Blockchain, Bitcoin and Digital Ledger Technology

I figured I would share this because it helped me to better understand blockchain technology, and it seems to be a foreign concept to many (less so, probably here on ATS, but in general, a lot of people have a hard time understanding cryptocurrencies and applications for blockchain tech.).

This podcast was put out by Stratfor yesterday.

I took some notes while watching.



Here is information from the first 8 minutes paraphrased. Essentially she explains the technology itself in layman's terms. Pretty fascinating concept:

Blockchain is the underlying technology used by cryptocurrencies like Bitcoin.

Blockchain is a digital ledger, which is computer code that acts as a virtual wallet. It can contain cryptocurrencies, or can contain information. Each participant in the blockchain has their own wallet, or their own information.

Exchange of that information, or exchange of cryptocurrencies, activate a signal (activation code) is verified by the entire group in the distributed space throughout the network. This is a key feature of the technology because it makes that information or the exchange of that “cryptocurrency”, because it institutes a level of trust.

It’s not just a single person or entity verifying the information, the entire blockchain verifies that information. This essentially can prevent fraud. Peer to peer transactions that don’t require a 3rd party to verify those transactions.

The “block” part of Blockchain is because all of the transactions are grouped together in blocks. What defines that block is a period of time. All of the computers or the “nodes” in the network are trying to solve a mathematical equation. That’s called mining and they get payments for that. This sets a time limit and tells you what happened first and what happened where and keeps the integrity of the network and those transactions. So there’s this publicly viewable “ledger”, that keeps everyone honest.

There’s no single node that can act as the “stopping point”, all of the computers are working in congress, working together.

Later in the podcast you hear from economic analysts and other experts in the field. I hope someone found value in this information. We will be hearing much more about blockchain in the years to come.

BTC isn't the only coin out there.

Newer blockchains are out with better technology.

There's delegated proof of stake.
bitshares.org...

Which is better than delegated proof of work.

a reply to: grey580

Indeed. Many better coins coming.

www.cardanohub.org...

My preferred designation.

originally posted by: grey580
BTC isn't the only coin out there.

Newer blockchains are out with better technology.

There's delegated proof of stake.
bitshares.org...

Which is better than delegated proof of work.

In the market, its never about the best tech, its about the most known tech. anyone can make a coin, but bitcoin is the known one, and that gives it perceived worth.

a reply to: SaturnFX

I don't disagree.

However there are a few other coins out, most notably Ethereum, that are also worth quite a bit.

Bitcoin is effing crazy.

Peaked over $7500 this month.

Sustained $5000 increase over the last year.

The stuff that makes instant millionaires.

a reply to: neo96

So if you had $5.00 of BTC in 2010 you would have half a mill, or $535,000.00 today

99bitcoins.com...

originally posted by: FamCore
a reply to: neo96

So if you had $5.00 of BTC in 2010 you would have half a mill, or $535,000.00 today

99bitcoins.com...

Pretty damn good for no work involved

a reply to: FamCore

Actually you'd have more.

BTC forked. So if you had 100 BTC you'd also have 100 of the forked coins.

BitCoinCash is worth 1300 now i think.

I sold most of my BTC earlier this year like a dumb #.(apprehensive bout the fork).

I still have a small investment.

In another seven years.

I'm gonna be rich

Blockchain is a fraud as much as bitcoin is, because of its extreme energetic inefficiency while doing something that other systems (e.g. a Bank) can do with much more ease.