Excited about Cryptocurrency? Learn the Basics here.
What is Blockchain?
XS Short Answer: A distributed database.
Answer: Picture a spreadsheet that is duplicated thousands of times across a network of computers. Then imagine that this network is designed to regularly update this spreadsheet and you have a basic understanding of the blockchain.
Information held on a Blockchain exists as a shared — and continually reconciled — database. This is a way of using the network that has obvious benefits. The Blockchain database isn’t stored in any single location, meaning the records it keeps are truly public and easily verifiable. No centralized version of this information exists for a hacker to corrupt. Hosted by millions of computers simultaneously, its data is accessible to anyone on the internet.
What is Bitcoin?
XS Short Answer: Bitcoin is a digital currency.
Answer: The reason why we (and many others) think it is such a remarkable innovation, is that this digital money is not controlled by any central authority. The Bitcoin network is completely decentralized, the currency itself is produced by a community, to which anyone can freely join. Bitcoin can be transferred almost freely and instantly in contrast to a bank transfer, where one must pay a significant amount of money and the completion might take days. Bitcoin is not like the money we know, it is produced and held digitally. It is created by a network of computers that use a certain software, solving mathematical problems.There will be only a finite number of Bitcoins that can ever be mined, so inflation is not a problem of this currency. An online payment with Bitcoin is fast, secure and as anonymous as you want it to be, and the number of goods and services for which you can pay with digital currencies is constantly growing as well.
What is Bitcoin Mining?
XS Short Answer: Bitcoin is created by the act of mining.
Answer: The members of the network provide their computational power for calculations of mathematical problems, and for this effort they are rewarded with bitcoins. However, the more members are mining, the more competitive is gets.
Computers are really good at solving these mathematical problems, so the Bitcoin Network purposely makes the solution more and more difficult, otherwise all of the bitcoins would be mined in a couple of minutes. This is why there are already many highly specialized hardware on the market, their only purpose being exclusively Bitcoin mining. As new models come out quite frequently, everyone must regularly optimize their mining gear, in order to stay competitive.
Once a new mining rig is introduced to the market, the old ones quickly become outdated and therefore unprofitable. At the same time this gradual development of the technology increases the overall difficulty of mining again. The result is a never ending circle of the constant need to optimize.
This explains why it's a must to start with the best available hardware and to start mining immediately in order for profitability for as long as possible and not lose a minute of precious mining time. Xonic Systems ensures access to the latest in mining hardware.
Is Blockchain technology the new internet?
XS Short Answer: YES, with endless capabilities.
Answer: The Blockchain is an undeniably ingenious invention – the brainchild of a person or group of people known by the pseudonym, Satoshi Nakamoto. But since then, it has evolved into something greater, and the main question every single person is asking is: What is Blockchain?
By allowing digital information to be distributed but not copied, Blockchain technology created the backbone of a new type of internet. Originally devised for the digital currency, Bitcoin, the tech community is now finding other potential uses for the technology
Is Blockchain Durable, Robust and Secure?
XS Short Answer: Yes, Yes and through development Extremely so.
Answer: Blockchain technology is like the internet in that it has a built-in robustness. By storing blocks of information that are identical across its network, the Blockchain cannot:
Be controlled by any single entity.
Has no single point of failure.
Bitcoin was invented in 2008. Since that time, the Bitcoin blockchain has operated without significant disruption. (To date, any of problems associated with Bitcoin have been due to hacking or mismanagement. In other words, these problems come from bad intention and human error, not flaws in the underlying concepts.)
The internet itself has proven to be durable for almost 30 years. It’s a track record that bodes well for Blockchain technology as it continues to be developed.
What is a Node?
XS Short Answer: Sorry, No short answer :)
Answer: A computer or identified access point connected to the Blockchain network using a client that performs the task of validating and relaying transactions gets a copy of the Blockchain, which gets downloaded automatically upon joining the Blockchain network.
Why do I keep hearing about the idea of decentralization?
XS Short Answer: By design, the Blockchain is a decentralized technology.
Answer: Anything that happens on it is a function of the network as a whole. Some important implications stem from this. By creating a new way to verify transactions aspects of traditional commerce could become unnecessary. Stock market trades become almost simultaneous on the blockchain, for instance — or it could make types of record keeping, like a land registry, fully public. And decentralization is already a reality.
A global network of computers uses Blockchain technology to jointly manage the database that records Bitcoin transactions. That is, Bitcoin is managed by its network, and not any one central authority. Decentralization means the network operates on a user-to-user (or peer-to-peer) basis. The forms of mass collaboration this makes possible are just beginning to be investigated.