What is Blockchain - Explained in simple English

[Jamie McKane]

What is Blockchain - Explained in simple English

The basic concept of blockchain is not difficult to understand, but the application and implementation of the technology could change the way the world works.

 

[LCBXX]

Does this mean that miners basically earn Bitcoin for contributing to blockchain maintenece? Do they do this only for the Bitcoin system?

 

[Viva]

Does this mean that miners basically earn Bitcoin for contributing to blockchain maintenece? Do they do this only for the Bitcoin system?

Yes and yes. They only maintain the blockchain for the bitcoin network though.

 

[LCBXX]

Yes and yes. They only maintain the blockchain for the bitcoin network though.

So unless you are able to exchange your Bitcoin for other currency or goods/services it is effectively worthless? But as it stands you are able to - I wonder how that got started?

 

[konfab]

So unless you are able to exchange your Bitcoin for other currency or goods/services it is effectively worthless?

Just like any paper currency. Not many people deal with Zim dollars anymore

But as it stands you are able to - I wonder how that got started?

By someone buying two Pizza's for someone else in exchange for 10 000 BTC.

That amount is now worth about 150 million randelas.

Bitcoin have their value in that they are easy to use. For example, to transmit money overseas it is probably a lot simpler to perform the action over bitcoin. However the problem lies in that it is still wildly volatile.

 

[Creag]

Interesting read

 

[LCBXX]

/snip

That would explain why it is so volatile. In theory is is not really backed by anything, like gold. It is speculative value.

 

[Thor]

Blockchain is the future

 

[IRONPIG1]

That would explain why it is so volatile. In theory is is not really backed by anything, like gold. It is speculative value.

As are most currencies...

 

[rietrot]

As are most currencies...

All currencies. Except if you count debt as a proper backing.