Demystifying the blockchain with a bottle of winesteemCreated with Sketch.

in #bitcoin3 years ago (edited)


In this guide I will be explaining the blockchain technology behind Bitcoin and its component parts (blocks, chains transactions and nodes). Specifically I will be diving into how this technology enables transactions to take place and how they are recorded inside a public ledger.

Mary buys a bottle of wine from John

I am going to use this everyday example of a transaction to help explain the blockchain and its component parts. Recently I volunteered on a natural wine farm in Chile where I did actually buy a bottle of wine with Bitcoin!

Read “Buying Wine with Bitcoin at a farm in Chile

Public Address


  • Each person or business that wants buy or sell using Bitcoin has a free public address on the blockchain.
  • When Mary buys the bottle of wine she sends Bitcoin to John’s public address which creates a transaction on the blockchain
  • This address is like a bank account number
  • To find out more how cryptocurrencies work read my guide “Demystifying Cryptocurrencies

Wallet


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