UNITED STATES — “The block-chain is simply the future of transactions, it’s potential is to transform everything from how we send money to how communities grow.”
I’ve never heard of the block-chain before. What exactly is it? – If you’re not familiar with the block-chain, and it’s still a relatively new concept in the world of electronic finance, you no doubt will have heard of Bitcoin. Bitcoin is a peer-to-peer electronic cash system, also known as “cryptocurrency”, which is simply allows people too make anonymous transactions on-line. However, Bitcoin records every single transaction made on its network in a public record. This is known as the “block-chain”.
How does Bitcoin work?- Bitcoin mining is an intricate process that involves using specialized mining software to uncover specific data sequences, or “blocks,” through intensive calculations. These blocks are generated when the Bitcoin “hash” algorithm is applied to the data. The individuals or groups who successfully accomplish this task are rewarded with bitcoins, which can be utilized for transactions online and offline. In the realm of cryptocurrency trading, there are advanced strategies that involve utilizing a cryptocurrency trading bot like the ones at https://immediate.net/nl/, automated software designed to execute trades on behalf of users, to navigate the volatile market efficiently.
How many “blocks” exist on the block-chain?- There is a countless number of blocks on the block-chain at any one time – as soon as one block gets completed, another is automatically generated.
Can Bitcoin transactions be traced easily on the block-chain?- Yes. All the blocks are added to the block-chain in a linear, sequential order. Each block contains a hash of the previous block, creating a linked series from the “genesis” block right the way through to the current one. As every Bitcoin user must have a Bitcoin address — a unique identifier that allows them to receive Bit-coins — the block-chain contains a complete set of information about every address using Bitcoin and their balances at any point in history.
So how do you keep track of all your bit-coins?- You’ll basically need something called a Bitcoin wallet: a free on-line wallet which you can use to make worldwide Bitcoin payments on your mobile or desktop.
How can I get a Bitcoin wallet?- You’ll need to visit Blockchain.info to create your wallet. You’ll need to enter your email address and create a password, but it only takes a few seconds — and you can then send and receive Bitcoin payments immediately.
Does this mean the Bitcoin block-chain works like a bank then?- No. You’re essentially your “own” bank; you have complete ownership over your currency and only you can check your Bitcoin balance, view your transactions and make payments.
