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0 A Guide On How To Understand Bitcoin And Cryptocurrency?
Though Bitcoin is among the most looked for phrases (in line with Google), it is a really technical subject for a lot of people and can get overly technical for non geeks. Nevertheless, there are now hundreds of cryptocurrencies and more and more persons are starting to wish to get to know how they work presumably driven by a dis trust of bankers, which is a complete different discussion.
It is difficult to get a lay man’s clarification without having to use technical phrases akin to “secret keys”, “digital keys”, “digital wallet” and “cryptocurrency” so I will do my greatest to keep things as straight forward as I possibly can.
The Concept of Fiat money i.e. paper currency, was formulated to make it less complicated for individuals to make an exchange for goods or providers to exchange bartering, as this could be limited to an alternate between two willing parties at finest, whereas cash allows you to provide your service or items, then buy whatever service or items you require from another or others.
Subsequently, I’d argue that Bitcoin is the 21st Century equivalent to bartering, in that it works as an alternate for items or providers directly between willing parties. Bartering had to be based on each promise and trust, to provide and deliver the promised goods or service.
Today with Bitcoin or another cryptocurrency every party would wish a novel file or unique key to alternate the agreed value between every other.
By having a singular key or file it becomes easier to keep a report on each transaction. However, this too comes with problems.
Now, bartering is the easy alternate of skills or goods as I have already stated, the modern equal, or bitcoin is susceptible to security breaches, i.e. theft or hacking of files, this is the place a “cryptocurrency wallet” comes into the equation to safe your transactions.
Basically you want a secure location for your cryptocurrency/bitcoin purchases and holdings. This is where the need for a hardware wallet comes from.
So now that you’ve got written down/recorded which address holds which quantity of Bitcoins and then updated every time a transaction is made, the file is known as “The blockchain” – and it keeps a document of all transactions made with bitcoin.
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