What is a blockchain? But break it into the components, and not more than money at all, lego. All operations ever committed by every anonymous user are scaled here with indelible electronicness. And all of the above works on an extensive decentralized network of computers scattered in different countries.
This is a blockchain. Crypto of the coins, which some call digital gold and warren buffet, calls the “square rat-pop.”) There are a lot of cryptocurrencies, but bitcoin is the most famous. This guide is being done in order to help you understand bitcoin and be better able to navigate the btc world.
Blockchain, just putting up, is a decentralized record of records for any cryptocurrency processes. It is also known as the “decentralized book technology” (usually large firms that want to distance themselves from wild stories that come from the cryptocurrency market).
Cannot be prepared. This is due to everything that, say, the owner of a store prone to the only copy of their accounting book, whose dependent pages tell the story of all the banks of the tuna and the louds and bottles of the gin ever sold around the store, any person has a story a copy of the blockchain book. You have the opportunity to download bitcoin's ledger here. This is more than three hundred gigabytes. In order for this to pass, the blockchain sends your transaction to the network conditionally speaking miners; computers starting special software for checking transactions. After the miners nodded in confirmation of the consent that the consumer is different for the transaction and are not still trying to deceive the internet to earn your friend with bitcoins, the customer does not have, your friend? Bitcoin will receive, and the transaction will be fixed to the bitcoin blockchain, forever.
Everyone is able to configure the miner, and thousands of them are scattered along the adjacent world, as well as in some countries there are warehouses. Bitcoin -shahters earn bitcoin for tiring operation after processing the above transactions. These miners allow you to arrange a blockchain. You are not able to divide the transactions and send your friend two bitcoins, if you personally have only one, since the miners will not check this transaction on the blockchain. To check the block, they must run software, which solves a very complex mathematical puzzle. The network rewards miners for this unsuccessful interaction with an insufficient reduction in the transaction, proportional to the work that they performed when checking transactions. Transactions. One block may contain all the details of the transactions that occurred between 10 in the morning until 10:10 in the morning at christmas. This “block” will then be “chained” to the remaining blocks, in which there are other data on the list of which transactions between 10:10 and the top ten: 20 in the morning, 10-15 and a dozen: 30 in the morning and other, and other, announcement of infinitum.
Another moment: blockchains are anonymous. Take your good gift to one bitcoin to your friend to your appearance. Although all accounting books will show that only one bitcoin was postponed between several accounts, they are not able to connect this transaction with clients. You do not need to tell anyone, what is crypto wallets as a government or a bank about your crypto account. Privacy lawyers love him.
This is due to this that each blockchain user has his own wallet with a unique episode address-series (consider it with an electronic wallet number). Users receive an approach to such wallets using private keys that are known to the user and already to the user (consider them as a pin number of a credit card). If you forget this personal key, you write down a seed phrase: 16 random words that you can use for implementation (consider this the equivalent of your mother’s maiden name).
Brief history of the blockchain
Blockchain as a concept dates back to 1982, when a cryptograph called david chaum wrote a dissertation with the name “computer sites created, trusting and supported mutually suspicious groups. ”
Chaum would later develop digicash in 1989. This was one of the first attempts ever made by a truly anonymous, cryptographic payment system. He used cryptography and corporate keys to ensure conspiracy and reliability, and the “cyberbax” platforms began the first cryptocurrency. However, such a step was not decentralized; he relied on glass containers for the money supply. And it also did not take off: digicash, filed for bankruptcy at the end of 1998; the platform was trying to force the sellers to accept cyberbacks. Also known as bitcoin is a white document.This outlined a blockchain circuit; diet to confirm transactions based on its own currency and supported by miners. On january 3, 2009, the bitcoin blockchain network became public, and satoshi made the first block in the blockchain. The true personality of nakamoto remains unknown.
Bitcoin took off shortly after these formalities. One of the popular illustrations of his success, mythologized as a parable without failure, is the purchase of laszlo hanyecz of two papa john pizza for 10,000 bitcoins in 2010. This bitcoin will cost more than 130 million green usa today. > it quickly became the currency of the silk road, the popular online market, which has been dealing with 2011, until the fbi has closed education in 2013. These are approximately precious minutes, when bitcoin really began to take off. By 2013, bitcoin had a market capitalization of 1-3 billion us dollars. (Market capitalization of cryptocurrency, or market capitalization for brevity, is a united amount of all this cryptocurrency in the blood circulation, multiplied by the cost of the most serious of the current cryptocurrency.)
A short bubble in 2013, which grew up in bitcoins . Market capitalization of 13 billion dollars. In 2017, everything began to go crazy. At the end of the year, one bitcoin cost about $ 25,000. The price later crashed, but spent years from the moment after punishing about half. Limited supply. There are many of them. Other noticeable cryptocurrencies include ethereum, a network of blockchains that supports applications; teter, cryptocurrency, whose value is tied to the dollar of the states and ripple (also known as xrp), cryptocurrency built for payment networks. But blockchains make a whole unique world possible, which avoids dependence on centralized accounting books. For example, 80% of the world's leading financial institutions consider a specific technology based on the book for digital money (although, obviously, these are blockchains, which are widely included in centralized accounting books).
one of the extremely important technologies imported from bitcoins is a “smart contract”, which is a code that has the ability to automatically check the blockchain agreement. They provide a list in common lines set of requirements, which, when they are completed, automatically execute the contract. Similarly, the tenant wants the code to enter the house, while he does not doubt to send a deposit to people whom they have not heard. Smart contracts is used as a trusting third person. He can hold the deposit until the tenant enters the door code. If the door access code is not entered on time, the deposit is returning. The meaning of all this is that you do not need to rely on, say, on an agency for surrender or conditional deposit. This is all fixed in the code. You just need to imagine bitcoins, etherium or any other cryptocurrencies torn from the air, tokens can represent copyright assets. Something that this is, maybe, and meanwhile, any troubles, including a cow or a gold bar. It doesn’t matter: the matter is that you are given one or another real world active and tocenize it with a smart What is Fractional Ownership Real Estate contract. The main asset. This is, for example, how stablecoins act. Take the usdc, is one of the most most popular popular stablers in us dollars. Each usdc represents the us dollar, which is saved somewhere in the storage. This means that this coin, at any time, represents the us dollar.
the main thing is the option that you do not know you do not need to trust other users. This eliminates the craving for distributors for transaction processing (for example, a bank for transactions or a border agent for processing a passport). Often this reduces the costs that you need to cure for such medium -sized people (for example, pay an auditor, for example, check your books).
, The second, it is also almost impossible to turn back the blockchain of the transaction. After they can in the scheme, they will remain there forever, ensuring stability. Third, there is no single point of refusal on the blockchain. Distributing blockchain to different people of the blockchain, users are guaranteed from court errors or hacking, which has the opportunity to knock down one server.
There are disadvantages for blockchain, but a number of which are caused by the consequences of its advantages. As already mentioned, it is difficult to change the past blocks, there is nothing problem in specific databases, if retrospective changes are necessary. Errors are on the blockchain forever.
The second, the booty only gives one winner, and prey is very competitive.You will understand that from the side of the miners, they did not win, a lot of spent energy, and is also the reason that people consider bitcoin as environmentally unfriendly. The study in 2019 calculated that in the world wide web, bitcoins used 87.1 tvs of electricity in one year, which is equal, which is produced entirely by belgium. The full book of bitcoins is more than three hundred gb.
To invest in the blockchain, you need a cryptocurrency wallet to store your cryptocurrency. There are 2 different wallets. One variety is a software wallet, they are usually free. However, since they are effective in the internet everywhere there is an opportunity that a hacker can, say, register his keys on the internet and steal their password. Program wallets are most often used for a smaller amount of cryptocurrency.
Alternative - a hardware wallet created by the company, such as ledger or trezor. It is like short usb disks for crypto. You will need to pay for the risk and see them; if you lose their user also lose their cryptocurrency. However, since they are not connected to the network, they are more harmless to the optimal amount of cryptocurrency, they are often the best choice. A good exchange for volume is birances. Many different strategies are known for the work of cryptocurrencies, but you do not need to trade every day in order to use an exchange; you can also use it to make and retain cryptocurrency. You will get a magnificent chance to trade cryptocurrencies in different ways, as well as regular means, but the most popular way is trading cryptocurrencies for other blockchain and hope, and you will find a profit.
The earliest stage at which you will get a magnificent chance to invest in cryptocurrency is the "initial proposal of coins." This includes cryptonetwork, selling tokens previous launches; the side effects will be able to distribute these tokens for depositors as soon as the network costs on the air. Investors, without fail, expect that electric tokens will grow after the start of the network. Sometimes it works, but there are many terrible stories regarding ico, which are usually unregulated. Companies such as bitconnect or plexcoin promised incredibly high profitability, forcing investors fraudulent ico. The implementation is important. In 2020, bitcoin ranged from $ 7,500 to u.S. $ 16,300. They are also modern and unregulated to a certain extent. The stock market, as a rule, is safer.
Nevertheless, the blockchain went a long way, since it was first made at the very beginning of the 80s and walked in motion a little already a long time ago. In the new millennium, this is a large -scale system standing behind countless projects, which goes far beyond its first use of use.