I think the terms need to be a bit more relate-able for most people to understand. Like the voting and lottery, happens automatically and is known as the process of mining and miners. You mention miners once or so at the end but talk about the process of it from the halfway point to the end. Also, I think for the most part, it needs to be noted that this entire process happens automatically behind the scenes. The way you explain it almost sounds like a lot of it has to be done manually on a PC by the users. For example when u first the validation / voting process, it sounds like in order for a users transaction to be accepted into a block, that user would have to generate the block ; another manual implication.
That's great feedback that I've heard from others. In my next (less technical) video I'm trying to say more things like "your Wallet app creates a transaction..."
I'm a software dev with 3 decades of experience, but still struggle comprehending all of the bitcoin ecosystem. The 22 minute "How bitcoin Mining Works" helps greatly, but it would help to see an explanation (i.e. historical analysis) of the first 10 or 20 transactions starting at block 0. The genesis block started with 50 BTC, so how did that get spent, when was the first block created, how many transactions did it have, how did new BTC produced by the miners get spent into the transaction chain etc. I'm thinking if I saw how the 3 purposes of mining were fulfilled thru the actual early transactions it would "click" for me and all the pieces would lock into coherent understanding.
By "spent into the transaction chain" I mean where did the coins produced from the first block that was mined go? I envision a tree diagram where the original coins from the genesis block (they weren't mined but were just created out of thin air to reside in the genesis blk; they might be referred to as "premined coins) were transferred (i.e. spent) to an address. Then a miner verified the source (gen. blk) and created the first blk that included that transaction.
The 22 min video is much better than this one. Although, I had to watch it like 4 times to get a better understanding of it . The BitCoin system is really complicated and is very very advanced . Watching that video is a must if you are planning on getting into the BitCoin world. Thanks for it video creator !!
Wow that's confusing. The guy who created this was definitely a genious to have all these checks and balances to have such a sustainable system. And no one even knows who created this system.
Your computer you typed your comment on is basically only here thanks to Einsteins relativity theory and all developments after that. Do you understand that? no. Yet you are using it. Like tyr rollins says...
I didn't feel like you explained the double spending prevention and how it translates to the block-chain. How does the "lottery" determine which transaction is legitimate? The way it's explained above implies that both transactions would enter the pool and whichever hash match occurs first gets added to the end of the chain. It obviously can't work this way. Thanks for the video! Lots of good information here.
Really nice videos, I have watched both this one and your more technical version. It has helped me to understand how bitcoin works. I am however stuck on the physical issues that are apparent in the future ie.. Total coin count maxes = inflation of bit coins. And the physical size of the ledger files becoming too large.
A question for anyone who can answer please? If the bitcoin mining countinually gets more difficult when more bitcoins are mined, wouldn't that mean that our numerical system is not infinite? Thanks
how much bitcoin do u think a quantum computer could make if they existed/got working cause i know people have made a quantum computer but getting it to predict the correct mathematical outcome is a hurdle .
So basically it’s momentous % increase in value is just 1 big pump! There is no way a system like this should increase in value any faster than standard currency long term. Any advantages it has in saving on fees is negligible compared to the cost of all the mining and processing surely, so why the sudden spike in value? How can someone turn $100 into $100000 without burning someone else? Bazzar
Questions: 1. What happens when people stop mining in 2140 and the math is no longer being done? 2. What happens when the block chain gets so huge that it takes hours and hours to download?
1. Fees will gradually take over as the main compensation for mining / maintaining the ledger. 2. Eventually only professional nodes will handle the full blockchain. There's no need to manage the ledger just to send and receive money. And every detail doesn't need to be stored, just a compressed footprint. The original satoshi paper discusses this if you'd like more detail.
CuriousInventor The whole point of BitCoin is that it has no fees. If you use "professional modes" won't that defeat the purpose of not having a central computer?
***** It's still decentralized, as anyone can become one of these nodes, just not every single user. The developers actually stripped out the ability to easily turn on mining from the base Wallet software back in 2011: bitcointalk.org/index.php?topic=5353.0 And with the advent of asics (special type of chip that mines faster than CPUs or GPUs found in typical computers), there's little point in attempting to mine unless you buy specialized hardware. There's some interesting stuff about fees eventually getting too small to incentivize miners: en.bitcoin.it/wiki/Tragedy_of_the_Commons It seems there's a link between fees and the security of the system, which may be impact the fee levels.
What happens if a sun spot or EMF bomb goes off and the grid and computers overload and burn up , sliver coins that you really have will still work and bitcoin ha will be gone like the wind they are made from, Even if you have a printed copy of your file , well anyone can make a printed copy, it will prove nothing to get your money Is every one in bitcoin going to meet to prove there printed copy is a real copy or a fake to each other , how will they find each other any way
+David Detweiler Coders mathematicians and economists are not the ones you want to try a ponzi scheme on. Bitcoin works and is open source. I have complete knowledge of how it works because I can read the code. I don't trust a third party about how it works, I can just see it. Like a mathematical proof. I'm not worried Pythagoras is going to change the length of the hypotenuse and make the roof fall on my head. The same way I know bitcoin is not a scam. There is a ton of info online even for non-geeks.
At 1:40 you mention the primate key is used with transaction information to create a signature. My understanding of public/private key is you cipher data with the public key that is shared with anybody then you decipher with your private key. So how something cipher with a private key can be read with a public key?
Really nice video! very elaborate and easy to understand. I don't get why people are saying this is hard to understand, it has some very technical things but you can get the idea. I'll check out more of your stuff when I have time ^^
Dude , awesome video i made one myself ( a non technical video, but in german ) and i thought it was good but now you made this and now i feel like shit :D .. You're really good at explaining , if you want german subtitles for your video message me. By the way you improved your animation skills .
blocks are just batches of transactions, seemed minor. On a related note, the 10 minute confirmation time didn't make it in, either. Didn't want to get into tradeoffs between system stability and energy waste.
The tech background sufficient (but not necessary) to understand this material is an electrical engineering background. Particularly, classes on information security (crypto/network security and the like). It would be fallacious to think an IT or software background would give you the sufficient education needed to understand this. That is in NO way a mockery to those fields of course. Apples and oranges, ya know?
+Robert panebianco infosec and crypto and datastructure (the blockchain is a novel datastrucure) are CS/math fields. EE has little to do with this. Can you explain what you mean?
We still don'tave anything that is physical, If there is a problem like electricity or computer or even government problems, all your value goes away. Why don't we just use real money? I mean REAL money!
so lets say someone were to intentionally spam the blockchain with shit orders, cant this problem simply be solved by forcing all of the legitimate transactions to increase their transaction fees?
![Kodak Black - Sharp Vibes [Official Music Video]](http://i.ytimg.com/vi/oEV0OoLJeIs/mqdefault.jpg)
I'm more confused about Bitcoins than I was before watching this video
+Saeid Momtahan Approved i thougth it was like Paypal
agree with u mate .....
that's one expensive lawnmower
Great graphics but talks so fast about so much technical detail in just 5 mins that after watching it twice I still only vaguely understand it.
Who knew that Alice can be so sneaky?
i still dont know what bitcoin is, WHOS WITH ME !
that lawnmower better be worth the $3200 dollars! 5.2BTC haha
I was thinking the same thing when I heard 5.2 BTC. XD
clear as mud!
WHAT???????????
I still don't understand bitcoin
I think the terms need to be a bit more relate-able for most people to understand. Like the voting and lottery, happens automatically and is known as the process of mining and miners. You mention miners once or so at the end but talk about the process of it from the halfway point to the end. Also, I think for the most part, it needs to be noted that this entire process happens automatically behind the scenes. The way you explain it almost sounds like a lot of it has to be done manually on a PC by the users. For example when u first the validation / voting process, it sounds like in order for a users transaction to be accepted into a block, that user would have to generate the block ; another manual implication.
That's great feedback that I've heard from others. In my next (less technical) video I'm trying to say more things like "your Wallet app creates a transaction..."
CuriousInventor And the new video is out: The Essence of How Bitcoin Works (Non-Technical)
I'm a software dev with 3 decades of experience, but still struggle comprehending all of the bitcoin ecosystem. The 22 minute "How bitcoin Mining Works" helps greatly, but it would help to see an explanation (i.e. historical analysis) of the first 10 or 20 transactions starting at block 0. The genesis block started with 50 BTC, so how did that get spent, when was the first block created, how many transactions did it have, how did new BTC produced by the miners get spent into the transaction chain etc. I'm thinking if I saw how the 3 purposes of mining were fulfilled thru the actual early transactions it would "click" for me and all the pieces would lock into coherent understanding.
By "spent into the transaction chain" I mean where did the coins produced from the first block that was mined go? I envision a tree diagram where the original coins from the genesis block (they weren't mined but were just created out of thin air to reside in the genesis blk; they might be referred to as "premined coins) were transferred (i.e. spent) to an address. Then a miner verified the source (gen. blk) and created the first blk that included that transaction.
Can you talk faster please?
The 22 min video is much better than this one. Although, I had to watch it like 4 times to get a better understanding of it . The BitCoin system is really complicated and is very very advanced . Watching that video is a must if you are planning on getting into the BitCoin world.
Thanks for it video creator !!
Wow that's confusing. The guy who created this was definitely a genious to have all these checks and balances to have such a sustainable system. And no one even knows who created this system.
can I sell people with bitcoin?
Best video yet but the system is too complicated and will prevent Bitcoin from ever being attractive to the masses for use.
Most of our every day devices are extremely complicated.
Your computer you typed your comment on is basically only here thanks to Einsteins relativity theory and all developments after that. Do you understand that? no. Yet you are using it. Like tyr rollins says...
tyr rollins
When is comes to money. people want and need to understand it to have confidence in their currency.
I was lying down when watching this I literally almost fell asleep.
I'm doomed plus there's math involved yea....
my new less-mathy version: The Essence of How Bitcoin Works (Non-Technical)
Lawless same here lmao..
what the fuck
Actually one of the better descriptions I have read/watched. I think I almost understand it now!
Wish I knew what Bitcoin was back then 😭
This really helped me understand bitcoin better thanks dude! :D You did a really good job at explaining it all.
Jct: What an incredibly complicated way to run your poker chips.
I didn't feel like you explained the double spending prevention and how it translates to the block-chain. How does the "lottery" determine which transaction is legitimate? The way it's explained above implies that both transactions would enter the pool and whichever hash match occurs first gets added to the end of the chain. It obviously can't work this way. Thanks for the video! Lots of good information here.
So, by mining bit coins you can get free money? Or you can only mine coins IF you are in the need to seal a deal?
How do you buy bitcoins? Is it possible to buy bitcoins with your regular visa bankcard?
If so how do you go about it?
Yeah thanks for going technical! There are so many vids ''how does this work'' that actually don't say anything informative
Finally found the a video with the perfect degree of technicality for me to understand!! Thanks this was awesome!
Someone is sitting back and collecting all the dollars for these Bitcoins !
Great video - what software did you use?
Really nice videos, I have watched both this one and your more technical version. It has helped me to understand how bitcoin works. I am however stuck on the physical issues that are apparent in the future ie.. Total coin count maxes = inflation of bit coins. And the physical size of the ledger files becoming too large.
A question for anyone who can answer please? If the bitcoin mining countinually gets more difficult when more bitcoins are mined, wouldn't that mean that our numerical system is not infinite? Thanks
how much bitcoin do u think a quantum computer could make if they existed/got working cause i know people have made a quantum computer but getting it to predict the correct mathematical outcome is a hurdle .
So basically it’s momentous % increase in value is just 1 big pump! There is no way a system like this should increase in value any faster than standard currency long term. Any advantages it has in saving on fees is negligible compared to the cost of all the mining and processing surely, so why the sudden spike in value? How can someone turn $100 into $100000 without burning someone else? Bazzar
my mind is full of dafuq
awesome video by the way.
I would love to meet the person who wrote/created bitcoin
will I ever get rid of math 😭
Questions:
1. What happens when people stop mining in 2140 and the math is no longer being done?
2. What happens when the block chain gets so huge that it takes hours and hours to download?
1. Fees will gradually take over as the main compensation for mining / maintaining the ledger.
2. Eventually only professional nodes will handle the full blockchain. There's no need to manage the ledger just to send and receive money. And every detail doesn't need to be stored, just a compressed footprint. The original satoshi paper discusses this if you'd like more detail.
CuriousInventor The whole point of BitCoin is that it has no fees.
If you use "professional modes" won't that defeat the purpose of not having a central computer?
***** It's still decentralized, as anyone can become one of these nodes, just not every single user. The developers actually stripped out the ability to easily turn on mining from the base Wallet software back in 2011: bitcointalk.org/index.php?topic=5353.0
And with the advent of asics (special type of chip that mines faster than CPUs or GPUs found in typical computers), there's little point in attempting to mine unless you buy specialized hardware.
There's some interesting stuff about fees eventually getting too small to incentivize miners: en.bitcoin.it/wiki/Tragedy_of_the_Commons
It seems there's a link between fees and the security of the system, which may be impact the fee levels.
CuriousInventor "anyone can become one of these nodes" Yeah, even CitiBank or the Federal Reserve.
What happens if a sun spot or EMF bomb goes off and the grid and computers overload and burn up , sliver coins that you really have will still work and bitcoin ha will be gone like the wind they are made from, Even if you have a printed copy of your file , well anyone can make a printed copy, it will prove nothing to get your money Is every one in bitcoin going to meet to prove there printed copy is a real copy or a fake to each other , how will they find each other any way
Sounds like a Techno Geek version of Ponzi Scheme
+David Detweiler Coders mathematicians and economists are not the ones you want to try a ponzi scheme on. Bitcoin works and is open source. I have complete knowledge of how it works because I can read the code. I don't trust a third party about how it works, I can just see it. Like a mathematical proof. I'm not worried Pythagoras is going to change the length of the hypotenuse and make the roof fall on my head. The same way I know bitcoin is not a scam. There is a ton of info online even for non-geeks.
Thank you for explaining this in simple terms. (I still don't understand it yet but was able to get a lot.) I will do more research now, cheers.
these videos are all boost up my mind. Thanking you.
Still dont get it ....
nowadays i feel happy in my mind. extrodinary peace is in my heart.
At 1:40 you mention the primate key is used with transaction information to create a signature. My understanding of public/private key is you cipher data with the public key that is shared with anybody then you decipher with your private key.
So how something cipher with a private key can be read with a public key?
well, how would I decide the value of an item in bitcoin? Suppose I have a $15 book, how much will it worth in Bitcoins?
This video got progressively more confusing, I wish I was good with computers and coding. Tried computer science in college failed miserable.
Nice work. How do i make a presentation like this?
what is bitcoin how can we start
are the cryptographic functions encrypted themselves? Is is possible for someone to find these crypto function keys and use them to decrypt bits?
2140? The only true coin of the future is going to be food, land, tools and manpower. Good luck eating your bit coins
I get a Bitcoin ad at the start of the video, coincidence?
what program you used to produce this video ?
Severely you've lost me after the first 30 seconds. Now I k.ow whAt I'm going to watch if I can't fall asleep. Deep scary stuff though man. 😒
very good explanation i like it
I think you need to know a basic accounting knowledge to understand this. I understood It for the first time. I thank you!
Thanks for the video :)
best bitcoin video EVER, awesome and well done
*heavy breathing*
thank you..clear.
Really nice video! very elaborate and easy to understand.
I don't get why people are saying this is hard to understand, it has some very technical things but you can get the idea.
I'll check out more of your stuff when I have time ^^
Dude , awesome video i made one myself ( a non technical video, but in german ) and i thought it was good but now you made this and now i feel like shit :D ..
You're really good at explaining , if you want german subtitles for your video message me.
By the way you improved your animation skills .
3:05 what solution?
It is very nice to listen. cash champ and bit coins are describes the definitions simple and honest.
Why did you leave out the whole thing about blocks?
blocks are just batches of transactions, seemed minor. On a related note, the 10 minute confirmation time didn't make it in, either. Didn't want to get into tradeoffs between system stability and energy waste.
How bitcoin doesn't work.... RUclips decide I should watch this 7 year old video..... 🤔
Great explenation!
Everyone is like "What is even going on?!" when it's actually really simple XD
Way to go Scott
It took years for me to understand I am now told Bitcoin is not a secure network it’s not a private coin which I thought it was
Nice explenation it had lots of good information
Your videos rock!
Thank you. Mathematically of course. 👍
Awesome video.... Many thanks.....
i wana be bob!!! he opened block....but great video. when ever someone asks me about coins i recommend this video...perfect!!
The tech background sufficient (but not necessary) to understand this material is an electrical engineering background. Particularly, classes on information security (crypto/network security and the like). It would be fallacious to think an IT or software background would give you the sufficient education needed to understand this. That is in NO way a mockery to those fields of course. Apples and oranges, ya know?
+Robert panebianco infosec and crypto and datastructure (the blockchain is a novel datastrucure) are CS/math fields. EE has little to do with this. Can you explain what you mean?
why this video dont have rus subs (
We still don'tave anything that is physical, If there is a problem like electricity or computer or even government problems, all your value goes away. Why don't we just use real money? I mean REAL money!
ookay so when mining we actually calculating other peepol transactions. what if everyone just mining and nobody make transactions?
if no one spent money there would be no purpose for money!
i hope that lawn mower comes with gold
if you have world's best computer.. how much dollars would you get a week?
Probably in the ballpark of twenty
I think it's pretty bad for the economy. Generating money without productivity will cause inflation.
That was the best explanation Ive evr seen. Kudos, sir!
Are there seriously people that think this is too mathy? wow....
WAT?
no thanks, i'll stick to real money o_o
+60groszy It's real money, I can sell stuff for btc and buy stuff with them. I think you mean you'll stick with government money.
Sounds to time consuming to me.
$49 000 for a lawn mower??
so lets say someone were to
intentionally spam the blockchain with shit orders,
cant this problem simply be solved by forcing
all of the legitimate transactions to increase their transaction fees?
Awesome
You're kidding me! Someone is supposed to understand this?! This is an example of why Bitcoin doesn't work, won't ever work.
Only 21k? Somebody might try to collect it all then not hire anybody
You are sooo smart. Whoever marries you would be so damn lucky.
Wait... what???
uhh... yeah... wait, what? But I can't do math!
Where soo lucky we can mine now
Idk why I’m getting this recommended now but 5.2 btc for a lawnmower don’t sound too bad
yes good
When this came out BTC was like $300...
Lol lawn mower we all now you don't go on the dark web to get a lawn mower
what?
what is the best site to buy bitcoin
very fast