What is Blockchain Technology? A Step-by-Step Guide For Beginners
Author
Ameer Rosic
Was ist Blockchain-Technologie
Back to Guides
EN AR ZH FR DE HI IT ID JA KO FA PT RU ES
Tweet
60
Share
Share
WhatsApp
The blockchain is an undeniably ingenious invention – the brainchild of a person or group of people known by the pseudonym, Satoshi Nakamoto. But since then, it has evolved into something greater, and the main question every single person is asking is: What is Blockchain?
Is Blockchain Technology the New Internet?
By allowing digital information to be distributed but not copied, blockchain technology created the backbone of a new type of internet. Originally devised for the digital currency, Bitcoin blockchain, (Buy Bitcoin) the tech community has now found other potential uses for the technology.
In this guide, we are going to explain to you what the blockchain technology is, and what its properties are what make it so unique. So, we hope you enjoy this, What Is Blockchain Guide. And if you already know what blockchain is and want to become a blockchain developer please check out our in-depth blockchain tutorial and create your very first blockchain.
blockchain technology explained infographic
A blockchain is, in the simplest of terms, a time-stamped series of immutable records of data that is managed by a cluster of computers not owned by any single entity. Each of these blocks of data (i.e. block) is secured and bound to each other using cryptographic principles (i.e. chain).
So, what is so special about it and why are we saying that it has industry-disrupting capabilities?
The blockchain network has no central authority — it is the very definition of a democratized system. Since it is a shared and immutable ledger, the information in it is open for anyone and everyone to see. Hence, anything that is built on the blockchain is by its very nature transparent and everyone involved is accountable for their actions.
What exactly is Blockchain?
A blockchain carries no transaction cost.
(An infrastructure cost yes, but no transaction cost.) The blockchain is a simple yet ingenious way of passing information from A to B in a fully automated and safe manner. One party to a transaction initiates the process by creating a block. This block is verified by thousands, perhaps millions of computers distributed around the net. The verified block is added to a chain, which is stored across the net, creating not just a unique record, but a unique record with a unique history. Falsifying a single record would mean falsifying the entire chain in millions of instances. That is virtually impossible. Bitcoin uses this model for monetary transactions, but it can be deployed in many other ways.
What is Blockchain Technology? A Step-by-Step Guide For Beginners
Think of a railway company. We buy tickets on an app or the web. The credit card company takes a cut for processing the transaction. Blockchains, not only can the railway operator save on credit card processing fees, it can move the entire ticketing process to the blockchain. The two parties in the transaction are the railway company and the passenger. The ticket is a block, which will be added to a ticket blockchain. Just as a monetary transaction on the blockchain is a unique, independently verifiable and unfalsifiable record (like Bitcoin), so can your ticket be. Incidentally, the final ticket blockchain is also a record of all transactions for, say, a certain train route, or even the entire train network, comprising every ticket ever sold, every journey ever taken.
But the key here is this: it’s free. Not only can the blockchain transfer and store money, but it can also replace all processes and business models that rely on charging a small fee for a transaction. Or any other transaction between two parties.
Here is another example. The gig economy hub Fivver charges 0.5 dollars on a 5 transaction between individuals buying and selling services. Using blockchain the transaction is free. Ergo, Fivver will cease to exist. So will auction houses and any other business entity based on the market-maker principle.
Even recent entrants like Uber and Airbnb are threatened by blockchain. All you need to do is encode the transactional information for a car ride or an overnight stay, and again you have a perfectly safe way that disrupts the business model of the companies which have just begun to challenge the traditional economy. We are not just cutting out the fee-processing middle man, we are also eliminating the need for the match-making platform.
Because blockchain transactions are free, you can charge minuscule amounts, say 1/100 of a cent for a video view or article read. Why should I pay The Economist or National Geographic an annual subscription fee if I can pay per article on Facebook or my favorite chat app? Again, remember that blockchain transactions carry no transaction cost. You can charge for anything in any amount without worrying about third parties cutting into your profits.
Blockchain may make selling recorded music profitable again for artists by cutting out music companies and distributors like Apple or Spotify. The music you buy could even be encoded in the blockchain itself, making it a cloud archive for any song purchased. Because the amounts charged can be so small, subscription and streaming services will become irrelevant.
It goes further. Ebooks could be fitted with blockchain code. Instead of Amazon taking a cut, and the credit card company earning money on the sale, the books would circulate in encoded form and a successful blockchain transaction would transfer money to the author and unlock the book. Transfer ALL the money to the author, not just meager royalties. You could do this on a book review website like Goodreads, or on your own website. The marketplace Amazon is then unnecessary. Successful iterations could even include reviews and other third-party information about the book.
In the financial world the applications are more obvious and the revolutionary changes more imminent. Blockchains will change the way stock exchanges work, loans are bundled, and insurances contracted. They will eliminate bank accounts and practically all services offered by banks. Almost every financial institution will go bankrupt or be forced to change fundamentally, once the advantages of a safe ledger technology without transaction fees are widely understood and implemented. After all, the financial system is built on taking a small cut of your money for the privilege of facilitating a transaction. Instead of paying high transaction fees to the banks and taking several days for payments to settle and clear, they can just transact between each other on blockchain-based exchanges with ease and at no time. Bankers will become mere advisers, not gatekeepers of money. Stockbrokers will no longer be able to earn commissions and the buy/sell spread will disappear.
cryptocurrency tether пополнение monero free ethereum новости будущее ethereum bitcoin xpub bitcoin poker ad bitcoin global bitcoin bitcoin информация
bitcoin руб
ethereum обменять покер bitcoin bitcoin development
golang bitcoin bitcoin python bitcoin торги monero hardware
car bitcoin значок bitcoin monero dwarfpool
bitcoin фарм tether limited bitcoin registration
ethereum game bitcoin doge ethereum txid amazon bitcoin обновление ethereum bitcoin dance bcc bitcoin ethereum обвал ethereum windows bitcoin information bitcoin markets bitcoin etf ethereum платформа ethereum algorithm bitcoin in
bitcoin fpga
bitcoin foto mail bitcoin ethereum code carding bitcoin ethereum complexity проекты bitcoin cryptocurrency ethereum gas etoro bitcoin aliexpress bitcoin сша bitcoin faucet cryptocurrency bitcoin ruble blockchain monero
pay bitcoin Like the aforementioned IBM report, most incumbent technology companies try to cram cryptocurrency into a larger story about 'digital assets' and their promises of 'super efficiency.' One McKinsey white paper describes vaguely how 'blockchain' will help your insurance company keep your passport on file. These incoherent stories typically place cryptocurrency into one of several pre-existing sectors:Blockchain explained: centralized systems vs blockchain.Touchscreen user interfacebitcoin статья работа bitcoin
эмиссия ethereum bitcoin информация ethereum калькулятор bitcoin список A screenshot of the coinbase.com Bitcoin trading dashboard shows the changing values of Bitcoin cryptocurrency.cryptocurrency ethereum earnings bitcoin cryptocurrency price суть bitcoin free bitcoin ethereum cryptocurrency
wallet cryptocurrency bitcoin girls bitcoin xpub tether майнить
bitcoin видеокарта 6000 bitcoin grayscale bitcoin ethereum markets cryptocurrency wikipedia видеокарта bitcoin eos cryptocurrency monero форк bitcoin red ethereum картинки kraken bitcoin сеть bitcoin bitcoin rub bitcoin символ rocket bitcoin rigname ethereum by Paul Gilboom bitcoin doge bitcoin 123 bitcoin bitcoin windows обмена bitcoin котировки bitcoin bitcoin путин bitcoin payment
bitcoin explorer бесплатный bitcoin statistics bitcoin bitcoin code заработать monero bitcoin co bitcoin vip 1080 ethereum bitcoin base
bitcoin planet bitcoin favicon bitcoin multibit bitcoin магазин bitcoin casino monero price создать bitcoin эфириум ethereum bitcoin reserve linux bitcoin конец bitcoin bitcoin лотерея auction bitcoin
bitcoin сокращение обменники bitcoin monero fork bonus bitcoin bitcoin взлом bitcoin автомат bitcoin мастернода 1060 monero bitcoin payment bitcoin ios captcha bitcoin cryptocurrency chart bitcoin gpu ethereum майнеры bitcoin регистрации bitcoin stealer bitcoin scrypt avto bitcoin iso bitcoin автомат bitcoin bitcoin simple продать monero polkadot stingray monero биржи tether программа терминал bitcoin tether обменник pps bitcoin bitcoin сбор курса ethereum прогноз bitcoin ethereum картинки twitter bitcoin ethereum contracts bitcoin usb ethereum complexity ethereum web3 1060 monero кости bitcoin lootool bitcoin ethereum скачать разработчик ethereum bitcoin генератор нода ethereum ethereum рост падение bitcoin бесплатные bitcoin cryptocurrency charts блокчейн bitcoin bitcoin conference blogspot bitcoin
tether майнинг ethereum difficulty ютуб bitcoin bitcoin bcc bitcoin review bitcoin youtube смысл bitcoin дешевеет bitcoin casascius bitcoin bitcoin hacking free monero bonus bitcoin local ethereum bitcoin location bitcoin download wiki ethereum ultimate bitcoin bitcoin транзакция bitcoin экспресс ethereum курсы обвал ethereum зарегистрировать bitcoin
mining cryptocurrency cz bitcoin ethereum 4pda bitcoin sberbank
bitcoin buy bitcoin фарминг cryptocurrency charts
bitcoin мошенники alpari bitcoin forex bitcoin raiden ethereum ethereum calculator hd7850 monero bitcoin хардфорк бесплатно ethereum bitcoin brokers bitcoin mempool mempool bitcoin скачать bitcoin
txid bitcoin проблемы bitcoin bitcoin crypto bitcoin super bitcoin daemon ethereum проблемы
fpga bitcoin система bitcoin основатель ethereum инвестирование bitcoin bitcoin fpga live bitcoin
bitcoin рост poloniex monero хайпы bitcoin заработок bitcoin bitcoin банкнота chart bitcoin
plus bitcoin bitcoin cash клиент bitcoin bitcoin вирус boom bitcoin bitcoin froggy
box bitcoin bitcoin crypto boxbit bitcoin mist ethereum bitcoin продать криптовалюту bitcoin bear bitcoin
cz bitcoin bitcoin scanner
bitcoin security
bitcoin курс ethereum crane bitcoin криптовалюта
рост ethereum bitcoin ann ethereum картинки roll bitcoin alpha bitcoin автомат bitcoin cryptocurrency faucet stealer bitcoin ethereum info
swiss bitcoin bitcoin crush портал bitcoin
bitcoin wmz bitcoin income Proof-of-Stake consensus is a poor alternativedownload bitcoin Introduction to Bitcoin and Existing Conceptsпроекта ethereum poloniex monero ropsten ethereum polkadot stingray запуск bitcoin plus bitcoin bitcoin account bitcoin дешевеет bitcoin uk bitcoin galaxy bitcoin grafik
usa bitcoin инструкция bitcoin bitcoin neteller ethereum course bitcoin wm bitcoin начало bitcoin графики
bitcoin generator bitcoin проект торговать bitcoin bitcoin адреса bitcoin masters chaindata ethereum
bitcoin sha256
обменник ethereum bitcoin valet ethereum сложность
ethereum продам
bitcoin валюты bitcoin растет bitcoin shop time bitcoin ethereum twitter bitcoin swiss bitcoin hesaplama crypto bitcoin ethereum бесплатно monero usd bitcoin работа ethereum контракт динамика bitcoin x2 bitcoin 1000 bitcoin ethereum node пример bitcoin
tx bitcoin ann ethereum
charts bitcoin биржи monero bitcoin earning bitcoin click кошель bitcoin monero обмен bitcoin accelerator bitcoin 2048 капитализация ethereum Cheaper and faster (than Bitcoin, at least) paymentstatistics bitcoin cryptocurrency charts ethereum ann bitcoin реклама bitcoin coinmarketcap lightning bitcoin bitcoin machine bitcoin swiss prune bitcoin bitcoin investment е bitcoin bitcoin icons форки ethereum faucet bitcoin x2 bitcoin monero вывод
reklama bitcoin криптовалюту bitcoin okpay bitcoin dance bitcoin view bitcoin hack bitcoin new bitcoin bitcoin book bitcoin strategy payable ethereum rpc bitcoin conference bitcoin график monero хайпы bitcoin bitcoin пул bitcoin rus nubits cryptocurrency bitcoin lottery
bitcoin шахты bitcoin страна wechat bitcoin bitcoin терминал calc bitcoin bitcoin solo ethereum asic finney ethereum bitcoin switzerland bitcoin луна форекс bitcoin bitcoin в space bitcoin favicon bitcoin ethereum майнить банкомат bitcoin bitcoin golden bitcoin ютуб love bitcoin 1000 bitcoin рост bitcoin
bitcoin фермы теханализ bitcoin bitcoin таблица bitcoin transactions Although a 'trustless' or 'trust-minimizing' monetary system is the goal, someone still needs to secure the financial records, ensuring that no one cheats.hack bitcoin bitcoin com nicehash bitcoin balance bitcoin картинки bitcoin bitcoin antminer bitcoin airbitclub bitcoin flex bitcoin symbol bitcoin минфин пополнить bitcoin
bitcoin ebay trade bitcoin ethereum вики
bitcoin history курс monero продажа bitcoin bitcoin safe bitcoin трейдинг
bitcoin игры
mooning bitcoin bitcoin бесплатно bitcoin qiwi bitcoin daily bitcoin значок wallet tether dogecoin bitcoin кости bitcoin carding bitcoin bitcoin knots flappy bitcoin bitcoin бумажник монет bitcoin bitcoin paypal ann bitcoin ninjatrader bitcoin теханализ bitcoin bitcoin ann верификация tether bitcoin marketplace bitcoin reddit ethereum обменять time bitcoin
bitcoin com cryptocurrency faucet bitcoin мошенничество bitcoin phoenix bitcoin pattern security bitcoin bitcoin captcha обменники bitcoin Infinity was unavoidably actualized by the same Aristotelean logic which sought to deny it. By the 13th century, some bishops began calling assemblies to question the Aristotelean doctrines that went against the omnipotence of God: for example, the notion that 'God can not move the heavens in a straight line, because that would leave behind a vacuum.' If the heavens moved linearly, then what was left in their wake? Through what substance were they moving? This implied either the existence of the void (the vacuum), or that God was not truly omnipotent as he could not move the heavens. Suddenly, Aristotelean philosophy started to break under its own weight, thereby eroding the premise of The Church’s power. Although The Church would cling to Aristotle’s views for a few more centuries—it fought heresy by forbidding certain books and burning certain Protestants alive—zero marked the beginning of the end for this domineering and oppressive institution.ethereum асик In PoS, only one miner can mine the block. When the next block is created, another miner is chosen to mine it. This way, it is only one miner using electricity on each block. That’s much cheaper and better for the environment!Compare Crypto Exchanges Side by Side With Otherswallets cryptocurrency wallets cryptocurrency programming bitcoin
erc20 ethereum blue bitcoin
fasterclick bitcoin
8. On-chain decentralized marketplaces, using the identity and reputation system as a base.On the other hand, hot wallets are more likely than cold storage techniques to face security issues or potentially be hacked. However, a hot wallet is not an unsafe way to store your cryptocurrency. Rather, compared to a cold storage method that is entirely removed from the Internet ecosystem, a hot wallet presents more risk to the holder because it can access (and theoretically be accessed by) other parts of the Internet.goldsday bitcoin stock bitcoin
настройка monero bitcoin faucet neo cryptocurrency
ethereum debian bitcoin maining
monero криптовалюта ethereum wallet yandex bitcoin rpg bitcoin 2048 bitcoin bitcoin автоматический A different research field, fault-tolerant distributed computing, has studied this problem, where it goes by different names, including state replication. A solution to this problem is one that enables a set of nodes to apply the same state transitions in the same order—typically, the precise order does not matter, only that all nodes are consistent. For a digital currency, the state to be replicated is the set of balances, and transactions are state transitions. Early solutions, including Paxos, proposed by Turing Award winner Leslie Lamport in 1989,28,29 consider state replication when communication channels are unreliable and when a minority of nodes may exhibit certain 'realistic' faults, such as going offline forever or rebooting and sending outdated messages from when it first went offline. A prolific literature followed with more adverse settings and efficiency trade-offs.the ethereum бумажник bitcoin monero hashrate майнер ethereum ethereum eth coinbase ethereum blacktrail bitcoin ethereum wallet bitcoin стратегия payoneer bitcoin bitcoin x
deep bitcoin donate bitcoin check bitcoin
bitcoin футболка bitcoin daily jpmorgan bitcoin electrum ethereum bitcoin vizit bitcoin прогноз doubler bitcoin decred ethereum bitcoin crash ethereum доллар lamborghini bitcoin автосборщик bitcoin monero usd bitcoin office bitcoin окупаемость ethereum картинки As a transaction-enabling technology, the Bitcoin blockchain creates a transparent, distributed ledger to record all transactions and prevent double-spending of its digital currency. The organization and maintenance of this cryptographically-secured, distributed ledger involves the participation of node operators to secure and keep the network up-to-date.bitcoin иконка
bitcoin 123 bitcoin news a) Smart Contracts Vs. Traditional Contract Systemsbitcoin основы ico ethereum
ethereum casper перспективы bitcoin microsoft bitcoin bitcoin hesaplama bitcoin будущее bitcoin nodes polkadot stingray tether транскрипция куплю ethereum
Example: 0xa6312ebbcea717972344bc598c415cb08e434c01b94d1c2a9b5415624d2c2b81the ethereum карта bitcoin bitcoin stock
airbitclub bitcoin bitcoin форум
bitcoin apk cubits bitcoin up bitcoin bitcoin sberbank bitcoin cranes bitcoin register tether coin ethereum farm bitcoin mt4 fpga bitcoin bitcoin matrix oil bitcoin андроид bitcoin buying bitcoin film bitcoin bitcoin electrum виталий ethereum wild bitcoin bitcoin майнить cubits bitcoin сборщик bitcoin xbt bitcoin bitcoin машины fast bitcoin ads bitcoin 0 bitcoin community bitcoin daemon bitcoin запуск bitcoin best cryptocurrency hashrate bitcoin ethereum block dog bitcoin app bitcoin keys bitcoin time bitcoin создатель ethereum
polkadot pool bitcoin курс bitcoin coins bitcoin
monero wallet 0 bitcoin claim bitcoin
исходники bitcoin tether wifi ethereum telegram
банк bitcoin bitcoin калькулятор hacker bitcoin planet bitcoin calculator ethereum майнить monero сбербанк ethereum bitcoin multibit bitcoin видеокарты As of 2016 it was estimated there were over 800 bitcoin ATMs operating globally, the majority (500+) being in the United States.bitcoin путин daily bitcoin ethereum fork
ethereum покупка
bitcoin banks
bitcoin сделки bitcoin count проект ethereum cubits bitcoin bitcoin википедия прогноз bitcoin зарегистрироваться bitcoin ethereum price bitcoin traffic kurs bitcoin кран bitcoin bitcoin friday bitcoin tm bitcoin traffic bitcoin blockstream hub bitcoin bitcoin legal bitcoin get transactions bitcoin майнинг bitcoin bitcoin webmoney bitcoin loan bitcoin сервисы ethereum mist bitcoin орг forum ethereum торговать bitcoin bonus bitcoin tether usd
программа tether casinos bitcoin
запросы bitcoin
калькулятор monero uk bitcoin bitcoin daily платформы ethereum value bitcoin bitcoin халява bitcoin electrum bitcoin халява форум bitcoin
кошелька ethereum pos ethereum ethereum blockchain arbitrage bitcoin стоимость monero check bitcoin эпоха ethereum bitcoin steam
хайпы bitcoin форумы bitcoin bitcoin рухнул san bitcoin
bitcoin 2 обменять ethereum iso bitcoin circle bitcoin
bitcoin config
магазины bitcoin bitcoin amazon bitcoin programming bitcoin магазины надежность bitcoin bitcoin main yandex bitcoin bitcoin 2017 usb tether fork ethereum казино bitcoin
bitcoin xbt валюта monero bitcoin nvidia bear bitcoin ethereum заработок bitcoin signals bitcoin bit tether coinmarketcap bitcoin вконтакте ethereum pool tp tether ethereum debian заработок ethereum exmo bitcoin bitcoin book flappy bitcoin bitcoin xpub перспективы ethereum ethereum markets bitcoin окупаемость trading bitcoin exchange ethereum пополнить bitcoin tether кошелек seed bitcoin bitcoin математика
bitcoin scripting bitcoin alliance тинькофф bitcoin cryptocurrency bitcoin payeer ubuntu bitcoin bitcoin зарегистрироваться тинькофф bitcoin разделение ethereum ethereum вики алгоритмы ethereum weekend bitcoin 500000 bitcoin bitcoin продать redex bitcoin ethereum poloniex billionaire bitcoin x bitcoin ethereum краны ethereum wikipedia space bitcoin ethereum перевод bitcoin grafik компьютер bitcoin bitcoin аналоги bitcoin trading bitcoin betting разработчик bitcoin серфинг bitcoin auto bitcoin tether provisioning bcc bitcoin кран ethereum бесплатные bitcoin алгоритм bitcoin bitcoin abc bitcoin покупка bitcoin настройка bitcoin background ethereum заработать конференция bitcoin криптовалюты bitcoin
monero proxy
bitcoin sha256 мониторинг bitcoin bitcoin changer tether пополнение fast bitcoin bitcoin видеокарты
bitcoin trojan bitcoin transaction bitcoin зебра ann ethereum tether clockworkmod earn bitcoin