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Back to the Basics: Bitcoin under the hood

Moolah
Whereas last week was a deep dive on Filecoin, this week is a deep dive on Bitcoin. This is particularly for those looking to gain a more technical understanding of Bitcoin and how the underlying technology works.
It’s easy to overlook what makes Bitcoin actually tick. Most people are in it to trade, and that’s OK, but it also helps to remind ourselves every now and then what made Bitcoin so damn exciting in the first place. Bitcoin took existing ideas from accounting, cryptography, networking, and proof-of-work to create something entirely new and—to this day—still functional, despite no single organization overseeing it.
Apparently bitcoin is now the ‘boomer coin’. It’s old and boring. But to truly understand the cryptocurrency space, we need to go back to the OG of cryptocurrencies and have a grasp on what made it work. Without that frame of reference, it becomes much harder to judge newer cryptocurrencies. In other words, understanding bitcoin is the foundation to understanding the rest of crypto. Some people have been at this since the early 2010s, so most of us—including me—are playing catch-up. But there’s never a better time to start than today. So let’s get started.
P.S. Everything I discovered below was taken from Haseeb Qureshi’s awesome article on becoming a blockchain developer.

Discoveries
Bitcoin uses ‘blockchain’ technology to achieve an immutable ledger. But what does that mean, exactly? This video dives into the mechanics of blockchain, how bitcoin achieves consensus for every transaction, and what proof-of-work looks like in practice.
Whereas the first video showed how a blockchain works in practice, this video demonstrates the innovativeness of bitcoin through gradual introductions of key topics: accounting ledgers, digital signatures, decentralization, hash functions, proof-of-work, and finally, blockchain.
As if two videos weren’t enough, this is an article from Ilya Grigorik—Principal Engineer at Shopify—discussing what pieces are needed to create a ‘minimum viable blockchain’. By the time you get through these three discoveries, you’ll have a solid grasp on what happens behind the scenes when someone transacts in bitcoin. If you’re still feeling shaky, check out the Haseeb Qureshi article in the intro above: he provides ‘extra credit’ resources for anyone looking to gain a better understanding.
NFT of the week
This week's Twitter thread
Connor Daly
How to build in crypto.

I'm Connor and I write threads explaining all the concepts you need to master blockchain development.

My goal is to demystify crypto's key ideas and help enthusiasts break into the industry.

Here's a running list of my threads. Enjoy and please share!
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Phil Hendricks
Phil Hendricks @PhilLHendricks

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