Pompletter has all the letters that Pomp writes to more than 50,000 investors about business, technology, and finance. It is worth the time spent as he breaks down the complex topics related to Bitcoin (BTC) into easy to understand language, and he also shares opinions on various aspects of each industry.
Bitcoin (BTC) is a fully decentralized system which means – And the public transparent ledger meant that nobody had to trust a centralized third party. I now can transact directly with you across the bitcoin network, and no one or nothing can stop us from transaction. It is a fully decentralized system. Decentralized just means no body is under control. So, when people here that the bitcoin system is decentralized and no one is in control, the first question is well how does that work.
Therefore, essentially what is going on is that Bitcoin was launched on January 03, 2009. Then when it was launched, every single transaction that has ever happened, is on a public ledger. Now, if we go back to the monopoly game it would be that every time there was money trading hands either from the bank to the player or from player to player there was one of the players sitting there, and they wrote down the transaction.
So, Johnny gave Sarah 200 USD wrote it down on a piece of paper. The next line will be Sarah gave Anthony a 100 USD. And, every single transaction just got written there, but after 10 minutes of play, we said wait a second, Rip off that piece of paper from the notebook and put it to the side. That would then again start us writing down the transactions for the second 10 minutes of the game.
Bitcoin (BTC) Breaking down the 10 Minute Block
And, if every 10 minutes we ripped off the paper and simply stacked it on them, the last piece of paper, at the end of the game we will have an entire pile of paper, where we could go back and we could get at every single transaction that happened in the monopoly game. And, we could even go to the exact time. So, if we said hey between 07:10 p.m. and 07:20 p.m. I think I gave you 200 dollars. We could go back in the transactions and we could find 07:10 p.m. and 07:20 p.m and we could find that exact transaction written there and that is what the Bitcoin Blockchain does. And, that is a very over generalized example.
But, ultimately what the Bitcoin blockchain does is every single transaction that happens in about a 10 minute block it is written down digitally and then it gets blocked together. So, there is a block or a group of these transactions.
And, it is kind of tied up in a 10-minute block, and then that block is tied to or connected to the last ten minute block. So, the Bitcoin block chain is simply a chain of blocks that hold transactions in them. And, each block contains about 10 minute worth of transactions. And, they are all just chained together. And, so, the ten minutes that is occurring right now when it is over, we will take all the transactions that happened in that 10 minute period and we are going to chain it to the last 10 minutes.
And, you can go all the way to January 3rd 2009, and you can see every single transaction that has occurred. So, part of the beauty of this system is not only that nobody owns it and nobody controls it, but also that anyone in the world can go and see every single transaction – a fully public transparent system.
Sydney Ifergan, the crypto expert tweeted: “No kidding trying to understand Bitcoin (BTC) Antony Pompliano simply nailed the basics.”
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