- 11.02.2020

Explain what bitcoin is and how it works

explain what bitcoin is and how it worksmagazin-obzor.ru › newsround. All confirmed transactions are included in the block chain. It allows Bitcoin wallets to calculate their spendable balance so that new transactions can be verified.

How to Use This Guide Use the left slides to get a quick overview. Switch to the right slides to find out more. Why https://magazin-obzor.ru/and/exchange-position-and-cash-position.html Bitcoin exist?

Learn why Explain what bitcoin is and how it works was created and why it is so valuable. Bitcoin is designed to let you explain what bitcoin is and how it works, send, and receive money without any banks or credit card companies. Explain what bitcoin is and how it works Bitcoin came around, you needed banks, credit cards, or companies like PayPal and Venmo to send and receive money.

These companies were necessary to do something only they could do: verify that the person spending money actually has money to spend.

But what's so great about not using banks and credit card source For starters, they are slow, expensive, and part of a broken financial system.

Banks have huge explain what bitcoin is and how it works for buildings, lawyers, and highly paid executives - all funded by the fees explain what bitcoin is and how it works pay and massive taxpayer bailouts, like in Banks also limit how you can access and send your money.

Explain what bitcoin is and how it works

Ina mysterious person calling himself Satoshi Nakamoto invented Bitcoin. To this day, Satoshi remains anonymous and nobody knows who he or she is.

Satoshi could be a woman, a man, or a group of people.

Explain what bitcoin is and how it works

Nobody knows! What we do know is that the bitcoin. Then, in November, Satoshi posted the famous Bitcoin Whitepaper. The first Bitcoins were issued in January Before Bitcoin, the solution was for banks to keep track of the money in everybody's accounts, so that nobody could spend money twice.

Explain what bitcoin is and how it works

Bitcoin solves the Double Spend Problem differently. It makes all accounts and transactions public - but without revealing private details like your name.

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Since account balances are public, it would be explain what bitcoin is and how it works if someone used the same money twice. Solving the Double Spend Problem is a big deal. It allows bitcoin to be sent directly from one person to another, without using ANY third party like a bank.

Not needing a third party like a bank to handle accounts and transactions has a lot of benefits. Transactions can be faster see more cheaper since there is no middleman.

Plus, your personal information becomes more private since no bank has to store it.

Explain what bitcoin is and how it works

Level Explain what bitcoin is and how it works You finished part 1 of 4 What is Bitcoin? Bitcoin is a new form of money that's completely digital.

Going down the rabbit hole

It can be used by anyone, anywhere in the world. Unlike traditional forms of money, there are no physical bitcoins. Everything is done from phones and explain what bitcoin is and how it works.

This allows for fast and cheap transactions around the world and around the clock.

Incredibly, Bitcoin explain what bitcoin is and how it works not controlled by any person, company, or government.

Bitcoin users are located all around the world and use the internet to help send and receive payments. But unlike traditional payments that pass through banks, bitcoin is sent directly from person to person, instead of from person to company to person.

Explain what bitcoin is and how it works

This is known as a peer-to-peer system P2P. It means there is no central control. You can send and receive bitcoin online without needing to meet or even trust the other person.

Bitcoin has benefits that make it better than traditional money, banks, and credit card companies.

Explain what bitcoin is and how it works

Let's explore what makes Bitcoin so unique. Bitcoin was designed to solve problems that existed with the traditional banking system. But by finding a clever solution to the Double Spend Problem, Satoshi also created a better type of money.

Explain what bitcoin is and how it works

In fact, he was able to completely reinvent how money works. Having no banks in control makes sending and receiving money cheaper, explain what bitcoin is and how it works, and easier.

But how does bitcoin actually work?

Not having banks involved explain what bitcoin is and how it works nobody can deny your application, nobody can click your account, and nobody can charge you outrageous fees. In short, banks are no longer in charge.

This is what makes decentralized money so powerful. Bitcoin will give them the benefits of a bank, without needing a bank. Anyone with a smartphone and internet connection is welcome!

Benefit 2 - No Counterfeit Money Paper currencies, credit cards, and checks can be counterfeit. Bitcoin solves the Double Spend Problem which means criminals cannot create fake bitcoins. Counterfeiting is impossible. Counterfeit traditional money is read more common.

How does Bitcoin work?

In the U. Benefit 3 - Limited Supply Traditional money is created by governments in unlimited quantities.

They print more constantly, which decreases the value over time. There can never be more!

Explain what bitcoin is and how it works

A constantly increasing supply of money creates something called inflation. This means that the money you are holding is worth a little less every day.

This means the value of each Bitcoin is designed to increase click time.

Benefit 4 - Divisible Old fashioned money can be spent only in amounts as small as a single cent so up to 2 decimal places. Bitcoin can be spent in much smaller amounts, called Satoshis all the way up to 8 decimal places.

This means that it can be used even for tiny purchases. Bitcoin is highly divisible because its value is designed to increase over time through deflation. This divisibility means you can spend very small amounts of a bitcoin.

So basically, an ice cream cone may cost 0. These are very small payments used for digital goods and services. For example, imagine paying only a tiny amount of bitcoin for every page of an ebook you read, instead of paying for the whole book. Benefit 5 go here Security There is a lot of money stored in Bitcoin, so it needs to be very secure.

Bitcoin uses cryptography link securely send payments.

The code is so strong that tampering is improbable! gold coast coins and stamps phrase impossible. In simple terms, cryptography is a technology that protects information through complex math functions.

Bitcoin uses strong cryptography to protect your account and let you securely send money. You finished part 2 of 4 How does Bitcoin work?

Imagine four strangers sitting in a room, each with their own notebook. We are using strangers to explain this, because in explain what bitcoin is and how it works real world, most Bitcoin users do not know each other.

The notebooks in this example represent what's called the Bitcoin Blockchain. The Blockchain stores a public record of every single bitcoin transaction ever made. Most importantly, there are thousands and thousands of identical copies of the Blockchain held by users around explain what bitcoin is and how it works world.

Explain what bitcoin is and how it works

All these copies are https://magazin-obzor.ru/and/cheap-wordpress-hosting-and-domain.html in sync by the system that runs the Blockchain. One explain what bitcoin is and how it works gives one bitcoin to another stranger.

Now, EACH of the four strangers records this transaction. They then compare all their notebooks to make sure they match. Just like in the example, when bitcoin is sent, the transaction is recorded on EVERY one of the thousands of copies of the Bitcoin Blockchain around the world.

Each copy is an identical record of all transactions. Just like notebooks were compared in the example, the Bitcoin system is constantly comparing all copies of the Blockchain to make sure they all have matching transactions.

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If all four see more match up, everything is fine. The transaction is approved by everybody. If one notebook is different from the other three, we have a problem. It means one stranger is lying about the transaction. The transaction is not approved.

The same two outcomes can happen with Bitcoin: If all Blockchain copies explain what bitcoin is and how it works, everything is fine and the transaction will proceed.

Explain what bitcoin is and how it works

This is what prevents fraud. Bitcoin works exactly like the notebook example. All notebooks get constantly compared to make sure they match. Additionally, Bitcoin stores all past transactions permanently so that there is a record of where all bitcoin currently are.

This learn more here who owns which bitcoin.

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