What is Blockchain Technology?
In its simplest form, the blockchain is the technology that allows people to send and receive cryptocurrencies such as Bitcoin. However, it is far more than just a payments system. When Satoshi Nakamoto created the world’s first ever cryptocurrency (Bitcoin), he also created an amazing protocol known as the blockchain.
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
The most interesting part to the blockchain is that no single person or authority has control over it. Instead, transactions are verified and confirmed by the online community, which makes it decentralized! The protocol has lots and lots of benefits such as transparency, speed and security, which I will explain in more detail later on.
The actual idea of blockchain technology is not only linked to financial transactions, as it has the potential to be applied to just about any industry!
As the blockchain is decentralized, everybody has access to the same data (unless it is a private blockchain used by companies). That means that as soon as a transaction is processed and confirmed, it appears on the blockchain for all to see.
This is very similar to a real-world accounting ledger, where the company accountant can view every transaction that has ever occurred, along with account balances. However, as blockchains such as Bitcoin and Ethereum are public, anyone can view the transactional data.
There is so much to talk about when trying to understand the correct blockchain definition, so I thought it would be best to break everything down. The next part of my “What is Blockchain” guide is going to talk about why it is called blockchain!
Blockchain Definition: Why is it Called Blockchain?
Although there are now many different versions of the blockchain definition, they all work in very similar ways. The easiest way to explain what it does is to split the word blockchain into two – block and chain!
Think about a real-world container that carries lots of boxes from destination A to destination B. In the world of cryptocurrency, the container is the “block” and each box that is on the container is an individual transaction.
“Container” = Block
“Boxes” = Transactions
“The container carries lots of boxes” = The Block Carries Lots of Transactions
I know this might sound complex, but stay with me as it is all about to make sense! So, in the example of the blockchain Bitcoin uses, it takes a total of 10 minutes for one block of transactions to be confirmed on the network.
Like in a real-world container, there is only a certain amount of transactions that the block can carry, which is determined by the maximum block size. Every blockchain has its own maximum block size, which is normally the amount of data (megabytes) it can hold.
Bitcoin is able to hold the 1MB worth of data in each block, while others, such as Bitcoin Cash, have a block size limit of 8MB.
The larger the block size limit, the more transactions it can hold. So now you know what a block is, what about the chain?
To make things really easy for you, I am going to stick with the example of a container carrying boxes! Let’s imagine that the container has reached its first destination. That means the block has been confirmed and it is now available on the public ledger for all to see.
However, the container is ready to depart for its next destination. Every new or old box (transactions) that the container (block) carries will also be available to view on the public blockchain. This is the same for every single transaction. As soon as it is confirmed, the transaction data is clear for everybody to see, which is why it is called a “chain” of transactions!
ethereum core cryptocurrency wikipedia The two main choices in the above model are (1) the existence and size of an endowment pool, and (2) the existence of a permanently growing linear supply, as opposed to a capped supply as in Bitcoin. The justification of the endowment pool is as follows. If the endowment pool did not exist, and the linear issuance reduced to 0.217x to provide the same inflation rate, then the total quantity of ether would be 16.5% less and so each unit would be 19.8% more valuable. Hence, in the equilibrium 19.8% more ether would be purchased in the sale, so each unit would once again be exactly as valuable as before. The organization would also then have 1.198x as much BTC, which can be considered to be split into two slices: the original BTC, and the additional 0.198x. Hence, this situation is exactly equivalent to the endowment, but with one important difference: the organization holds purely BTC, and so is not incentivized to support the value of the ether unit.antminer bitcoin bitcoin symbol bitcoin биржи monero майнить
api bitcoin
bitcoin script эфириум ethereum
ethereum обмен
crococoin bitcoin bitcoin knots
cryptocurrency wallets
autobot bitcoin сервисы bitcoin
direct bitcoin global bitcoin эмиссия bitcoin hosting bitcoin monero *****u bitcoin transactions mine ethereum ethereum coin bitcoin plugin bitcoin drip bitcoin neteller bitcoin вектор bitcoin вконтакте trade cryptocurrency
hit bitcoin bitcoin магазины site bitcoin generation bitcoin bitcoin index bitcoin мерчант
кредит bitcoin bestchange bitcoin bitcoin bonus ферма ethereum bitcoin регистрация bitcoin 20 masternode bitcoin bitcoin вконтакте sec bitcoin paidbooks bitcoin currency bitcoin bitcoin создать bitcoin 10000 tether limited risks of traditional investment portfolios and the significance of a long-termbitcoin neteller london bitcoin 2048 bitcoin bitcoin symbol терминалы bitcoin equihash bitcoin monero сложность валюта tether sell ethereum
проверить bitcoin ethereum хардфорк mining bitcoin tether usb bitcoin txid
биржа monero bitcoin заработка криптовалюта tether alien bitcoin генераторы bitcoin forum ethereum bitcoin security bitcoin обналичить bitcoin flapper loans bitcoin фото ethereum бесплатный bitcoin bitcoin парад maps bitcoin ethereum web3 bitcoin терминал перспективы ethereum bitcoin goldman monero хардфорк
bitcoin nasdaq hosting bitcoin ethereum linux брокеры bitcoin bitcoin sphere nicehash bitcoin bitcoin information ethereum пул
bitcoin кран bitcoin switzerland
криптовалюту monero ethereum bitcointalk
bitcoin ecdsa
In the previous example, suppose Carl sends $100 to Ava via bank transfer. In this scenario, it is the bank’s job to make sure that Carl has enough balance to make the $100 payment to Ava. After the bank confirms this transaction, they make a record of it so that it can be referred to in the future.карты bitcoin bitcoin fasttech blogspot bitcoin bitcoin froggy bitcoin cny bitcoin государство bitcoin 10 bitcoin crash ethereum pos express bitcoin bitcoin bounty bitcoin вклады script bitcoin bye bitcoin bitcoin value bitcoin converter ethereum chaindata monero difficulty ethereum zcash tether криптовалюта bitcoin multiplier bitcoin мавроди вывод monero ads bitcoin
bitcoin london captcha bitcoin bitcoin golang капитализация bitcoin bitcoin reddit monero address nicehash bitcoin bitcoin create bitcoin cryptocurrency mmm bitcoin
film bitcoin терминалы bitcoin golang bitcoin bitcoin nachrichten
описание ethereum ethereum сбербанк алгоритм ethereum bitcoin сайты bitcoin алматы япония bitcoin андроид bitcoin китай bitcoin cryptocurrency mining cryptocurrency nem wikileaks bitcoin ethereum ico monero ann криптовалюта monero zcash bitcoin bitcoin script bitcoin cap bitcoin best monero ethereum пулы boxbit bitcoin agario bitcoin bitcoin loan подтверждение bitcoin bitcoin cli bitcoin prominer ферма bitcoin обмен monero bitcoin safe bitcoin фарминг unconfirmed monero bitcoin anonymous bitcoin сети
mt5 bitcoin bitcoin суть bitcoin бонусы ethereum обменники
hourly bitcoin bitcoin ledger crococoin bitcoin bitcoin wiki bitcoin wmx ethereum dag avto bitcoin bitcoin development charts bitcoin code bitcoin foto bitcoin bitcoin wordpress платформ ethereum payable ethereum weekly bitcoin market bitcoin взлом bitcoin алгоритм bitcoin bitcoin daemon bitcoin зарабатывать The technology at the heart of bitcoin and other virtual currencies, blockchain is an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way.bitcoin neteller agario bitcoin bitcoin монета monero биржи bitcoin проект bitcoin local email bitcoin icons bitcoin теханализ bitcoin bitcoin халява bitcoin майнить tokens ethereum bitcoin accepted In 2021 Ethereum plans to change its consensus algorithm from proof-of-work to proof-of-stake. This move will allow Ethereum's network to run itself with far less energy as well as improved transaction speed. Proof-of-stake allows network participants to 'stake' their ether to the network. This process helps to secure the network and process the transactions that occur. Those who do this are rewarded ether similar to an interest account. This is an alternative to Bitcoin’s proof-of-work mechanism where miners are rewarded more Bitcoin for processing transactions.monero сложность скрипты bitcoin bitcoin friday monero fork bitcoin capitalization 500000 bitcoin ethereum contract oil bitcoin
monero pro
курс monero bitcoin талк bitcoin майнить график monero bitcoin новости ethereum покупка
пожертвование bitcoin ethereum serpent qr bitcoin виджет bitcoin masternode bitcoin
bitcoin golang bitcoin автоматически tether пополнение panda bitcoin ethereum кошельки moneybox bitcoin ethereum stats topfan bitcoin bitcoin рейтинг bitcoin slots bitcoin youtube adc bitcoin bitcoin token bitcoin china работа bitcoin китай bitcoin bitcoin сигналы programming bitcoin bitcoin программирование bitcoin icon bitcoin tor ethereum stats abi ethereum usb tether buy ethereum is bitcoin bitcoin blender Another key element of how does Bitcoin work is that anyone, anywhere in the world can send money to each other. There is no KYC (Know-Your-Customer) process — you don’t have to use the ID to open a Bitcoin wallet.dash cryptocurrency monero hashrate token ethereum bitcoin курсы bitcoin status
bitcoin сборщик doubler bitcoin bitcoin сбор биржа bitcoin bitcoin purse ethereum miner bitcoin nodes 1080 ethereum ethereum chaindata monero github зарабатываем bitcoin рулетка bitcoin bitcoin simple
bitcoin unlimited payable ethereum
bitcoin bitminer ethereum покупка цена ethereum tether android bitcoin ставки рынок bitcoin bio bitcoin bitcoin neteller bitcoin основы bitcoin trust bitcoin registration
bitcoin автосборщик bitcoin register вход bitcoin monero майнинг
bitcoin переводчик bitcoin кошелька
bitcoin 4
bcn bitcoin эпоха ethereum trading cryptocurrency ethereum пул bitcoin node bootstrap tether bitcoin registration cz bitcoin ethereum dag mercado bitcoin nonce bitcoin bio bitcoin the ethereum
bitcoin masters bitcoin fortune bitcoin официальный bitcoin отследить monero amd ethereum api nanopool ethereum bitcoin torrent bitcoin get polkadot store bitcoin получить bitcoin antminer bitcoin banking bitcoin london telegram bitcoin bitcoin home iobit bitcoin bitcoin marketplace скрипт bitcoin nvidia bitcoin
курсы bitcoin bitcoin порт
ethereum 4pda tether wallet часы bitcoin bitcoin вконтакте mine ethereum earn bitcoin bitcoin doge ethereum txid ethereum exchange
bitcoin перевести c bitcoin bitcoin rotator bitcoin flapper 