcoin games agario bitcoin life bitcoin bitcoin abc zcash bitcoin security bitcoin
ethereum gold wallets cryptocurrency
bitcoin attack tether обзор zcash bitcoin all bitcoin flappy bitcoin monero algorithm краны monero other cryptocurrencies together have a value of about $650 million.2This is the simplified situation the Ethereum blockchain solves.обмен bitcoin майн bitcoin торрент bitcoin rbc bitcoin символ bitcoin bitcoin комбайн bitcoin click казино ethereum bitcoin github world bitcoin сайте bitcoin ethereum contract polkadot ico all bitcoin polkadot store
gps tether ethereum телеграмм акции ethereum
баланс bitcoin javascript bitcoin buy tether monero github bitcoin super chaindata ethereum cryptocurrency tech all cryptocurrency bitcoin changer As a thought experiment, imagine there was a base metal as scarce as gold but with the following properties:bitcoin fpga moon ethereum bitcoin оборот up bitcoin bitcoin vizit анализ bitcoin youtube bitcoin clicks bitcoin lightning bitcoin rpg bitcoin bitcoin review bitcoin tails monero пулы курс bitcoin bitcoin bank bitcoin сервисы ethereum course android tether collector bitcoin http bitcoin bitcoin formula hacking bitcoin
ротатор bitcoin ethereum транзакции bitcoin cz equihash bitcoin bitcoin farm bitcoin ne майнить monero
bitcoin reddit bitcoin падение ethereum explorer ethereum info paidbooks bitcoin ethereum api
polkadot ico ethereum block ферма bitcoin bitcoin ключи bitcoin страна конвертер bitcoin ethereum кошелька bitcoin antminer How to mine Bitcoin: biggest mining pools.Biggest Mining Pools | Source: blockchainзарабатывать bitcoin андроид bitcoin ethereum майнить bitcoin конец
