Bitcoin Blockchain Explained (step by step) - In 2008, someone who calls himself Satoshi Nakamoto, nobody really knows if he exists, publishes an article describing the cryptographic protocol Bitcoin.11 13 14.
This is basically (already very rough way) a way to encrypt (hide) something.
Take this practical example:
When a message is sent to a contact in whatsapp, it is encrypted. Only the receiver can read it. If someone steals it on the road, they do not understand it because it is encrypted, hidden. What he sees is something that looks like a cuneiform papyrus.
Someone in 2009, takes that bitcoin protocol and throws it to the public, already with the intention that it was a "currency", that is, something with a value to serve as an exchange instrument.
Remember when I said that putting exchange value on gold or the ticket was absurd because they did not eat. Well, now think about putting exchange value to something that can not be touched, which are just numbers. Something that does not exist
Some will be thinking. But the money that I exchange in electronic banking does not exist either. They are just numbers that move from one database to another.
And actually it is. But we come centuries thinking that it is physical money. What are tickets? That is backed by something. For gold, for assets, for goods, for whatever. That is, there is (implicit) confidence that there is something that supports it.
When in the 70s, since that much-remembered president of the USA detached the dollar value from the gold standard, it is no longer the confidence that there is something "tangible" behind, which gives the value to the physical currency.
What gives value to that currency, is the confidence that you have in the system, the state, the country (I am talking in this case of the USA), if you "put forward".
In any case, it is trust in something, what gives it its public acceptance, and implicitly its value. The more confidence you have, the more value that something will have.
Let's continue with the mentioned bitcoin.
I will try to explain a little chronologically what exactly it consists of.
As I mentioned , bitcoin is essentially a protocol.
This consists of taking accounts.
It is an algorithm (computer program), which is designed to solve complex mathematical problems.
These problems are solved by computers. At the beginning of time (2009), little computing power was needed, that is, few computers and little power.
Also to say that of course there were very few orates who came to think that it would walk. Whoever with half a finger would have thought that "the result of addition and subtraction" would be used to pay for coffee.
In these moments I regret my excess of sanity. I vaguely remember reading an article that spoke of a protocol that was intended as an alternative for payments.
What I do remember is having thought: now that we arrived at the arrival.
Inside me he told me: in the crisis of the dot com, the assets at least were pages that tried to do something. So be selling a pixel as advertising. But to think that you can get to exchange from a pencil, to a car for the result of mathematical accounts if it was the biggest waste of the poor madman's life that gave credence to that infraquijotesque idea.
Looking at it from a distance, I feel like that moron who said he would not record beatles because they were not commercial.
But: how is it that now if I understand that madness called bitcoin?
Because as always happens, it is after things happen when one is given the task of finding out.
Returning to what interests them, which is the explanation:
A group of computers connected to the Internet, are given the task of looking for that mathematical result, and whoever finds it takes the prize, which consists of: bitcoins (BTC is its acronym in the financial field).
In the beginning, very few computers were dedicated to extracting those accounts, and now they are millions irrigated by the world, with the highest percentage concentrated in China.
To continue desgrando concepts, say that the machines that are dedicated to these accounts are called mining, and the owners of these machines can call themselves miners.
This is in analogy to looking for "the new gold", which is how we could call the BTC.
We have then that BTC, is the mathematical result. And let's say we're talking about the first BTC result in history, to be faithful to the historical chronology.
The machines then continued taking accounts.
At some point a new result will be given, the machine that finds it wins BTCs and that result, which is called a block, joins the previous result or block, as if it were each a link.
If each block is a link, then united one after another make a chain.
A new big bang has emerged: the so-called "blockchain" that would be translated as the "chain of blocks".
When each block is created, it propagates through all the nodes in the network.
This is that all computers that are connected to the bitcoin network undermining - creating, or trying to create new blocks - will have a copy of the entire blockchain.
At this point I realize that it looks like the Internet itself. The Internet was created so that if one node falls, others do not die, that is, a decentralized network that does not depend on a single heart.
Likewise, if one node or thousands of nodes in the bitcoin network are disconnected, the rest will have a copy of the blockchain.
This makes it a decentralized network that is one of its strengths, and one of the factors, among several others, that generates confidence in this invention.
This blockchain is a database, which contains in each record a block, that is, a mathematical result. This record is public.
The owner of the BTC, may be the one who created it, or whoever owns it because, for example, I buy it from the one who created it.
This is another trust factor in the bitcoin protocol, the inviolability of the property of the good, since everyone in the network will always know that this bitcoin, that unique block, belongs to that user.
As I keep my bitcoin.
A third point that I will explain: How do I save my bitcoin?
Basically in a personal database called "wallet", which is translated "wallet".
It is a program that has the function of storing the blocks or BTC that are my property.
Strictly speaking, a wallet generates unique and universal codes that work like bank accounts, with which to make transactions.
It is a sequence of characters, very long, that would be the equivalent to the serial of a bank account.
You can have many of these accounts in a single wallet.
That unique and universal code gives me the right to block the chain that is associated with it, since everything is stored in the central database, whose copy is held by all the members of the bitcoin network, and therefore it is unalterable.
If I modify something of the database that I have in my local machine (somewhat titanic task), it would be my word, against the one of who knows how many millions of nodes.
That identifies me as the sole owner of a block.
If this BTC thing had not walked, I was boasting in my sublime sanity saying:
"Sure, if that's just like those people who waste money buying a star. What do you do with the code of a star? ... do you buy a piece of land on Jupiter? "
Now I feel like that teacher who told the Greenday people: "they will be successful when hell freezes" (as you can see, I have my personal blockchain of morons with which to identify myself).
Another detail nothing less, is the following, and that surely you will already be asking invaluable grasshopper, if you have my degree of paranoia ::
What happens if I have many BTCs in one direction of my wallet, and someone manipulates his wallet to create an identical address?Or if by some spell it appropriates my PC remotely and accesses my wallet and has access to my BTC.Or if you do not appropriate my PC, but see what I do on my screen and steal my keys.
This is handled with what is known as public key and private key.
The address of the wallet (equivalent to the serial of the bank account) if it is visible by all. And it must be.
But how do you know where to deposit?
That would be the public key.
That address or wallet account would be something like ::
31uEbMgunupShBVTewXjtqbBv5MndwfXhb
But let's call it identifier A,
if please?
If I am going to transfer 1 BTC of my wallet with the identifier A to another wallet of another person with the identifier B, I must "sign" the transaction. I must confirm to the network that in fact I, (of legal age and a native of this address ;-), that I am the owner of this BTC that is in the identifier A, I wish to transfer it simply and irrevocably (or the same ones, or fractions of the currency), to the identifier B, which is in a wallet of a third party.
This signature is known as a private key that, in simile, has been a password that only I know.
Ordering the ideas: the transaction is formally generated with the public keys, specifying that A will transfer to B an amount X.
And then with the private key I confirm that I actually authorize such transaction.
This process of authorizing with the private key deserves a separate text to this article, since it is a delicate step, very delicate, since it is precisely the moment in which they can be made of all the BTC that we possess if they were to rob us the private key .
There is a lot of information in the network about how to do it 100% safe, or rather to my way :: The paranoid mode.
Basically it is signing on a PC that is not connected to the network.
And I would add one that is formatted and used only to sign.
That you never get anything, just the pendrive with the transaction made with the public keys.
Yes. That's how I prayed about security.
You have to sign 100% secure a transaction. Another point is that it is preferable to have offline wallets to online alternatives. And yes, work everything in a "paranoid" way (very personal advice, of course).
The latter is another factor that gives confidence to this system of exchange. The level of security.
It is safer than when we do online transactions, e-commerce, e-banking, trading, etc.
Since in these operations they could not see the encrypted communications, but they could put in the machine a keyloger (reader of all the keys that we press), or other spyware.
And there is no padlock or bunker worth. We are naked
Can you see why I'm thematic with this security?
We arrived at the arrival
We understood what the exchange system consists of, conceptually and technically in practice.
Just the pininos of course. This is an article, not a book.
But what on earth is what gives value to the blessed bitcoin?
Who decides that it is worth 1 dollar or 3mil?
The answer is :: nobody and everyone.
Being the exchange system shielded in itself. Generating such confidence that we feel safe depositing our trust in it, the value is given by the same exchange system.
In the analogous world, the value of the exchange good is given by the confidence that is publicly granted to it.
The exchange system, ie the intermediaries, such as credit cards, payment platforms, cash transfer, etc., work on the good that has a value.
They are two separate things: good (currency), and service (exchange system).
In the bitcoin network, the value of the good is given by the same service, that is, the trust that is publicly given to the exchange system.
When estimating the collective that the system is reliable, secure, fast in its transfers and inviolable, the confidence generated by exchanging BTCs in a P2P manner generates the value itself.
If you understood the concept, I congratulate you. To my out of my vertical sanity to get to this point of power to explain it took me I do not know how much time, readings, videos, audios and electric shocks.
If the concept still seems a little crazy, it is that you still have to put everything in the context in which things occur.
We said that the protocol was made public at the end of the last decade.
And what happened at the end of the last decade?
That the financial system in which we deposited all the confidence made the world's ball collapse.
And the trust of centuries and millennia that we had in the traditional values, the intermediation services, the regulating entities, the same States that allowed that disaster, etc. went to ca ... to the garete.
They joined then the hunger with the desire to eat.
The distrust in the services of all the life, and of course also in the values of the goods, and in who said that everything was under control, everything fell like a row of domino.
With that comes the desire for something to come or someone to tell us "I am salvation".
And the bitcoin network complies not only with the most technical characteristics that it explains, but with the floor that is not based on the discredited and every day more unthinkable traditional financial systems of a lifetime.
But it is based on a P2P exchange, even at a distance, but P2P after all.
There is no one in the middle serving as a trusted entity, but trust is given by the same decentralized system and therefore inviolable, verifiable, incorruptible.
And the more confidence more value.
And the past value of 0 dollars 10 years ago has already overcome barriers of thousands of dollars.
Sometimes I think that this blockchain technology will be the future of the world, but I remember how things that we thought were non-displaceable turned upside down. I remember what google did with altavista.
Or Facebook to MySpace.
And so stop counting.
Sometimes I think that being all digital and therefore remotely manageable, in my abysmal ignorance it occurs to me that a computer worm can be created that can sneak from wallet to wallet, and alter a few million of those blockchain databases and create chaos at least, raise the doubt that inviolability is not such.
Of course, a connoisseur can come out and give me four slaps and tell me what I'm saying is an outrage.
The truth is that I think I am saying out loud what many people would think, perhaps not so concretely. But if not even trust the system fully.
Not being something "tangible", as we are used even in this stage of humanity, and having seen so many things that were said to be shielded, it is human, I think, to see it very carefully. More like prey to its predator, than vice versa. At least for now.
Although I'm bipolar too, and sometimes I think that because I'm paranoid, I'm missing out on getting this gold mine home.
That we are in the same stadium where we were when the car was invented, that people said it was the devil's thing and that it was not going to replace horses. Or that TV was going to be a failure because people would always prefer radio.
The one who missed investing in the origins of those inventions that changed the world as paranoid happened to him the same as to chacumbele, that the only one was killed (this is how we say in my country, and like you have no idea where that came from expression).
I miss a lot a lot
I wanted to make a more conceptual explanation.
And therefore I know that I missed many details of course.
As for example you can exchange fractions of bitcoin, which are called satoshis (which comes from the creator of the Satoshi Nakamoto protocol).
They are the equivalent of the cents of the metal coins of a lifetime. But the fractions of the bitcoin in satoshis can be much smaller than a cent of dollar, since they are divided much more than 100.
I have to say that for a common mortal it is becoming more difficult to mine every day, since mathematical operations are increasingly complex, require more computing power, and as of this writing, there are thousands of very powerful computers in the hands of little people with a lot of economic power to buy them. Apart from the electricity that is used. It is only profitable to mine in countries where electricity is not expensive.
I have to say that because of what was stated in the previous paragraph, the exchange of BTCs for goods / services is what gives this movement the magnitude it has right now. So much strength has taken that it is already managed in the different financial markets, as if they were stocks of coffee, commodities or forex. With speculative criteria and emotionalities that makes them move dramatically in their ups and downs.
I need to talk about economic concepts that are handled from the same conception of the coin, as the difficulty in creating it, increasingly steep, would generate little or no inflation in it.
I need to talk about bottlenecks, complex technical, which are finding the difficulty of mathematical operations are increasingly exponential, and how, among other things, this generates delay in the confirmation between transactions. And how are the debates, or better to say, pitched battles of war to death between developers who defend with life their point of view of what the solutions should be.
I have to say that as a result of the success of this coin (translated currency), variations of the original protocol have arisen and other coins (cryptocurrencies, cryptocurrencys) have been released to the public , which together are called altcoins (alternative coins). All of them based, of course, on the pillar concept of the blockchain (each coin has its blockchain).
There are many, and every day there is a new one that says it will revolutionize the world because it is based on "X" or "Y" or "Z".
I was going to name the most famous coins, and those that monopolize the biggest investment (trust) of the people. But better to see them here listed and ordered:
https://coinmarketcap.com/
And I think the most important thing of all, more important than the coins, is the blockchain concept. The trust of a decentralized database that does not depend on a single entity, manipulative or manipulable, that could distort it.
This concept is being adopted for many, many, many things throughout the world. And every day new practices arise.
Just to name the one that seemed most crucial to me: elections to choose candidates that are based on blockchain.
Nobody will be able to manipulate the data.
We are being protagonists of a paradigm shift in the history of humanity that right now I can not think of anything that matches it.
The most absurd, which is to rely on numbers that do not really exist, is in turn, and I believe, one of the things, if not the most transcendental invented by the human race.
It would mean that in practice, we would be masters of our destiny as a society, as a whole humanity.
The services that serve as intermediaries in the financial system look with caution, and palpable fear, this movement.
In daily practice cancel accounts of people and companies that are linked to blockchains of some coin.
And for me this would be the beginning of another world order, but seen from the friendly side of course.
By changing the financial and political systems, with this concept of decentralized, non-manipulable database, one could say that the world would change for the better. Or better to say, it is already changing. And I do not see him going back.
Actually I think so.
I have more rope, but I think you also have a life like to monopolize the rest of your week with a single reading.
Thanks for reading.
This is basically (already very rough way) a way to encrypt (hide) something.
Take this practical example:
When a message is sent to a contact in whatsapp, it is encrypted. Only the receiver can read it. If someone steals it on the road, they do not understand it because it is encrypted, hidden. What he sees is something that looks like a cuneiform papyrus.
Someone in 2009, takes that bitcoin protocol and throws it to the public, already with the intention that it was a "currency", that is, something with a value to serve as an exchange instrument.
Remember when I said that putting exchange value on gold or the ticket was absurd because they did not eat. Well, now think about putting exchange value to something that can not be touched, which are just numbers. Something that does not exist
Some will be thinking. But the money that I exchange in electronic banking does not exist either. They are just numbers that move from one database to another.
And actually it is. But we come centuries thinking that it is physical money. What are tickets? That is backed by something. For gold, for assets, for goods, for whatever. That is, there is (implicit) confidence that there is something that supports it.
When in the 70s, since that much-remembered president of the USA detached the dollar value from the gold standard, it is no longer the confidence that there is something "tangible" behind, which gives the value to the physical currency.
What gives value to that currency, is the confidence that you have in the system, the state, the country (I am talking in this case of the USA), if you "put forward".
In any case, it is trust in something, what gives it its public acceptance, and implicitly its value. The more confidence you have, the more value that something will have.
Let's continue with the mentioned bitcoin.
I will try to explain a little chronologically what exactly it consists of.
What is bitcoin?
This consists of taking accounts.
It is an algorithm (computer program), which is designed to solve complex mathematical problems.
These problems are solved by computers. At the beginning of time (2009), little computing power was needed, that is, few computers and little power.
Also to say that of course there were very few orates who came to think that it would walk. Whoever with half a finger would have thought that "the result of addition and subtraction" would be used to pay for coffee.
In these moments I regret my excess of sanity. I vaguely remember reading an article that spoke of a protocol that was intended as an alternative for payments.
What I do remember is having thought: now that we arrived at the arrival.
Inside me he told me: in the crisis of the dot com, the assets at least were pages that tried to do something. So be selling a pixel as advertising. But to think that you can get to exchange from a pencil, to a car for the result of mathematical accounts if it was the biggest waste of the poor madman's life that gave credence to that infraquijotesque idea.
Looking at it from a distance, I feel like that moron who said he would not record beatles because they were not commercial.
But: how is it that now if I understand that madness called bitcoin?
Because as always happens, it is after things happen when one is given the task of finding out.
Returning to what interests them, which is the explanation:
A group of computers connected to the Internet, are given the task of looking for that mathematical result, and whoever finds it takes the prize, which consists of: bitcoins (BTC is its acronym in the financial field).
In the beginning, very few computers were dedicated to extracting those accounts, and now they are millions irrigated by the world, with the highest percentage concentrated in China.
To continue desgrando concepts, say that the machines that are dedicated to these accounts are called mining, and the owners of these machines can call themselves miners.
This is in analogy to looking for "the new gold", which is how we could call the BTC.
We have then that BTC, is the mathematical result. And let's say we're talking about the first BTC result in history, to be faithful to the historical chronology.
The machines then continued taking accounts.
At some point a new result will be given, the machine that finds it wins BTCs and that result, which is called a block, joins the previous result or block, as if it were each a link.
If each block is a link, then united one after another make a chain.
A new big bang has emerged: the so-called "blockchain" that would be translated as the "chain of blocks".
When each block is created, it propagates through all the nodes in the network.
This is that all computers that are connected to the bitcoin network undermining - creating, or trying to create new blocks - will have a copy of the entire blockchain.
At this point I realize that it looks like the Internet itself. The Internet was created so that if one node falls, others do not die, that is, a decentralized network that does not depend on a single heart.
Likewise, if one node or thousands of nodes in the bitcoin network are disconnected, the rest will have a copy of the blockchain.
This makes it a decentralized network that is one of its strengths, and one of the factors, among several others, that generates confidence in this invention.
This blockchain is a database, which contains in each record a block, that is, a mathematical result. This record is public.
The owner of the BTC, may be the one who created it, or whoever owns it because, for example, I buy it from the one who created it.
This is another trust factor in the bitcoin protocol, the inviolability of the property of the good, since everyone in the network will always know that this bitcoin, that unique block, belongs to that user.
As I keep my bitcoin.
A third point that I will explain: How do I save my bitcoin?
Basically in a personal database called "wallet", which is translated "wallet".
It is a program that has the function of storing the blocks or BTC that are my property.
Strictly speaking, a wallet generates unique and universal codes that work like bank accounts, with which to make transactions.
It is a sequence of characters, very long, that would be the equivalent to the serial of a bank account.
You can have many of these accounts in a single wallet.
That unique and universal code gives me the right to block the chain that is associated with it, since everything is stored in the central database, whose copy is held by all the members of the bitcoin network, and therefore it is unalterable.
If I modify something of the database that I have in my local machine (somewhat titanic task), it would be my word, against the one of who knows how many millions of nodes.
That identifies me as the sole owner of a block.
If this BTC thing had not walked, I was boasting in my sublime sanity saying:
"Sure, if that's just like those people who waste money buying a star. What do you do with the code of a star? ... do you buy a piece of land on Jupiter? "
Now I feel like that teacher who told the Greenday people: "they will be successful when hell freezes" (as you can see, I have my personal blockchain of morons with which to identify myself).
Another detail nothing less, is the following, and that surely you will already be asking invaluable grasshopper, if you have my degree of paranoia ::
What happens if I have many BTCs in one direction of my wallet, and someone manipulates his wallet to create an identical address?Or if by some spell it appropriates my PC remotely and accesses my wallet and has access to my BTC.Or if you do not appropriate my PC, but see what I do on my screen and steal my keys.
This is handled with what is known as public key and private key.
The address of the wallet (equivalent to the serial of the bank account) if it is visible by all. And it must be.
But how do you know where to deposit?
That would be the public key.
That address or wallet account would be something like ::
31uEbMgunupShBVTewXjtqbBv5MndwfXhb
But let's call it identifier A,
if please?
If I am going to transfer 1 BTC of my wallet with the identifier A to another wallet of another person with the identifier B, I must "sign" the transaction. I must confirm to the network that in fact I, (of legal age and a native of this address ;-), that I am the owner of this BTC that is in the identifier A, I wish to transfer it simply and irrevocably (or the same ones, or fractions of the currency), to the identifier B, which is in a wallet of a third party.
This signature is known as a private key that, in simile, has been a password that only I know.
Ordering the ideas: the transaction is formally generated with the public keys, specifying that A will transfer to B an amount X.
And then with the private key I confirm that I actually authorize such transaction.
This process of authorizing with the private key deserves a separate text to this article, since it is a delicate step, very delicate, since it is precisely the moment in which they can be made of all the BTC that we possess if they were to rob us the private key .
There is a lot of information in the network about how to do it 100% safe, or rather to my way :: The paranoid mode.
Basically it is signing on a PC that is not connected to the network.
And I would add one that is formatted and used only to sign.
That you never get anything, just the pendrive with the transaction made with the public keys.
Yes. That's how I prayed about security.
You have to sign 100% secure a transaction. Another point is that it is preferable to have offline wallets to online alternatives. And yes, work everything in a "paranoid" way (very personal advice, of course).
The latter is another factor that gives confidence to this system of exchange. The level of security.
It is safer than when we do online transactions, e-commerce, e-banking, trading, etc.
Since in these operations they could not see the encrypted communications, but they could put in the machine a keyloger (reader of all the keys that we press), or other spyware.
And there is no padlock or bunker worth. We are naked
Can you see why I'm thematic with this security?
We arrived at the arrival
We understood what the exchange system consists of, conceptually and technically in practice.
Just the pininos of course. This is an article, not a book.
But what on earth is what gives value to the blessed bitcoin?
Who decides that it is worth 1 dollar or 3mil?
The answer is :: nobody and everyone.
Being the exchange system shielded in itself. Generating such confidence that we feel safe depositing our trust in it, the value is given by the same exchange system.
In the analogous world, the value of the exchange good is given by the confidence that is publicly granted to it.
The exchange system, ie the intermediaries, such as credit cards, payment platforms, cash transfer, etc., work on the good that has a value.
They are two separate things: good (currency), and service (exchange system).
In the bitcoin network, the value of the good is given by the same service, that is, the trust that is publicly given to the exchange system.
When estimating the collective that the system is reliable, secure, fast in its transfers and inviolable, the confidence generated by exchanging BTCs in a P2P manner generates the value itself.
If you understood the concept, I congratulate you. To my out of my vertical sanity to get to this point of power to explain it took me I do not know how much time, readings, videos, audios and electric shocks.
If the concept still seems a little crazy, it is that you still have to put everything in the context in which things occur.
We said that the protocol was made public at the end of the last decade.
And what happened at the end of the last decade?
That the financial system in which we deposited all the confidence made the world's ball collapse.
And the trust of centuries and millennia that we had in the traditional values, the intermediation services, the regulating entities, the same States that allowed that disaster, etc. went to ca ... to the garete.
They joined then the hunger with the desire to eat.
The distrust in the services of all the life, and of course also in the values of the goods, and in who said that everything was under control, everything fell like a row of domino.
With that comes the desire for something to come or someone to tell us "I am salvation".
And the bitcoin network complies not only with the most technical characteristics that it explains, but with the floor that is not based on the discredited and every day more unthinkable traditional financial systems of a lifetime.
But it is based on a P2P exchange, even at a distance, but P2P after all.
There is no one in the middle serving as a trusted entity, but trust is given by the same decentralized system and therefore inviolable, verifiable, incorruptible.
And the more confidence more value.
And the past value of 0 dollars 10 years ago has already overcome barriers of thousands of dollars.
Sometimes I think that this blockchain technology will be the future of the world, but I remember how things that we thought were non-displaceable turned upside down. I remember what google did with altavista.
Or Facebook to MySpace.
And so stop counting.
Sometimes I think that being all digital and therefore remotely manageable, in my abysmal ignorance it occurs to me that a computer worm can be created that can sneak from wallet to wallet, and alter a few million of those blockchain databases and create chaos at least, raise the doubt that inviolability is not such.
Of course, a connoisseur can come out and give me four slaps and tell me what I'm saying is an outrage.
The truth is that I think I am saying out loud what many people would think, perhaps not so concretely. But if not even trust the system fully.
Not being something "tangible", as we are used even in this stage of humanity, and having seen so many things that were said to be shielded, it is human, I think, to see it very carefully. More like prey to its predator, than vice versa. At least for now.
Although I'm bipolar too, and sometimes I think that because I'm paranoid, I'm missing out on getting this gold mine home.
That we are in the same stadium where we were when the car was invented, that people said it was the devil's thing and that it was not going to replace horses. Or that TV was going to be a failure because people would always prefer radio.
The one who missed investing in the origins of those inventions that changed the world as paranoid happened to him the same as to chacumbele, that the only one was killed (this is how we say in my country, and like you have no idea where that came from expression).
I miss a lot a lot
I wanted to make a more conceptual explanation.
And therefore I know that I missed many details of course.
As for example you can exchange fractions of bitcoin, which are called satoshis (which comes from the creator of the Satoshi Nakamoto protocol).
They are the equivalent of the cents of the metal coins of a lifetime. But the fractions of the bitcoin in satoshis can be much smaller than a cent of dollar, since they are divided much more than 100.
I have to say that for a common mortal it is becoming more difficult to mine every day, since mathematical operations are increasingly complex, require more computing power, and as of this writing, there are thousands of very powerful computers in the hands of little people with a lot of economic power to buy them. Apart from the electricity that is used. It is only profitable to mine in countries where electricity is not expensive.
I have to say that because of what was stated in the previous paragraph, the exchange of BTCs for goods / services is what gives this movement the magnitude it has right now. So much strength has taken that it is already managed in the different financial markets, as if they were stocks of coffee, commodities or forex. With speculative criteria and emotionalities that makes them move dramatically in their ups and downs.
I need to talk about economic concepts that are handled from the same conception of the coin, as the difficulty in creating it, increasingly steep, would generate little or no inflation in it.
I need to talk about bottlenecks, complex technical, which are finding the difficulty of mathematical operations are increasingly exponential, and how, among other things, this generates delay in the confirmation between transactions. And how are the debates, or better to say, pitched battles of war to death between developers who defend with life their point of view of what the solutions should be.
I have to say that as a result of the success of this coin (translated currency), variations of the original protocol have arisen and other coins (cryptocurrencies, cryptocurrencys) have been released to the public , which together are called altcoins (alternative coins). All of them based, of course, on the pillar concept of the blockchain (each coin has its blockchain).
There are many, and every day there is a new one that says it will revolutionize the world because it is based on "X" or "Y" or "Z".
I was going to name the most famous coins, and those that monopolize the biggest investment (trust) of the people. But better to see them here listed and ordered:
https://coinmarketcap.com/
And I think the most important thing of all, more important than the coins, is the blockchain concept. The trust of a decentralized database that does not depend on a single entity, manipulative or manipulable, that could distort it.
This concept is being adopted for many, many, many things throughout the world. And every day new practices arise.
Just to name the one that seemed most crucial to me: elections to choose candidates that are based on blockchain.
Nobody will be able to manipulate the data.
We are being protagonists of a paradigm shift in the history of humanity that right now I can not think of anything that matches it.
The most absurd, which is to rely on numbers that do not really exist, is in turn, and I believe, one of the things, if not the most transcendental invented by the human race.
It would mean that in practice, we would be masters of our destiny as a society, as a whole humanity.
The services that serve as intermediaries in the financial system look with caution, and palpable fear, this movement.
In daily practice cancel accounts of people and companies that are linked to blockchains of some coin.
And for me this would be the beginning of another world order, but seen from the friendly side of course.
By changing the financial and political systems, with this concept of decentralized, non-manipulable database, one could say that the world would change for the better. Or better to say, it is already changing. And I do not see him going back.
Actually I think so.
I have more rope, but I think you also have a life like to monopolize the rest of your week with a single reading.
Thanks for reading.