Trying to Understand 'Blockchain Currency' ... maybe my brain's rejecting it like bad food ...
@mythociate (21432)
Oklahoma City, Oklahoma
July 22, 2021 2:11pm CST
I mean, I guess I understand the basic concept of the decentralized verification ledger (tho my understanding probably isn't "the one they're using"): something like 'ALL the currency-users keep a ledger, and verify transactions between pairs of fellow currency-users.'
But my brain 'bails out' at the "miners"---I read (scrolling WAY DOWN at the link) that the transactions are verified 'when a majority of the "miners" (computers trying to decrypt the block) guess the same number'? 'bailing out' with a "What on Earth has 'guessing the right number' got to do with "a valid transaction"?' https://cryptocurrencyfacts.com/how-does-cryptocurrency-work-for-beginners/
I suppose it might go back to the way currency ORIGINALLY worked with 'miners' (the REAL ones, digging in the ground to find a precious metal)---a miner would bring his precious metal to a bank, the banker would store it in his safe and in return issue the miner a Promissory Note (or a few) good for the value of the metal stored, and the miner could then trade those Notes (rather than lugging around the whole treasury) for goods-&-services.
... I'm a visual learner, so the diagram starts at explaining it. Maybe you know how it works---who decides what math-problem wins the block, etc....
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4 responses
@mythociate (21432)
• Oklahoma City, Oklahoma
22 Jul 21
At the URL I gave above, they say that you don't NEED to "understand" it to profit from it (a lot like you don't have to understand the monetary system in order to use IT ... but they don't mention the parts of the money system you DO have to understand (i.e. you have to have AN INCOME SOURCE to make payments with )).
They say "all you have to do is download a mining program & let it run" or whatever ... I guess I'm "on a quest to discover!"
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@S4mmyboy (3266)
• Mumbai, India
22 Jul 21
@mythociate okay.... Please if possible then kindly share me as well after your discovery. I still try to understand from others as well.
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@mythociate (21432)
• Oklahoma City, Oklahoma
24 Jul 21
@S4mmyboy Hmm ... have you heard of the FDIC? the group that "guarantees" the money in the bank? (I'm not sure if that's exactly what they do.)
Maybe the way they 'guarantee' the bank's money is comparable to the way 'miners on the blockchain' guarantee bitcoin transactions.
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@Purnm021 (41)
• Indonesia
20 Oct 21
In my opinion The process of blockchains like a game and very complicated to learn. A lot of guidance from Bitcoin Application( I can't mention} share to us but not easy to understand ....But a lot of money in there..
Gaming , Mining , Trading and of course as investment of bitcoin are the money come. Bitcoin as a part of fintech is a future of money and it's challanging to me in learning althougth my brain like overheat
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@mythociate (21432)
• Oklahoma City, Oklahoma
22 Oct 21
'The bottom line' (for me) is that it's like the stock-exchange---sure, I can help others operate in it; but I cannot 'make money' in it, because I cannot 'invest in it.' (I know there are ways you can 'make bitcoin' without investing in it, and I've even used a "mining program" or two to earn credits; but I can't convert them into cash unless I give the crypto-people 'my credit-card information' (which I don't have).)
@Purnm021 (41)
• Indonesia
24 Oct 21
Yeah ....I think it's difficult to understand , how the crypto convert into cash ....After the alghoritma of mining ,the crypto get value ( $ 0.001) due to supply and demand but it can't convert into cash immediately. It need some next step ....Some people suggest to exchange to other crypto which easy to convert ...Difficult and complicated way of 1000 crypto which has been issue
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@kaylachan (69826)
• Daytona Beach, Florida
22 Jul 21
I failed math all four years in high school. I can't begin to understand that.
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@mythociate (21432)
• Oklahoma City, Oklahoma
24 Jul 21
just like with money, all you need to understand is 'where you've got some coming-from so that you have it when you need it'
@mythociate (21432)
• Oklahoma City, Oklahoma
24 Jul 21
That's one of the first things they say when they're about to explain it---you don't HAVE to understand, as long as you don't mind paying 'the little extra costs that pop up' (starting with "the energy-costs for running a mining-machine," then possibly "the funds to back the value of the currency," and other little additional costs to keep the currency valuable ... probably better to stay out of it until they give you a good enough reason to join in ...)
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