The first thing to understand is that Bitcoins or crypto currencies don’t actually exist. Get your head around that – the only thing that exists is a record of their transactions - essentially a form of debit and credit– they are completely intangible.
This isn’t too different from traditional money which is just paper stamped with some pictures and has no value – just the value implied by what it is supposed to be.
The reason Bitcoin and other crypto currencies are different is through their ledger based systems of credits and debits. In fact it’s the way the UK used to operate with credits and debits measured by the unique grain of two sheets of willow tree. So the blockchain is nothing more than a record of transfers or credits and debits.
A transaction needs three pieces of info the address paying, the amount and the address receiving it. To send a transaction you need to get into your wallet which can be done by using your private key, or a password if you’re using a more friendly user interface wallet. Public addresses and private keys are just strings of numbers and letters – a string being a long list of numbers – this is our Bitcoin address if you want to donate us some Bitcoins –
And QR Code
Once you have pressed send the Bitcoin transaction gets sent off to the miners in the Network. This can take some time to get confirmed as the block time for Bitcoin is set to ten minutes. Some merchants will wait for the transaction to be confirmed by the miners and hashed into a block. However sometimes merchants will accept on good faith that the transaction is true straight away.
- What Is OmiseGo (OMG)?
- What Is Qtum?
- GeliosTrade, An Easy-To-Use Investment Platform
- CRYPTOTAG Review: Securing Your Crypto Like You’ve Got Something To Lose
- Using Crypto to Bet on Sports with Sportsbet.io
- What Is Dogecoin (DOGE)?
- A Look into fast and secure cryptocurrency betting with BetMatch
- What Is Dai Stablecoin?
- What Is Chainlink?
- What Is Basic Attention Token (BAT)?
This website is only provided for your general information and is not intended to be relied upon by you in making any investment decisions. You should always combine multiple sources of information and analysis before making an investment and seek independent expert financial advice.
Where we list or describe different products and services, we try to give you the information you need to help you compare them and choose the right product or service for you. We may also have tips and more information to help you compare providers.
Some providers pay us for advertisements or promotions on our website or in emails we may send you. Any commercial agreement we have in place with a provider does not affect how we describe them or their products and services. Sponsored companies are clearly labelled.