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  • Why Are Bitcoin Wallets Needed?

    What is the purpose of using a Bitcoin wallet? Why is a crypto wallet needed anyway? In order to understand why Bitcoin wallets are needed, we need to look at the traditional approach of moving money between two people using….bank accounts. To keep track of each of their client’s money, a bank creates a ledger that keeps…

  • What is a Seed Phrase?

    What is a seed phrase? In the early days of Bitcoin, a wallet only generated one private key, which meant there was also only one public key and one address. Nowadays, crypto wallets now give you the ability to generate an almost unlimited number of private keys from a “master private key“. This type of wallet is known as a “Hierarchical Deterministic wallet”,…

  • What is a Bitcoin Wallet?

    In order to send or receive bitcoins, you need to use a Bitcoin “wallet“. But unlike a wallet in the real world that actually holds your cash (and debit and credit cards), a Bitcoin wallet does NOT actually “hold” your bitcoins. Instead, a Bitcoin wallet is a hardware device or software program that interacts with Bitcoin’s blockchain by providing…

  • What Makes Blockchain So Special?

    Blockchain this. Blockchain that. In the previous lesson, I gave a high-level technical overview of what a blockchain is that hopefully wasn’t too boring. Now that you know what it is… What’s so special about blockchain technology? Asking what’s so special about blockchain is like asking what’s so special about the internet. Or electricity. Or…

  • What is a Blockchain?

    What’s a blockchain? A “blockchain” or “blockchain technology” is an entirely new way of recording data on the internet in a way that makes it impossible or extremely difficult to change the data once recorded. Bitcoin, along with other cryptocurrencies, relies on blockchain technology in order to work  To understand cryptocurrencies. you need to understand blockchain. A…

  • How Bitcoin Mining Works

    How does Bitcoin mining work? In the previous lesson, you learned what a Bitcoin miner is, how it stores fresh transactions in its memory pool, and then starts the “mining” process by creating a candidate block. If what I just wrote sounds like a foreign language to you, I strongly recommend you start with the first lesson of my Beginner’s Guide…

  • What is a Bitcoin Miner?

    What is a Bitcoin miner? Does it involve any picks, shovels, or caves? NOPE. In this lesson, I will explain what a Bitcoin miner is. Here, we have the Bitcoin network again that contains conflicting transactions mentioned in the example. from the previous lesson. Some nodes contain a “purple ” transaction while others contain a “red ” transaction.…

  • What is a Mempool?

    Bitcoin answers the question, “Which transaction to keep?” The way Bitcoin answers this question is brilliant. Here’s how… Every node on the Bitcoin network shares information about new transactions. Transactions made on the Bitcoin network are NOT directly added to the blockchain. They are first collected and stored in what’s called the”memory pool”. EVERY computer…

  • What is Bitcoin Mining?

    What is mining in Bitcoin? “Mining” is the process of confirming transactions and adding them to the blockchain. Nodes that participate in mining are known as miners and form a critical part of the Bitcoin network. As part of the mining process, new bitcoins are created, which are “paid” to miners. A nice way to better understand mining is to first see how…

  • What Is Hashing Used For?

    What is the purpose of hashing? The main purpose of hashing is to verify the integrity of a piece of data. Since the hash generated is UNIQUE to the input data, it acts as a unique “fingerprint” of the input data. This makes a hash useful for verifying the integrity of data sent through insecure communication…