Category: Uncategorized
-
Examples of Hashing
So far, in earlier lessons, you’ve learned what hashing is and how hashing works. But in order to truly understand just what these specialized programs do, it’s helpful to see actual examples in action! Let’s see how the hashing process works using an actual hash function. Since SHA-256 is the chosen hash function of Bitcoin, let’s use it for our example. This is our…
-
How Does Hashing Work?
How does hashing work? In the previous lesson, I introduced the concept of hashing and relevant terms. Now, let’s learn how it works! Hashing is a mathematical operation that is easy to perform, but extremely difficult to reverse. The hashing process turns a piece of data into binary code, which is just a bunch of 0s and 1s. Then…
-
What is Hashing?
Before diving into the subject of Bitcoin mining, we need to take a quick detour and learn about a certain concept that’s foundational to cryptocurrencies. In order to truly understand how Bitcoin and other cryptocurrencies work, it’s crucial to first understand the concept of “hashing“. When you see the word, “hash”, some folks might think…
-
What is a Bitcoin Node?
The Bitcoin network is a peer-to-peer (P2P) network of “nodes”. In previous lessons, you learned what a network does and what a P2P network is. But what exactly is a Bitcoin node? What does a Bitcoin node do? How does a Bitcoin node work? A Bitcoin node, or more specifically, a Bitcoin “full node”, is simply a computer that runs the Bitcoin software (known as a…
-
What Does the Bitcoin Network Do?
What does the Bitcoin network do? As mentioned in the previous lesson, the Bitcoin network is made up of computers running the Bitcoin software. These computers or “machines” are known as Bitcoin nodes. Bitcoins nodes basically gossip. They love to talk to each other. But instead of talking about recent drama from the Kardashians, they communicate about what’s going on around the network.…
-
What is the Bitcoin Network?
What is the Bitcoin network? The Bitcoin network is a peer-to-peer (P2P) network. From the words of the Bitcoin God himself: “A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.” The Bitcoin network is made up of computers running the Bitcoin software (also known as…
-
What is a Network?
Instead of a governing body or central organization (like a bank) managing transactions, Bitcoin is run by a network made up of thousands of computers running some software that handles the sending and receiving of bitcoins. This network of computers is called the Bitcoin network. Before we dig deeper into the details of the actual Bitcoin network, let’s…
-
The Bitcoin System and Its Components
What is Bitcoin? While “Bitcoin” is usually mentioned as a cryptocurrency, it’s more than that. Bitcoin is actually a system. Like with any system, the Bitcoin system is a collection of elements or components that work together as a whole. Let’s take a look at the different components of Bitcoin. The Bitcoin system is basically just a bunch of computers…
-
What is a Distributed Ledger?
What is a distributed ledger? The first step to understanding how Bitcoin works is to become familiar with the concept of a “distributed ledger“. In the previous lesson, I explained how Bitcoin is a new type of recordkeeping system that Satoshi Nakamoto created to be able to move money around on the internet. Bitcoin is a new kind…
-
What Problems Did Bitcoin Solve?
What makes Bitcoin so revolutionary? Why is it often hailed as a game-changer in the world of money? As mentioned in an earlier lesson, a mysterious figure who called himself, Satoshi Nakamoto authored a white paper titled, Bitcoin: A Peer-to-Peer Electronic Cash System. The paper revealed details of creating “electronic” cash” (digital currency) free of control…