What is blockchain and cryptocurrency?

What is blockchain and cryptocurrency?

What is Blockchain and Cryptocurrency? - 1

You must enroll in this courseto access course content.

ENROLL IN THE COURSE

Ambreen Jabeen Shah

#254377

Hi, I have a question. Suppose I need to make a transaction of 100 dollars through block chain so shall I be submitting 100 dollars some where to purchase equivalent blocks? If yes, where shall I be submitting the money to purchase the blocks and how will be the other party be redeeming the blocks to get the 100 dollars?

Saarah Rasheed

#254774

You can purchase it through exchanges (using credit cards and bank transfers) like Kraken, coinbase, or P2P services (buy directly from other users) like Localbitcoins and Remitano, depending upon the jurisdiction you belong to.

Ambreen Jabeen Shah

#254784

Thanks mam, and what will be the process on the receivers end. I mean if a person has received blocks equivalent to $100 from where he or she can withdraw them in the form of cash. And how do we set the price of the coin e.g. exchange rate.

Saarah Rasheed

#255275

Adding to the answer, crypto-to-crypto transactions are stored on the blockchain so it merely tracks the ownership of the coin being transferred from one user to another. It does not track the equivalent usd amount tied to it, how much it was bought or sold for.

Whereas, the prices set on exchange which are at seller’s discretion. Since its free market buyers and sellers quote their own prices. Exchanges therefore, aggregate the bid (seller’s) and ask (buyer’s) prices and quote those as price of the coin.

Ambreen Jabeen Shah

#254791

Mam, could you please further elaborate what is meant by the balances in the transaction are held by every one. Suppose I am sending you a 100 coins how come other computers will be getting involved to check?

Hakim Mugabi

#254905

The idea is decentralization. As we have seen, there are many miners that validate and submit transactions to the blockchain and they do it for a reward, which is given to the miner who submits the block first, meaning other miners may also submit the block but they don’t get the reward. So, if your transaction is legit, more than one miner would have submitted it as part of their block. The transaction will have a transaction ID, Sender address and Receiver address. If every miner submits the same information of the transaction, then it will be included in that current block. And the number of miners that proved the transaction will be identified as confirmations.

Ambreen Jabeen Shah

#254980

Thankyou for the response. I need to clarify one more thing. How does the miners know that we are making a transaction. Is there any program that needs to be installed on all computers. For instance, in conventional banking when I send you $100 only me you and the bank will know. But as the concept states that miners validate the transaction to claim reward my question is who do they know that i am sending $100 to you while in bank other account holders doesn’t know what people are doing.

Justin Baket

#255962

Other computers get involved only to transfer and to validate blocks. You don’t have to worry about others knowing personal info outside of the interactions and block validity.

Ambreen Jabeen Shah

#255993

Thanks Justin. So in a layman term a block is a programming code that holds the information of transaction. But I am not understanding one thing. What will be a single block containing e.g. will it be the information of the series of transactions made by one single private key?

Yin Jin

#250113

If there comes lots of transactions, each block might be larger and larger so I think, the block size should be concerned. Can anyone please give me some instruction about it?

Saarah Rasheed

#250124

Block size is fixed. Increase in number of transactions increases the number of blocks produced, not really the size. It does however, impacts the processing speed of the network. Bigger sizes would make it easier to bundle together more transactions. Currently, the size for BTC blockchain is around 1-2MB. There have been hardforks (Case: Bitcoin Cash) and protocols (Case: Segwit) which in essence initiated to improve upon the speed of tx processing in the network by increasing block size limit, removing redundant information from blocks, etc.

Mickey Smith

#248693

Can anyone please help me understand blockchain

Saarah Rasheed

#249133

In simple words, blockchain is a ledger that maintains records of transactions. Unlike conventional bookkeeping, in blockchain everyone has a copy of the ledger, and is aware of what transactions are written down and maintained, therefore, adding transparency to the process. You can watch this course for more info.