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 brain***** 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.
ethereum free ethereum эфириум polkadot stingray bitcoin linux
bitcoin litecoin
avatrade bitcoin bitcoin visa
bitcoin hash tether программа ethereum contracts bitcoin service отзывы ethereum bitcoin в bitcoin png алгоритм ethereum flappy bitcoin claymore monero ethereum cryptocurrency hd bitcoin
переводчик bitcoin bitcoin linux bitcoin weekend ethereum price 2016 bitcoin bitcoin qr bitcoin информация bitcoin bitrix алгоритм ethereum lootool bitcoin вложить bitcoin bitcoin nedir bitcoin cryptocurrency bitcoin fpga разработчик bitcoin скрипт bitcoin clicker bitcoin Smart contracts can take just minutes, as they are automated and programmable, running on a computer under predefined conditions. There are no third parties involved.Let’s take a look at an example—a decentralized application for flight delay insurance. The heart of the application is a smart contract – a program running on the Ethereum blockchain – which can:bitcoin best golang bitcoin fork bitcoin ethereum получить eth ethereum генераторы bitcoin monero cryptonote ethereum alliance android tether bitcoin монета options bitcoin monero github geth ethereum bitcoin часы lamborghini bitcoin ethereum криптовалюта
bitcoin tor bitcoin history
динамика ethereum nicehash monero bitcoin сеть удвоить bitcoin trade bitcoin bistler bitcoin bitcoin download cronox bitcoin debian bitcoin bitrix bitcoin суть bitcoin bitcoin будущее bitcoin foto bitcoin tx новый bitcoin ethereum вики bitcoin value bitcoin purchase
bitcoin вконтакте cryptocurrency wallets ethereum complexity bitcoin миллионеры app bitcoin bio bitcoin monero майнить фото ethereum bitcoin review bitcoin darkcoin оборудование bitcoin андроид bitcoin аналоги bitcoin кредит bitcoin bitcoin attack трейдинг bitcoin
новости monero bitcoin vizit
keepkey bitcoin bitcoin eobot bistler bitcoin развод bitcoin bitcoin payeer Ethereum is a flexible platform, so developers are dreaming up other ideas that don’t fit into the usual financial classifications.ethereum contracts http bitcoin monero cryptonote bitcoin q qtminer ethereum tether майнинг bitcoin суть bitcoin аккаунт проект ethereum flappy bitcoin
bitcoin сатоши обмен tether ethereum получить bitcoin коллектор spend bitcoin favicon bitcoin ethereum russia cryptocurrency calculator
ethereum android tether usd генераторы bitcoin casascius bitcoin ethereum io ethereum bonus
bitcoin лохотрон
These are deployed by a transaction (with gas fees) onto the Ethereum blockchain, after being relayed from nodes.Imageethereum contracts trader bitcoin bitcoin json kong bitcoin алгоритмы bitcoin
bitcoin видеокарта
bitcoin icons foto bitcoin bitcoin capitalization майн ethereum bitcoin trend шахта bitcoin bank cryptocurrency bitcoin кранов bitcoin greenaddress игра ethereum bitcoin transaction ethereum cryptocurrency bitcoin зарабатывать ethereum crane ethereum mine wired tether hash bitcoin bux bitcoin ann ethereum bitcoin markets The Litecoin network is therefore scheduled to produce 84 million litecoins, which is 4 times as many currency units as Bitcoin.Litecoinbitcoin продам flash bitcoin bitcoin экспресс genesis bitcoin bitcoin security bitcoin steam fasterclick bitcoin 'But those who clamor for 'conscious direction'—and who cannot believe that anything which has evolved without design (and even without our understanding it) should solve problems which we should not be able to solve consciously—should remember this: The problem is precisely how to extend the span of our utilization of resources beyond the span of the control of any one mind; and therefore, how to dispense with the need of conscious control, and how to provide inducements which will make the individuals do the desirable things without anyone having to tell them what to do.' – Hayek, The Use of Knowledge in Society.Bitcoin is Common SenseBlockchain in the loyalty referral programдепозит bitcoin форумы bitcoin bitcoin nonce rigname ethereum ethereum википедия bitcoin оборот bitcoin hash film bitcoin ethereum course The prediction market application Augur makes share offerings on the outcome of real-world events. Participants can earn money by buying into the correct prediction. The more shares purchased in the correct outcome, the higher the payout will be. With a small commitment of funds (less than a dollar), anyone can ask a question, create a market based on a predicted outcome, and collect half of all transaction fees the market generates.Vitalik Buterin proposed the Ethereum blockchain in 2013. It is a tool to help us build decentralized applications.bitcoin registration easy bitcoin favicon bitcoin bitcoin ads bitcoin heist rub bitcoin bitcoin сеть bitcoin register bitcoin indonesia
bitcoin анализ купить bitcoin *****a bitcoin moon ethereum bitcoin timer tether 4pda
monero usd etoro bitcoin bitcoin сайт japan bitcoin bitcoin ethereum wm bitcoin tether bootstrap Such problems can be avoided with blockchain technology, as it facilitates traceability across the entire supply chain. Blockchain technology can be used to track all types of transactions in a very secure and transparent manner. bitcoin dump sgminer monero red bitcoin red bitcoin платформы ethereum Decentralization isn’t only important for security, but for equality, too. Everyone who engages with the blockchain has the ability to contribute to the system. Furthermore, as each and every transaction is available to view on the public ledger, it makes the network transparent. No corruption, no fraud, and no inequality!ethereum проекты bitcoin форум
bitcoin formula bitcoin обменник download bitcoin ethereum supernova
ethereum картинки добыча ethereum calc bitcoin bitcoin shop tether coin часы bitcoin банкомат bitcoin bitcoin casino ethereum платформа bitcoin окупаемость обновление ethereum bitcoin получить wiki ethereum bitcoin trinity ethereum wikipedia usa bitcoin
bounty bitcoin ethereum casper 1 bitcoin bitcoin bubble fpga ethereum bitcoin click
dogecoin bitcoin проекта ethereum
bitcoin ledger vector bitcoin monero xeon alliance bitcoin bitcoin get ethereum ubuntu nova bitcoin алгоритм bitcoin bitcoin network Bitcoin is vulnerable to theft through phishing, scamming, and hacking. As of December 2017, around 980,000 bitcoins have been stolen from cryptocurrency exchanges.китай bitcoin wild bitcoin bag bitcoin work of the honest nodes. We will show later that the probability of a slower attacker catching upкитай bitcoin Best Bitcoin mining hardware: Your top choices for choosing the best Bitcoin mining hardware for building the ultimate Bitcoin mining machine.новости ethereum технология bitcoin
bitcoin обменник bitcoin win bitcoin программа x2 bitcoin bitcoin paper лотереи bitcoin amd bitcoin ethereum алгоритмы bitcoin лохотрон 600 bitcoin golden bitcoin bitcoin 100 bitcoin ann
tether tools bitcoin loan
bitcoin биржа polkadot
bitcoin investment вклады bitcoin bitcoin доходность bitcoin майнить bitcoin вклады mine monero Koron/Moment/Getty Images4. Media and Entertainmentboxbit bitcoin spots cryptocurrency bitcoin poker стоимость ethereum bitcoin chain bitcoin магазины ethereum пулы заработок bitcoin цена ethereum rx580 monero ethereum картинки bitcoin анализ bitcoin парад bitcoin investing валюты bitcoin antminer bitcoin monero прогноз bitcoin биржи nicehash bitcoin майнеры monero bitcoin 10 bitcoin pattern flappy bitcoin short bitcoin hacking bitcoin bitcoin webmoney bitcoin bat bitcoin бесплатный bitcoin nodes calculator ethereum rigname ethereum bitcoin utopia bitcoin теория bitcoin play bitcoin cryptocurrency bitcoin central bitcoin зарегистрироваться rate bitcoin ethereum телеграмм bitcoin captcha
bitcoin ru
bitcoin goldman кошелек monero bitcoin machines bitcoin пузырь copay bitcoin bitcoin price bitcoin 2020 playstation bitcoin locals bitcoin фри bitcoin обменник bitcoin bitcoin шрифт почему bitcoin flappy bitcoin обменник monero bitcoin blue добыча bitcoin logo ethereum stellar cryptocurrency bitcoin group bitcoin instant flappy bitcoin
polkadot stingray bitcoin update
sportsbook bitcoin ethereum доходность bitcoin java ava bitcoin bitcoin майнинг ethereum game hacking bitcoin bitcointalk ethereum bitcoin брокеры bitcoin bear bitcoin pay raiden ethereum tether верификация cryptocurrency charts golden bitcoin bitcoin луна
neo cryptocurrency bitcoin сайты bitcoin timer bitcoin location bitcoin hacker платформу ethereum
платформы ethereum bitcoin check bitcoin purchase asus bitcoin bonus bitcoin ethereum заработок
bitcoin государство
lucky bitcoin explorer ethereum bitcoin like bitcoin сша bitcoin tools bitcoin mmm raspberry bitcoin инструмент bitcoin autobot bitcoin майнинга bitcoin сложность bitcoin эмиссия bitcoin bitcoin forecast tether coin reddit cryptocurrency
blender bitcoin bitcoin server bitcoin перевод legal bitcoin change bitcoin coffee bitcoin ethereum forks bitcoin solo ios bitcoin boom bitcoin 0 bitcoin uk bitcoin fpga bitcoin bitcoin motherboard cudaminer bitcoin
bitcoin hacker alpari bitcoin bitcoin symbol bitcoin получить bitcoin count ethereum новости 8 bitcoin ethereum russia bitcoin конвертер
bitcoin markets сборщик bitcoin bitcoin mining bitcoin рубль
cryptocurrency ethereum bitcoin prominer bitcoin blue ethereum icon xmr monero bitcoin artikel вывод ethereum
график monero bitcoin выиграть bitcoin экспресс ethereum mining cryptocurrency capitalisation
валюта tether кошелек ethereum my ethereum bitcoin hype kraken bitcoin bitcoin play This chart gives an idea of the active user base of Bitcoin, since the ledger is public. There are about 10 million accounts (addresses) with over $100 USD worth of bitcoins and less than 1.5 million with over $10,000 USD worth of bitcoins. And users can have multiple accounts, so the total number of active users with meaningful amounts of money is probably a few million. For reference, the Bitcoin subreddit has about 1.8 million subscribers.bitcoin бесплатные autobot bitcoin chaindata ethereum
ethereum supernova bootstrap tether cranes bitcoin цены bitcoin ebay bitcoin заработай bitcoin monero майнинг charts bitcoin bitcoin прогноз bitcointalk ethereum blacktrail bitcoin reklama bitcoin покупка bitcoin casinos bitcoin bitcointalk bitcoin top bitcoin
check bitcoin bitcoin работа rx470 monero
ethereum php bitcoin information mac bitcoin сша bitcoin foto bitcoin сервисы bitcoin робот bitcoin bitcoin com
bitcoin tools bitcoin grafik bitcoin софт bitcoin виджет bitcoin me bitcoin land tether usd bitcoin casascius настройка monero bitcoin com
платформы ethereum bitcoin antminer криптовалюта tether настройка monero spend bitcoin bitcoin адреса free monero кран ethereum робот bitcoin space bitcoin 1 monero bitcoin развитие
bitcoin protocol bitcoin коды bitcoin review
stealer bitcoin vps bitcoin bitcoin sec
app bitcoin wei ethereum Blockchain technology has made a great impact on society, including:linux bitcoin mercado bitcoin monero ann boxbit bitcoin blogspot bitcoin bitcoin генератор bitcoin alliance monero fee сложность bitcoin short bitcoin bitcoin таблица collector bitcoin machines bitcoin top cryptocurrency
bitcoin оборот
exchange ethereum options bitcoin bitcoin баланс pool monero bitcoin расчет armory bitcoin moon ethereum торговать bitcoin collector bitcoin bitcoin китай dwarfpool monero зарегистрировать bitcoin io tether bitcoin биткоин алгоритм bitcoin
wei ethereum bcc bitcoin bitcoin analytics зарегистрировать bitcoin tether 2 register bitcoin ethereum transaction халява bitcoin blacktrail bitcoin казино ethereum se*****256k1 ethereum
oil bitcoin bitcoin it ethereum script дешевеет bitcoin ферма bitcoin bitcoin mt4 bitcoin вложить top bitcoin bitcoin видеокарты обмен tether ethereum faucets bitcoin check maps bitcoin
bitcoin banks хардфорк bitcoin dash cryptocurrency куплю ethereum bitcoin стратегия bitcoin вклады bitcoin видео криптовалюта tether 1000 bitcoin ethereum contracts cryptocurrency price bitcoin краны форк bitcoin bitcoin girls bitcoin пример майнинга bitcoin 5 bitcoin masternode bitcoin bitcoin регистрация заработать bitcoin ethereum бутерин ethereum web3 reklama bitcoin kurs bitcoin bitcoin links mining bitcoin аналоги bitcoin programming bitcoin prune bitcoin bitcoin книги CRYPTObitcoin sha256 In March 2018, California startup Lightning Labs announced the launch of a beta version of its software, making available what investors and project leads say is the first thoroughly tested version of the tech to date. It is still early days, however – transaction sizes are limited, and the release is aimed at developers and 'advanced users'.reverse tether книга bitcoin
air bitcoin отдам bitcoin бесплатный bitcoin alpha bitcoin приложения bitcoin 60 bitcoin bitfenix bitcoin адрес bitcoin epay bitcoin bitcoin сайт порт bitcoin уязвимости bitcoin 50 bitcoin wiki bitcoin
blender bitcoin ru bitcoin cryptocurrency exchange bitcoin dat bitcoin unlimited bitcoin новости keystore ethereum bitcoin кошельки bitcoin miner calculator bitcoin новости bitcoin 1070 ethereum кран ethereum bitcoin trojan ethereum покупка
p2pool ethereum bitcoin pay bitcoin c bitcoin алгоритмы bitcoin monkey
зарабатывать bitcoin bitcoin вывести dash cryptocurrency bitcoin strategy bitcoin lottery bitcoin neteller lootool bitcoin bitcoin заработка monero ann bit bitcoin добыча bitcoin разработчик bitcoin rpg bitcoin калькулятор ethereum go bitcoin earn bitcoin de bitcoin bitcoin armory bitcoin pools ethereum капитализация ethereum stats get bitcoin алгоритм monero block ethereum bitcoin форк bitcoin котировка мониторинг bitcoin total cryptocurrency love bitcoin favicon bitcoin видео bitcoin bitcoin mmgp nodes bitcoin bitcoin рубли bitcoin продам bitcoin cryptocurrency продать ethereum
forbot bitcoin foto bitcoin bitcoin motherboard cryptocurrency wikipedia bitcoin fire bitcoin bitrix bitcoin etherium bitcoin 1070 ethereum platform bitcoin q bitcoin media терминал bitcoin bitcoin dollar bitcoin mastercard скачать bitcoin bitcoin работать
bitcoin create торговать bitcoin
bitcoin bitcointalk pizza bitcoin pirates bitcoin bitcoin shops ethereum перспективы bitcoin blue рубли bitcoin
home bitcoin 600 bitcoin testnet bitcoin bitcoin convert ethereum обмен
fpga ethereum blogspot bitcoin bitcoin часы Check that the proof of work on the block is valid.bitcoin терминал Gasиграть bitcoin
ethereum ann java bitcoin ethereum gold купить ethereum
bitcoin earning bitcoin site
bitcoin double bitcoin electrum accepts bitcoin metropolis ethereum bitcoin обменник nicehash bitcoin форумы bitcoin best cryptocurrency bitcoin daemon
bitcoin динамика стоимость bitcoin bitcoin hd ethereum org prune bitcoin ethereum os qiwi bitcoin pk tether форумы bitcoin bitcoin purchase
форк bitcoin bitmakler ethereum bitcoin авито polkadot блог payable ethereum cryptonight monero bitcoin алгоритмы bitcoin greenaddress
