A Guide On How To Understand Bitcoin And Cryptocurrency?
Despite the fact that Bitcoin is one of the most looked for phrases (based on Google), it is a really technical subject for lots of people and may get overly technical for non geeks. However, there are now hundreds of cryptocurrencies and more and more people are starting to need to get to know how they work presumably driven by a dis trust of bankers, which is an entire totally different discussion.
It is troublesome to get a lay man’s clarification without having to make use of technical phrases resembling “secret keys”, “digital keys”, “digital wallet” and “cryptocurrency” so I will do my finest to keep things as straight forward as I probably can.
The Concept of Fiat cash i.e. paper currency, was formulated to make it easier for individuals to make an change for items or companies to replace bartering, as this can be limited to an trade between willing parties at best, whereas money permits you to provide your service or items, then purchase no matter service or items you require from another or others.
Subsequently, I would argue that Bitcoin is the 21st Century equivalent to bartering, in that it works as an change for items or providers directly between willing parties. Bartering had to be based on every promise and trust, to provide and deliver the promised items or service.
Today with Bitcoin or some other cryptocurrency every party would want a unique file or unique key to alternate the agreed value between every other.
By having a unique key or file it turns into simpler to keep a document on every transaction. Nevertheless, this too comes with problems.
Now, bartering is the easy change of skills or items as I’ve already stated, the trendy equivalent, or bitcoin is vulnerable to security breaches, i.e. theft or hacking of files, this is where a “cryptocurrency wallet” comes into the equation to safe your transactions.
Basically you need a safe location for your cryptocurrency/bitcoin purchases and holdings. This is the place the need for a hardware wallet comes from.
So now that you have written down/recorded which address holds which amount of Bitcoins after which up to date every time a transaction is made, the file is known as “The blockchain” – and it keeps a report of all transactions made with bitcoin.
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