The Fundamentals of Bitcoin. For Newbies or those Curious About the Hype

WHAT IS BITCOIN?

Bitcoin is Cryptocurrency, or I like to call Digi Money. It is currency that is said to be decentralized, therefore no government or bank can have absolute control over it.

I agree because Bitcoins is still new and extremely vast due to the vastness of the internet. The creator of Bitcoin Satoshi Nakamoto intended for this to be the case. But at the same time I disagree because crypto websites like Mycelium, Bitconnect, Blockchain, etc are websites where people sell, trade, buy and even store your cryptocurrency. These websites are central points for everyone to put their bitcoins into. The digi money is flowing into those platforms like a river flowing into a lake, or blood flowing to and from the heart, only difference is there are sooo many central points for cryptocurrency than banks and governments have for dollars. Can it be controlled?? I guess if you control the entire internet you can, but thats not possible...right?

WHAT IS A BLOCKCHAIN?

A blockchain is a central platform that is centralizing bitcoin as well as other forms of digimoney. You can go to blockchain.com to create a free wallet and sell, buy, and trade cryptocurrencies. Of course you're going to put your digimoney in there for that is its purpose. It manages and records your crypto transactions. Question is, is it recording it for you or for the people behind blockchain? Or for both?

WHAT IS DECENTRALIZED?

De = "not, do the opposite of, undo"
Centralize = "come to a center"

REFERENCE: http://www.etymonline.com/index.php

Bitcoin is definitely decentralized compared to the U.S Fiat Dollar. Bitcoin doesn't need to be printed and it doesn't need a bank or government to regulate its distribution. But be aware that other forces are at play to centralize digicurrency so you should get while the gettin's good. The moment cryptocurrency reaches the school curriculum will be when it is regulated. But that won't be happening in I predict 2020 or something.

WHAT IS MINING?

Mining from what I have researched is having a specific software to solve mathematical problems using the CPU from your computer and for the problems you solve you are rewarded bitcoin. BOINC is a platform where people can earn Gridcoin using this same technique. You should definitely check it out: https://boinc.berkeley.edu/

Bitcoin miners are the ones that approve the transactions between sellers, buyers, and traders.

You can become a bitcoin miner if you have a very good computer or some specific equipment that you can find on here: https://www.bitcoinmining.com/

WHAT IS A BLOCK REWARD?

A block reward is given when a miner is first to find a new block on the blockchain. Blocks are important in maintaining the security on any cryptocurrency platform such as Mycelium, Blockchain, Bitconnect, pretty much any site that allows you to do digi transactions. Blocks are like Digi Receipt Books. It keeps track of everything. New blocks are made on nodes within the Bitcoin network to record the new upcoming transactions and I will explain what those are very soon.

WHAT ARE NODES?

Nodes are programs within the Bitcoin Network that approve the transactions before they're recorded on the Blockchain. They are the authoritarian programs that make sure your transactions are legit. Without nodes, there would be a lot more hacking going on than there already is.

WHAT IS A CONFIRMATION?

The process of authenticating transactions. Once a transaction is requested and received by a node, it may be included in a block that is published to the network. When that happens, usually the transaction has been mined at a depth of 1 block. With each subsequent block that is found, the number of blocks deep is increased by one. To protect against the possibility of double spending, a transaction should not be considered as confirmed until it is a certain number of blocks deep just to be sure. Since this is a new currency, precautions are top priority.

REFERENCE: https://en.bitcoin.it/wiki/Confirmation

WHAT IS A TRANSACTION ID?

A transaction ID is a sequence of numbers and letters used to specifically identify a specific transaction. For Bitcoin, you can find it in the block chain. It will have the word hash right next to it on the far left. In the example below, the transaction ID is highlighted in yellow:

PICTURE FOUND HERE: https://www.cryptocoinsnews.com/bitcoin-transaction-really-works/

WHAT IS A BLOCK EXPLORER?

Block Explorer is a web tool that allows you to look up info about blocks, crypto wallet addresses, and transactions on the Bitcoin blockchain. Think of it as a browser like Internet Explorer except its for everything Bitcoin related! Pretty straightforward. https://blockexplorer.com/

WHAT IS A PROOF OF STAKE?

Proof of Stake is showing proof that you worked for what you earn. Its just like clocking in a work except its easier because the software does it for you. If you're a bitcoin miner and you mined 100,000s worth of Gridcoin on BOINC, BOINC will keep a record of that in their software. The Proof of Stake is needed for Nodes to approve the exchange of cryptocurrency let alone any other transaction.

FOR MORE INFO CLICK HERE: https://bitcoinmagazine.com/articles/what-proof-of-stake-is-and-why-it-matters-1377531463/

This post was inspired by Amir Jali and Craig Grant. Check out their Youtube pages they're very informative:

AMIR JALI: https://www.youtube.com/channel/UC4JG1ZEeBANjqFoC_tkUa8w/feed
CRAIG GRANT: https://www.youtube.com/channel/UCCEVzoj5KQAZBmuHWH1GM1Q

JOIN ME ON BITCONNECT: https://bitconnect.co/?ref=RetsuKai
BITCOIN FAUCETS:
Moon Bitcoin: http://moonbit.co.in/?ref=c928678079ae
Moon Dogecoin: http://moondoge.co.in/?ref=45441c505c3e
Moon Litecoin: http://moonliteco.in/?ref=816737a0b666
Bonus Bitcoin: http://bonusbitcoin.co/?ref=38762DE625CA
Grind Coinz: http://cryptotradingpro.com/?mref=AeroTensei