The Blockchain and Bitcoin for Beginners
While a large number of individuals are looking to invest in cryptocurrency as a long term investment, we have compiled a quick ‘beginner’s guide’ to both Blockchain and the MarketCap leader Bitcoin.
What is the Blockchain – explained?
The blockchain is a publicly distributed ledger used to record and keep digital transactions in a decentralized manner. Meaning that no single individual or entity has control over recording and keeping the records. This is similar to people talking in the street where anyone can communicate with anyone without any central control.
The blockchain is embedded on peer to peer networks that are synchronized through the internet allowing all transactions recorded at any one time to be visible to everyone within such network. Peer to peer networks are individual computers which interact directly with each other without the need for an intermediary or centralized control center. This means that each computer or person within the network acts as both a server and a client.
As such, the blockchain is managed autonomously by all members within the peer to peer network through the replication of all transactions made on the public ledger and the distributed time-stamping server. This is similar to class group projects where each student does their part but at the end every group member gets a copy of the assignment. Therefore, whenever a digital transaction is recorded, it is bundled with others that have been conducted within a given time period, say the last 10 minutes, and are cryptographically protected then published in the entire network.
These transactions are then validated by supercomputers and timestamped then kept in a linear chain that is linked to older blocks containing all transactions that have been recorded in the entirety of the blockchain. For this reason, the blockchain is transparent and immutable.
What is Bitcoin cryptocurrency – explained?
Those unique blockchain attributes have therefore made the blockchain a revolutionary invention which has led to the development of new forms of digital payments with Bitcoin being the most prominent cryptocurrency.
Bitcoin, conceptualized by Satoshi Nakamoto in 2008, is a digital payment system that allows peer to peer transactions between users on the blockchain without the need for an intermediary. Bitcoin is a decentralized currency that allows exchanges to be made between users and transactions verified in the publicly distributed ledger through a network of nodes.
Bitcoin has gained significant attention in the recent past due to the innovativeness of the peer to peer payment system that has removed the need for third parties in such transactions. However, only a few understand that the blockchain is the underlying technology upon which the Bitcoin is built.
Sally Davies, a FT Technology Reporter simplified it in this one simple quote:
“Blockchain is to Bitcoin, what the internet is to email. A big electronic system, on top of which you can build applications. Currency is just one.”
Since the development of the Bitcoin, the blockchain technology has gained remarkable use in various fields but has predominantly been utilized in the development of other cryptocurrencies. For instance, Ethereum, Ripple, Litecoin, and Dash are among the top traded cryptocurrencies currently all built using the blockchain technology.
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We hope you found the article above helpful. Here at CryptoxBureau.com we aim to be as helpful and informative as possible for our clients. So, if you’re interested in buying cryptocurrencies, even for the first time – we’d be happy to give you some advice.
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