I enjoyed listening to episode 107 of the podcast “Epicenter Bitcoin” where Gideon Greenspan, CEO and Founder of Coin Sciences was interviewed about MultiChain. Gideon also writes a great blog. Here are my notes on parts of the podcast that I found particularly interesting. Misunderstandings and paraphrasing errors are mine.
Note: The term ‘miner’ is used frequently in the podcast but I try to refer to them here as block-makers or block-adders.
This gets fairly technical; if this is hard to follow, it may be helpful to read my introductions to blockchains, bitcoin, digital tokens, and smart contracts first.
Recently over dinner, I was asked to explain bitcoin mining, and I struggled as it is entangled with a number of other concepts. Here’s my attempt at breaking it down into bite-sized pieces.
I’m often asked what’s in a blockchain, so I put this infographic together as an aide memoire using bitcoin’s blockchain as the example.
Although other blockchains will have differences, the overall structures should be similar.
Infographic designed by fractalphia.com
This is also available in French produced by BitConseil.
Print a poster
Click here for a higher resolution version that is a great size and shape to print out on A3 and stick on your wall as a quick reference!
Important note: If you own more than $1,000 worth of cryptocurrency then you should definitely be using a hardware wallet instead of keeping coins on exchanges. I recommend a Trezor which you can buy for €89 directly from their website.
This article is a gentle introduction to bitcoin and assumes minimal technical knowledge.
Shorter companion pieces to this are:
In the popular media, you will often read comments like “Bitcoins are stored in a digital wallet”, or “You can send money using blockchain technology”. These comments can be misleading and can confuse. By the end of this you should understand enough to participate in a dinnertime conversation about bitcoin, and not be mystified by the topic.