What does Blockchain actually mean? 🤔
💡 Daily Reminder: Stay humble, stack sats
Bitcoiners,
Blockchain is thrown around as a buzzword in the crypto industry but it is actually a vital component of Bitcoin.
Here is an explanation of blockchain technology for beginners to understand its role in Bitcoin and why it is fundamentally different than the current central banking system we use.
What is it?
Blockchain (noun) - a system in which a record of transactions made in bitcoin or another cryptocurrency are maintained across several computers that are linked in a peer-to-peer network.
Bitcoin transactions are compiled into a block every 10 minutes on average.
Nodes and miners verify the transactions in the block are legitimate and then add them to the overall blockchain. The blockchain is a record of all the blocks containing verified transactions that date back to the creation of the Bitcoin blockchain in January 2009.
The Blockchain in 2022
Bitcoin's blockchain is currently at block height 755,500, which means there have been 755,500 blocks chained together since 2009. In another 10 minutes from writing this, the block height will be 755,501. The bitcoin blockchain is ever growing larger as long as the network continues to operate.
Blockchains role in Bitcoin
The blockchain is the source of truth for all verified transactions that occurred on the bitcoin network.
Any computer with some free storage space can interact with the Bitcoin network. Each computer running the Bitcoin core software shares a file called the Blockchain. Being a public open source file, the Bitcoin blockchain can be audited by anyone in the world to ensure transactions are being validated according to the rules of the software.
Try auditing the central banks' ledger of transactions to make sure there is not any funny business going on. Hint, you can't.
And that's why our current central banking monetary system is flawed.
If you want to learn more about blockchains, this video is a great tool to visualize how a blockchain works.
Happy Saturday,
-Pod
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Eric Podwojski
Founder, Bitcoin EDU
Twitter:Â @epodrulz
Disclaimer: This should go without saying: This is not financial advice. This is not investment advice. I write this newsletter for education and entertainment. Act accordingly.
