Blockchain & Bitcoins - SIMPLIFIED
You might have been exposed while you've been surfing the internet, or while you've been having an interesting chat with a group of your friends to the topic of Blockchain and Bitcoins.
Although it sounds very complicated topic, however, there is a way to simplify it. Eventually, it's the tech hype now! Allow me few mins.
Let me start with Bitcoin first;
Bitcoin is a digital and global money system (currency). It allows people to send or receive money across the internet, even to someone they don't know or don't trust. Money can be exchanged without being linked to a real identity. The mathematical field of cryptography is the basis for Bitcoin's security.
A Bitcoin address, or simply address, is an identifier of 26-35 alphanumeric characters, beginning with the number 1 or 3, that represents a possible destination for a bitcoin payment. Addresses can be generated at no cost by any user of Bitcoin. For example, using Bitcoin Core, one can click "New Address" and be assigned an address. It is also possible to get a Bitcoin address using an account at an exchange or online wallet service.
Yes, as you can imagine, Bitcoin is just as money, the dollar bill, but made digitally out of numbers, 001, 100, 101, etc.. The bitcoins you might have will also get a money-value. This is an interesting article by Andy Mukherjee from Bloomberg Bitcoin as Money? Here's How It'll Happen
Ok! Now, The Bitcoin is the front-end that people deal with, just a digital currency. However, the technical structure basis which holds the bitcoins transactions is so called Blockchain, simply, it is just the method of how the Bitcoin, or other digital currencies flow around.
The Blockchain Sites or users using the Bitcoin system are required to use a global database called the blockchain. The blockchain is a record of all transactions that have taken place in the Bitcoin network. It also keeps track of new bitcoins as they are generated. With these two facts, the blockchain is able to keep track of who has how much money at all times.
So, how all this things started to happen? A mysterious user [till today!] called Satoshi Nakamoto who first released his methodology via bitcoin.org as a research paper. Here is Satoshi's PDF!
But Blockchain is not used only for Bitcoin and digital currency transaction!
Image from: Security Zap
Start to gets complicated? Ok, you can watch this video! Bitcoin explained and made simple | Guardian Animations
Now, as a start, that's all what you need to know. Bitcoin is a currency made digitally, shared via a method called Blockchain, which is exchanging digital money without middle-man [the bank, or credit card company, etc..]. Although User ID is anonymous, the invoice and transaction is saved and traceable.
Do you want some more resources? You think the topic is interesting to you for a deep dive? That's awesome! I've prepared some good references for you! Here you go. ALL FOR FREE!
Here is a link to a Huffington Post article on Blockchain technology. There is a 2 minute video that explains the concept and why it is important. Read and watch it HERE (Links to an external site.)
Blockchain Essentials - IBM FREE COURSE with IBM Badge. This is a 2 Hour Free Course and you receive a Badge upon completion. Take it at: Blockchain Essentials
Here is a free ebook from IBM called "Blockchain for Dummies". Click on the link to download the free PDF book: Blockchain for Dummies
So many companies are adapting the Bitcoin transactions to sell their products and relying on Blockchain structure. Here is one of the list that has some companies you know, like KFC! Companies That Accepts Bitcoins Payment
I hope this would help you to understand the global purchase pattern change. If you would like any clarification, let me know! If I don't know the information you are requesting, we can look for the information together!
If you think I've missed something, please write in comments section! You could help me and others exploring more information and knowledge!
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Aboud GK