Blockchain technology is essential for Bitcoin, but what is a Blockchain? And how does blockchain work? As a decentralised, tamper-proof database a blockchain has many applications – Bitcoin is only one of them. Watch the full video and by the end you will not only know what a blockchain is and how blockchains work, but also you will know more about what runs the blockchain and blockchains in combination with cryptocurrency. Basically, this is everything about blockchain explained in one video.
For more information on blockchain technology as well as the questions “What is a blockchain?” and “How does Blockchain work?” check out the text-version of Bitpanda Academy Lesson 3: https://www.bitpanda.com/academy/en/lessons/how-does-a-blockchain-work
Video Chapters:
00:00 – Intro
00:52 – What is a blockchain?
02:08 – What runs on the blockchain?
04:38 – How do blockchains work?
06:13 – What happens when you send Bitcoin using blockchain?
#WhatIsABlockchain #HowDoesBlockchainWork #Bitpanda #BlockchainTechnology #BlockchainExplained #Cryptocurrency #Digital currency
▬ What is a blockchain? ▬▬▬▬▬▬▬▬▬▬▬▬
A blockchain is a decentralised, tamper-proof database. Blockchain technology is a tool that is built on trust through technology. A blockchain is a special type of database as it’s open source. Transactions are not governed by a single party, but rather the entire transaction history is recorded in a decentralised, distributed ledger, which is really just a high tech version of a database.
Blockchain technology is basically a network of computers that all have the same history, built on nodes the computers all validate the transactions as they happen on the same software.
Blockchain technology is ideal for storing and processing sensitive information. The revolutionary aspect behind blockchain is that processes are not controlled by one, but by many computers, simultaneously, making it more robust.
▬ What runs on the blockchain? ▬▬▬▬▬▬▬▬▬▬▬▬
Bitcoin is a great example of an application that runs on the blockchain. Trust in Bitcoin is secured through a decentralised, fixed ledger that is not run by a single company or government but by an independent community of computers all around the world.
All computers are in the same network, called a peer-to-peer network. Inside the industry, this model is often called a “distributed trust model”.
▬ How do blockchains work? ▬▬▬▬▬▬▬▬▬▬▬▬
In a blockchain, transactions are stored in blocks, with each newly generated block referring to the block before it with a unique identifying number called a “hash” you can think of this as the blocks fingerprint. These blocks constitute a chain, hence the name “blockchain”. This chain continues on indefinitely.
▬ What happens when you send Bitcoin using blockchain? ▬▬▬▬▬▬▬▬▬▬▬▬
► You send a certain number of Bitcoin from one address to another. A transaction is requested in the network.
► The transaction request is then sent to a peer-to-peer network consisting of “nodes.”
► Bitcoin’s validation process and implementation of new blocks is done by “miners” who are rewarded for their participation in securing the network with newly-minted units of the cryptocurrency.
► The Bitcoin network of nodes validates the transaction using cryptographic algorithms. This process is called “mining.”
► Once the transaction is verified, it is combined with other transactions to form a new block of data within a fixed timeframe.
► The new block, which now contains your transaction, is added at the end of the existing blockchain.
►Your transaction is now complete and the block that includes your transaction is now integrated with the Bitcoin blockchain.
▬ About Bitpanda ▬▬▬▬▬▬▬▬▬▬▬▬
Bitpanda is a fintech based in Vienna, Austria and was founded in 2014 by Eric Demuth, Paul Klanschek and Christian Trummer. Bitpanda has 2 million users and more than 400 team members. With a PSD2 payment service provider licence, state-of-the-art security and streamlined user experience, Bitpanda has grown into a popular trading platform for newbies and experts alike. The goal is to tear down the barriers to investing and personal finance through digital assets and blockchain technology like cryptocurrencies, precious metals, fractional stocks and ETFs and to bring traditional financial products into the 21st century.
▬ More Videos ▬▬▬▬▬▬▬▬▬▬▬▬
► All videos: https://www.youtube.com/c/BitpandaOfficial/videos
▬ Subscribe ▬▬▬▬▬▬▬▬▬▬▬▬
Subscribe @Bitpanda: https://www.youtube.com/c/BitpandaOfficial/featured?sub_confirmation=1
▬ Social Media & Website ▬▬▬▬▬▬▬▬▬▬▬▬
► Facebook: https://www.facebook.com/bitpanda
► Twitter: https://twitter.com/bitpanda
► Reddit: https://www.reddit.com/r/bitpanda
► LinkedIn: https://www.linkedin.com/company/bitpanda/
► Website: https://www.bitpanda.com/en