How Bitcoin works – Blockchain


3rd generation of money – Bitcoin

Bitcoin solves most of the problems of previous systems. You can send BTC instantly to any place in the world. All you need is an internet or mobile network. Furthermore, there are no commission and no intermediaries. The ownership of our money no longer depends on banks and governments because in the case of a transfer, we do not entrust the money to third parties. That’s why no one can influence it and cannot manipulate it or decide on their status. You cant fake or reprint Bitcoin. Tutorial how to earn online with Bitcoin at the bottom of page

  • Bitcoin is devoid of human factor. Everything is carried out according to pre-established rules adopted democratically by most system users.
  • In bitcoin, all operations are public but we do not know who performed them and who they personally belong to.
  • When creating a new address, there is no need to provide personal data. It is also impossible for any official to block this address and prevent us from accessing our BTC

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Blockchain – bitcoin transaction book

Accounting ledger recording every transaction in the Bitcoin network. If we send someone bitcoins, we created a book with information. It is saying that bitcoins from our wallet are deducted and then assigned to the destination address.

All transactions in the bitcoin network are recorded in an open settlement book. In addition, You can easily count who and how many bitcoins have on his account.

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The difference between traditional electronic banking and BTC

Banks keep accounting ledgers. They can, therefore, overwrite them, rewrite, change and manipulate the records contained therein. As an outsider, we can never guarantee whether the current data is historical or maybe it is after the modification. For bitcoin, current copies of the accounting ledger are available to all network users. Network contains hundreds of thousands of computers with bitcoin client. Everyone who is a system user and has a native Bitcoin network wallet, keeps such a copy of the book at home.

Unauthorized or authorized changes to this type of accounting ledger must be entered simultaneously on all other copies. Each traensaction made will be recorded in the account book once and for all, without any possibility of modification. The only option is to add new transactions to the decentralized settlement book – the blockchain system.

Anyone, at any time can check Bitcoin blockchain, for example here. Enter any address and we have access to all transactions in which this wallet participated as the sender or recipient. The book of accounts consists of blocks – i.e. individual transactions grouped together. Therefore, each block stores user transactions carried out in a given time period.

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How bitcoin works – earn online?

The whole bitcoin system is based on stable elements such as computing power, mathematics and cryptography. Furthermore, the human factor in the Bitcoin network is minimal, unlike traditional banking or clearing systems. No one can control Bitcoin. No organization or official can make unauthorized changes or manipulate the value of what we have in our wallet. Most noteworthy is that mathematics is a guarantee of the ownership of our money and not “by word and trust”. You cannot reprint or counterfeit Bitcoin!

Above all, bitcoin is an open source project. The source code of Bitcoin is public and everyone has access to it. The majority of users must accept all changes in the protocol by updating the sofware

How to earn online – invest in Bitcoin

Finally, you know how blockchain works and what Bitcoin is. Time to invest in Bitcoin or altcoins. Learn, how to earn online – click button below. Enjoy!