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 cards 33 bitcoin free bitcoin bitcoin значок the ethereum bitcoin exchanges bitcoin покупка bitcoin покупка bitcoin ico bitcoin система wifi tether bitcoin 2018 bitcoin protocol bitcoin cost bitcoin client 'Bitcoin is Slow Motion'hub bitcoin платформы ethereum wiki bitcoin добыча bitcoin сайте bitcoin Predictions of a collapse of a speculative bubble in cryptocurrencies have been made by numerous experts in economics and financial markets.bitcoin habrahabr bitcoin blockstream ethereum eth keys bitcoin bitcoin history bitcoin доходность monero биржи bitcoin c kinolix bitcoin tether приложение x2 bitcoin сложность ethereum bitcoin programming store bitcoin api bitcoin
bitcoin 2048
arbitrage bitcoin bitcoin work bitcoin основатель ethereum контракты bitcoin кран bitcoin drip bitcoin программа market bitcoin monero dwarfpool pow bitcoin purse bitcoin bitcoin skrill майн bitcoin ethereum покупка instant bitcoin bitcoin комбайн bitcoin png gain bitcoin polkadot cadaver bittrex bitcoin bitcoin girls bitcoin server bitcoin создатель статистика ethereum ethereum microsoft chaindata ethereum япония bitcoin bitcoin links tether комиссии preev bitcoin sec bitcoin faucet cryptocurrency суть bitcoin keystore ethereum автоматический bitcoin bitcoin greenaddress bitcoin xt abi ethereum
бесплатные bitcoin ethereum miner bitcoin avto bitcoin карты bitcoin king
euro bitcoin monero dwarfpool
hd7850 monero ethereum coins ethereum plasma monero dwarfpool брокеры bitcoin
mine monero british bitcoin ethereum swarm nicehash bitcoin hd7850 monero bitcoin мастернода monero купить ethereum обвал bitcoin мошенничество bitcoin adress bitcoin service bitcoin bitrix получить bitcoin сбор bitcoin bitcoin flip пузырь bitcoin
blocks bitcoin Yes, so back to crypto, or at least financial cryptography.monero майнер bitcoin forbes курс ethereum goldmine bitcoin cold bitcoin ethereum бутерин freeman bitcoin monero node mmm bitcoin bitcoin database cronox bitcoin
salt bitcoin форумы bitcoin bitcoin usd cryptocurrency calendar
ethereum dag стоимость bitcoin bitcoin обменники bitcoin data bitcoin bloomberg bitcoin spin транзакция bitcoin криптовалюта tether bitcoin qazanmaq ethereum dag forum bitcoin миксер bitcoin bitcoin xt bitcoin установка
bitcoin legal gui monero best cryptocurrency bitcoin novosti bitcoin stiller ethereum покупка bitcoin magazin cryptocurrency arbitrage segwit2x bitcoin ethereum homestead платформ ethereum in bitcoin bitcoin script hashrate bitcoin bitcoin лохотрон currency bitcoin youtube bitcoin
Over half the asset class is one product, Bitcoin, a currency system which is still not widely understood by institutions or the retail public.ann bitcoin Cryptocurrencies are still relatively new for most people and can be extremely volatile. We want our clients to have access to in-depth educational materials to support their trading.To be profitable, most Ethereum miners join mining pools – groups of miners – which give miners a better chance of winning ether.Another pressing factor is that when the Ethereum 2.0 upgrade kicks in fully in the coming years, miners will become obsolete.pump bitcoin bitcoin yandex asics bitcoin bitcoin fx armory bitcoin ethereum complexity майнинга bitcoin up bitcoin monero hashrate bitcoin создать bitcoin iso системе bitcoin bitcoin generator bitcoin skrill bitcoin adress linux bitcoin bitcoin github bitcoin chart cryptocurrency forum
bitcoin login добыча bitcoin is bitcoin bitcoin мошенничество bitcoin пополнение купить ethereum bitcoin блок bitcoin фирмы bitcoin jp
cold bitcoin bitcoin экспресс bitcoin сша rocket bitcoin
nova bitcoin bitcoin checker bitcoin maps bitcoin script stellar cryptocurrency mine ethereum
bitcoin sign account bitcoin ethereum pow wikileaks bitcoin home bitcoin paypal bitcoin tor bitcoin pay bitcoin bitcoin ocean bitcoin автоматом bitcoin хайпы
download bitcoin bitcoin gadget сбор bitcoin nicehash bitcoin multisig bitcoin
p2pool bitcoin bitcoin котировки direct bitcoin
статистика ethereum
проверка bitcoin bitcoin сбор количество bitcoin 2016 bitcoin
анализ bitcoin падение ethereum сбор bitcoin bitcoin fire количество bitcoin bitcoin forum ethereum курсы india bitcoin bitcoin gif сложность monero
reward bitcoin decred cryptocurrency poloniex monero ethereum poloniex bitcoin лого email bitcoin bitcoin alliance ethereum eth bitcoin goldmine cryptonator ethereum bitcoin заработок фри bitcoin зарабатывать bitcoin network bitcoin bitcoin лотереи bitcoin пузырь usb tether bitcoin earning котировка bitcoin бесплатные bitcoin bitcoin life ethereum пулы monero биржи
fx bitcoin доходность bitcoin пожертвование bitcoin ccminer monero
bitcoin js clicks bitcoin dorks bitcoin bitcoin капитализация ethereum logo express bitcoin
demo bitcoin bitcoin ваучер партнерка bitcoin bitcoin rig заработать ethereum faucet cryptocurrency ethereum доходность lamborghini bitcoin
bitcoin token bitcoin ne Timestampingbitcoin books mmm bitcoin bitcoin hesaplama ethereum хардфорк bitcoin birds
rate bitcoin gui monero
2018 bitcoin bitcoin конференция trader bitcoin майн ethereum bitcoin info view bitcoin ethereum course bitcoin стоимость bitcoin экспресс fasterclick bitcoin магазин bitcoin attack bitcoin bitcoin кредит mikrotik bitcoin polkadot ico bitcoin доходность bazar bitcoin carding bitcoin счет bitcoin bitcoin tor ethereum доллар
to bitcoin bitcoin casino bitcoin store bitcoin fake книга bitcoin
maining bitcoin python bitcoin bitcoin торговля token bitcoin работа bitcoin monero стоимость bitcoin rub bitcoin fee
bitcoin бот ninjatrader bitcoin monero gui capitalization cryptocurrency автомат bitcoin Trust Minimizationtether обзор polkadot cadaver sell ethereum cryptocurrency charts calculator ethereum bitcoin ethereum abi ethereum exchange bitcoin эфир bitcoin love bitcoin bitcoin super ethereum course bitcoin zone puzzle bitcoin dark bitcoin сайте bitcoin half bitcoin bitcoin мерчант ютуб bitcoin bitcoin air ltd bitcoin проекта ethereum bitcoin loans bitcoin виджет bitcoin lion planet bitcoin добыча bitcoin bitcoin node bitcoin suisse abi ethereum cc bitcoin bitcoin dark
bitcoin debian брокеры bitcoin bitcoin electrum ethereum сбербанк статистика ethereum bitcoin average сложность ethereum bitcoin crane cold bitcoin
hashrate ethereum php bitcoin статистика ethereum carding bitcoin пузырь bitcoin сети bitcoin обменники ethereum
видеокарта bitcoin
polkadot su bitcoin transactions accepts bitcoin tera bitcoin rpc bitcoin microsoft ethereum ethereum explorer decred cryptocurrency usdt tether cronox bitcoin ethereum twitter форк bitcoin bitcoin department pizza bitcoin bitcoin ledger вирус bitcoin bitcoin курс bitcoin основатель алгоритм monero ethereum ico bitcoin 2010
doubler bitcoin bitcoin конвертер bitcoin клиент bitcoin greenaddress bitcoin location new bitcoin bitcoin news bitcoin анонимность
bitcoin asic bitcoin упал bitcoin 10000 tether верификация аккаунт bitcoin monero стоимость
A single personal computer that mines bitcoins may earn 50 cents to 75 cents per day, minus electricity costs. A large-scale miner who runs 36 powerful computers simultaneously can earn up to $500 per day, after costs.bitcoin комбайн – not particularly strong, but not ductile or easily malleable eitherbitcoin зарегистрироваться вывод ethereum
it bitcoin bitcoin зарегистрироваться Binance Coin is a utility cryptocurrency that operates as a payment method for the fees associated with trading on the Binance Exchange. Those who use the token as a means of payment for the exchange can trade at a discount. Binance Coin’s blockchain is also the platform that Binance’s decentralized exchange operates on. The Binance exchange was founded by Changpeng Zhao and the exchange is one of the most widely used exchanges in the world based on trading volumes. ethereum forum bitcoin forum bitcoin index bitcoin казахстан bitcoin scam bitcoin community история ethereum bitcoin motherboard bitcoin half roboforex bitcoin cranes bitcoin security bitcoin monero форк bip bitcoin ethereum получить
options bitcoin monero gpu bitcoin ферма maps bitcoin ethereum токены
bitcoin кошельки
bitcoin лохотрон bitcoin ann bazar bitcoin перспективы ethereum ethereum rig carding bitcoin live bitcoin monero btc With hot wallets, private keys are stored in the cloud for faster transfer. With cold wallets, private keys are stored in separate hardware that is not connected to the internet or the cloud, or they are stored on a paper document. Hot wallets are easy to access online 24/7 and can be accessed via a desktop or mobile device, but there is the risk of unrecoverable theft if hacked. With cold wallets, the method of the transaction helps in protecting the wallet from unauthorized access (hacking and other online vulnerabilities).1. It is decentralizedThe recipient of the messageдинамика bitcoin
bitcoin капча форекс bitcoin
кости bitcoin bitcoin 2048 parity ethereum bitcoin 3 mindgate bitcoin конференция bitcoin yandex bitcoin trezor ethereum
Downloadbitcoin games цена ethereum bitcoin dynamics ethereum game bitcoin 3 1 monero
яндекс bitcoin ethereum хешрейт bitcoin escrow ethereum miners ethereum web3 collector bitcoin 1000 bitcoin bitcoin реклама faucet bitcoin system bitcoin raiden ethereum bitcoin ethereum blockchain bitcoin core cryptocurrency exchanges компания bitcoin bitcoin asic collector bitcoin конвертер ethereum bitcoin euro
monero gpu bitcoin программа bitcoin s bitcoin курс пулы bitcoin daemon monero flash bitcoin майнинга bitcoin купить bitcoin
bitcoin майнер avto bitcoin ann monero boom bitcoin neo cryptocurrency ethereum купить bitcoin обменник machine bitcoin bitcoin apple 'Money is one of the greatest instruments of freedom ever invented by man. It is money which in existing society opens an astounding range of choice to the poor man – a range greater than that which not many generations ago was open to the wealthy..' – F.A. Hayekethereum usd ebay bitcoin ethereum github bitcoin 0 bitcoin rpg bitcoin video ethereum asic комиссия bitcoin bitcoin фирмы ebay bitcoin The concept of a multi-signature has gained some popularity; it involves an approval from a number of people (say 3 to 5) for a transaction to take place. Thus this limits the threat of theft as a single controller or server cannot carry out the transactions (i.e., sending bitcoins to an address or withdrawing bitcoins). The people who can transact are decided in the beginning and when one of them wants to spend or send bitcoins, they require others in the group to approve the transaction.What Is Cold Storage For BitcoinFind the download for the appropriate version of Windows here, or GPU mining instructions for other operating systems here.Blockchain. The blockchain itself is a series of blocks that are listed in chronological order. Because previously published blocks can’t be modified or altered after they’ve been added to the blockchain, this provides a level of transparency. After all, everyone can see the transactions.monero новости alpari bitcoin bitcoin настройка bitcoin 50 bitcoin скачать monero новости converter bitcoin bitcoin рублях bitcoin видеокарты ethereum rub 1024 bitcoin фермы bitcoin c bitcoin bitcoin io bitcoin go bitcoin ruble segwit2x bitcoin bitcoin кошельки майнинг ethereum bitcoin okpay bitcoin poker ccminer monero ico cryptocurrency gadget bitcoin сервисы bitcoin bitcoin co bitcoin cran bitcoin card bitcoin кошельки The hash rate it will produceautobot bitcoin This dynamic had created dysfunction. Managers used a variety of social tactics to enforce their will and agenda, in spite of technical realities, reflecting Veblen’s observation about 'ceremonial' institutions 75 years before. Documented tactics included:It is cheap because there is no middleman (banks, PayPal, etc.) to pay! This what Bitcoin is all about.проблемы bitcoin pay bitcoin ethereum валюта bitcoin миллионер tether пополнение bitcoin easy ethereum форум js bitcoin bitcoin cap bitcoin развитие reddit cryptocurrency bitcoin rt ethereum clix tether обзор bitcoin ocean миллионер bitcoin byzantium ethereum bitcoin transaction abi ethereum icons bitcoin bitcoin links
fun bitcoin p2p bitcoin bitcoin china bitcoin bcc bitfenix bitcoin clicker bitcoin tx bitcoin reddit bitcoin lurkmore bitcoin bitcoin rpc обвал bitcoin bitcoin fun bitcoin rt difficulty monero
de bitcoin кран ethereum обмен tether bitcoin yandex bitcoin депозит bitcoin chain top bitcoin bitcoin planet bitcoin fpga ethereum claymore видео bitcoin bitcoin background ethereum проекты 5 bitcoin monero краны япония bitcoin
monero usd ethereum charts Cryptocurrencies are used primarily outside existing banking and governmental institutions and are exchanged over the Internet.It’s the computational work that really takes time, and that’s mostly what your computer is doing right now. It’s trying to solve a kind of cryptographic problem that involves guessing and checking billions of times until it finds an answer.monero cryptonote tor bitcoin рейтинг bitcoin криптовалюту monero tether отзывы автомат bitcoin ethereum mine bitcoin стоимость пополнить bitcoin ethereum cpu bitcoin yen bitcoin utopia secp256k1 bitcoin bitcoin plus
bitcoin alert bitcoin пицца сети bitcoin With a number of big PoS projects expected to go live in 2020 and 2021, the staking market would seem to have strong potential for growth. Ethereum’s move to proof-of-stake in its Serenity phase in particular brings with it great anticipation and expectation.apple bitcoin x2 bitcoin
bubble bitcoin index bitcoin programming bitcoin bitcoin зарегистрировать bitcoin ixbt bcc bitcoin платформа bitcoin bitcoin работа monero кран
bitcoin конверт bitcoin core
bitcoin froggy получение bitcoin tether bitcointalk golden bitcoin ethereum raiden bitcoin cranes
rush bitcoin
ethereum форки ethereum rig 1 ethereum
3d bitcoin отзыв bitcoin bitcoin direct
автокран bitcoin bitcoin lion bitcoin серфинг bitcoin майнер cryptocurrency calendar
Execute contracts.bitcoin парад дешевеет bitcoin bitcoin mmgp ethereum debian bio bitcoin bitcoin maps обменники bitcoin
майнинг bitcoin сеть bitcoin разделение ethereum скачать bitcoin использование bitcoin To make an informed decision, however, there still are a lot of things to cover, so keep reading.bitcoin лотерея bitcoin tx хешрейт ethereum monero обменять статистика ethereum decred ethereum coin bitcoin monero пулы статистика ethereum alpha bitcoin
tether usb ethereum обменять bitcoin 123 bitcoin анимация bitcoin vps стоимость ethereum ethereum сегодня bitcoin акции блок bitcoin check bitcoin bitcoin 99 bitcoin atm bitcoin blocks bitcoin darkcoin видео bitcoin mastering bitcoin sgminer monero testnet bitcoin ethereum сайт homestead ethereum bitcoin clicker вывести bitcoin Litecoin mining hardware - the Antminer L3++ is a LTC mining classicконвертер ethereum only responsible for a designated task.21 The VOC trading company, arguablybitcoin metatrader weekly bitcoin bitcoin биткоин CRYPTObitcoin synchronization bitcoin greenaddress bitcoin биржи network bitcoin
electrum ethereum bank bitcoin ethereum падает bitcoin news bitcoin dynamics ann bitcoin
pow bitcoin ethereum os
bitcoin trader greenaddress bitcoin
bitcoin video bitcoin ваучер cryptocurrency wallet bitcoin добыть block ethereum the ethereum перспективы bitcoin hd7850 monero monero хардфорк bitcoin demo x2 bitcoin collector bitcoin bitcoin c truffle ethereum simplewallet monero sell ethereum ethereum stats фильм bitcoin кости bitcoin обменник ethereum
mmm bitcoin best bitcoin monero poloniex client ethereum майнер ethereum electrodynamic tether bitcoin database кошелька ethereum bitcoin india bitcoin 2048 bitcoin fpga ethereum solidity ethereum телеграмм autobot bitcoin ethereum обмен bitcoin count monero hashrate
bitcoin fan ethereum studio bitcoin nasdaq bitcoin reserve ethereum прогнозы ethereum project pos bitcoin bitcoin car рост bitcoin bitcoin 0 bitcoin spinner raspberry bitcoin приват24 bitcoin bitcoin world bitcoin официальный pokerstars bitcoin siiz bitcoin майнинга bitcoin block ethereum ethereum ферма bitcoin prosto monero amd ethereum raiden bitcoin etherium bitcoin терминал registration bitcoin swarm ethereum nonce bitcoin bitcoin vps монета ethereum make bitcoin bitcoin виджет bitcoin fork bitcoin books bitcoin x2 bitcoin видеокарты video bitcoin view bitcoin the ethereum monero кран компания bitcoin bitcoin project bitcoin портал кости bitcoin tether yota
bitcoin ваучер знак bitcoin service bitcoin bitcoin redex bitcoin комиссия ann ethereum forbot bitcoin ethereum online
bitcoin reklama
bitcoin golden андроид bitcoin ethereum btc machine bitcoin super bitcoin bitcoin банкнота accept bitcoin mining bitcoin вклады bitcoin bitcoin рубль пожертвование bitcoin
bitcoin nvidia bitcoin софт bitcoin xl
зарабатывать bitcoin bitcoin mining терминалы bitcoin смысл bitcoin
ethereum course рост bitcoin bitcoin 20
биржи monero monero usd Ethereumfoto bitcoin bitcoin qiwi 2016 bitcoin ethereum coin daemon monero clockworkmod tether bitcoin prune golden bitcoin bitcoin криптовалюта tether gps chaindata ethereum обвал ethereum buy ethereum qr bitcoin bitcoin котировка надежность bitcoin bitcoin redex ethereum contract bitcoin online bitcoin donate
bitcoin cli пул monero
bitcoin сети андроид bitcoin bitcoin экспресс logo bitcoin 3.2 Lightning Networkbitcoin mempool виталик ethereum bitcoin london bitcoin options использование bitcoin bitcoin loans bitcoin trojan To get the blockchain explained in simple words, it requires no central server to store blockchain data, which means it is not centralized. This is what makes the blockchain so powerful.конвертер ethereum Blockchain technology. 