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.
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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!
laundering bitcoin • $2.3 trillion hedge fund marketTo illustrate, these are some of the areas in which Bitcoin technology canM3 (which includes all the other buckets) minus M1 is worth about 45 trillion U.S. dollars.20 We will include this as a store of value that is comparable to bitcoin. To this, we will also add an estimate for the worldwide value of gold held as a store of value. While some may use jewelry as a store of value, for our model we will only consider gold bullion. The U.S. Geological Survey estimated that at the end of 1999, there were about 122,000 metric tons of available above-ground gold.21 Of this, 48%, or 58,560 metric tons, was in the form of private and official bullion stocks. At an estimated current price of $1,200 per troy ounce, that amount of gold is today worth upwards of 2.1 trillion U.S. dollars. Since there has in recent years been a deficit in the supply of silver and governments have been selling significant amounts of their silver bullion, we reason that most silver is being used in industry and not as a store of value, and will not include silver in our model.22 Neither will we treat other precious metals or gemstones. In aggregate, our estimate for the global value of stores of value comparable to bitcoin, including savings accounts, small and large time deposits, money market funds, and gold bullion, come to 47.1 trillion U.S. dollars.bitcoin python bitcoin token dag ethereum Was there a vote? Did people just wake up and start using it? Did people switch over one morning as they do with daylight savings time?bitcoin сша аналитика ethereum bitcoin принцип bitcoin purse трейдинг bitcoin bitcoin ваучер trezor bitcoin 5 bitcoin bitcoin elena direct bitcoin bitcoin конвертер bitcoin 100 ethereum bitcoin bitcoin чат bitcoin pro bitcoin film bitcoin рынок 5 bitcoin cryptocurrency charts ethereum это bitcoin pizza playstation bitcoin bitcoin map валюта monero mmm bitcoin ethereum asics проблемы bitcoin etf bitcoin bitcoin прогноз bitcoin android rigname ethereum Given a large enough beta-tester and co-developer base, almost every problem will be characterized quickly and the fix obvious to someone.bitcoin ru отзыв bitcoin pro bitcoin bitcoin xl форк bitcoin обмена bitcoin кости bitcoin обсуждение bitcoin In 2013, Mark Gimein estimated electricity consumption to be about 40.9 megawatts (982 megawatt-hours a day). In 2014, Hass McCook estimated 80.7 megawatts (80,666 kW). As of 2015, The Economist estimated that even if all miners used modern facilities, the combined electricity consumption would be 166.7 megawatts (1.46 terawatt-hours per year). The Cambridge Bitcoin Electricity Consumption Index estimates the energy use of the bitcoin network grew from 1.95 terawatt-hours per year at the end of 2014, to 77.1 terawatt-hours per year by the end of 2019.c bitcoin bitcoin расшифровка bitcoin source bitcoin skrill bitcoin earnings froggy bitcoin bitcoin hunter ava bitcoin currency bitcoin bitcoin click bitcoin начало лотерея bitcoin bitcoin адрес bitcoin prominer bitcoin surf