Block chains are the future ofTransactions
Bitcoin is a digital currency built on a new technology
called the block chain.
Block chains have many potential uses but
first let's talk about how the Bitcoin currency works.
To send money now you have to go through a central authority like a bank.
Let’s buy something with bitcoin, and see what happens behind the scenes.
A New Album
Green Your Home
Tickets to a Game
To send or receive bitcoin, your computer needs an address.
It’s public. Anyone can see money sent to or from the address. It’s also anonymous. No one knows this address is you unless you tell them.
Your address comes with a key. No one can send anything from your address without it.
You keep your key secret, and can share your address.
You can get bitcoin by being paid in bitcoin or by exchanging another currency to bitcoin.
Choose a home upgrade to purchase.
Solar Panels
Efficient Windows
Smart Thermostat
Your computer creates a transaction, an electronic instruction to move bitcoin between addresses.
That's you
Your lucky recipient
Your transaction gets added to a ledger that anyone can look at.
Computers compete to package these transactions into solid unchangable blocks.
Packaging is hard work. It’s usually done by special computers dedicated to the task.
The winning computer receives a reward for the work. The reward is new bitcoin.
The winning computer then sends its completed block out to the rest of the network.
All the other computers check to make sure the new block is correct.
The new block becomes part of a chain that includes all older blocks. This is the block chain.
The hard work it takes to package each block, makes it near impossible to change the history of records.
The block chain was invented to record payments of Bitcoin, but it’s really more general than that. Find out how block chains will transform...
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